The Federal Board of Revenue (FBR) has granted taxpayers to alter their income tax returns within a five-year timeframe from the date of the original filing for a specific tax year.
This transformative initiative underscores the FBR’s steadfast commitment to modernize tax administration practices and create a more taxpayer-friendly environment. By extending the revision window to five years, the FBR aims to provide taxpayers with ample opportunity to rectify any inadvertent errors or omissions detected subsequent to the initial filing.
As per the FBR website, taxpayers are empowered to initiate the revision process by submitting an application for revision through the IRIS platform. Once the application receives approval, individuals can seamlessly proceed to submit a revised income tax return via the same user-friendly IRIS interface.
Moreover, the scope of this directive encompasses the revision of Wealth Statements, which encapsulate details of assets and liabilities. Taxpayers can now effortlessly amend their Wealth Statements within IRIS prior to the issuance of a notice under sub-section (9) of section 122 of the Income Tax Ordinance, 2001, eliminating the need for a separate application for approval.
The statutory framework governing this revision mechanism is delineated in Section 114(6) of the Income Tax Ordinance, 2001. Under this provision, taxpayers who identify any inaccuracies or omissions in their filed returns are entitled to submit revised returns, subject to certain stipulations. These conditions necessitate the submission of revised or audited accounts (where applicable), a comprehensive written explanation elucidating the reasons for the revision, and approval from the Commissioner.
Nevertheless, exceptions to these conditions exist under specific circumstances, such as when the revised return is filed within sixty days of the original filing, providing taxpayers with added flexibility and expedited resolution of discrepancies.
Furthermore, Section 114(6A) of the Income Tax Ordinance, 2001, introduces provisions to mitigate penalties for taxpayers who voluntarily file revised returns accompanied by the payment of any tax shortfalls or amounts sought to be evaded. This proactive approach not only encourages compliance but also mitigates punitive measures, thereby fostering a culture of transparency and cooperation between taxpayers and tax authorities.
In light of these regulatory reforms, the FBR anticipates a marked enhancement in tax compliance levels and a reduction in the incidence of erroneous filings. By affording taxpayers the flexibility to rectify errors within a reasonable timeframe, this initiative is poised to contribute significantly to a more efficient and effective tax administration process in Pakistan.
In essence, the FBR’s latest directive represents a pivotal step towards achieving greater transparency, accountability, and fairness in the nation’s tax regime, ultimately fostering trust and confidence among taxpayers while advancing the overarching goals of economic development and fiscal sustainability.
