Author: Mrs. Anjum Shahnawaz

  • Stock market gains 78 points in narrow band trade

    Stock market gains 78 points in narrow band trade

    KARACHI: The stock market gained 78 points on Tuesday as benchmark index was remained traded in a narrow band.

    The benchmark KSE-100 index of Pakistan Stock Exchange (PSX) closed at 31,829 points as against 31,751 points showing an increase of 78 points.

    Analysts at Arif Habib said that the KSE-100 index continued trading in a narrow band with limited upside.

    The index plunged by 315 points during the session and recovered +141 points later on.

    Selling pressure was mostly observed in Cement, Banks and Oil & Gas scrips. Cement sector led the volumes with 25.6 million shares, out of which MLCF realized 17.6 million shares, followed by FCCL (2.9 million)

    Banking sector followed Cement with 8 million shares, which was mainly contributed by UBL, BAFL and BOP. Power sector ranked third among top volume leaders, registering trade volume of 7.6 million shares, mostly contributed by KEL (4.6 million) and HUBC (2 million).

    Sectors contributing to the performance include Banks (-40 points), E&P (+33 points), Chemical (+19 points), O&GMCs (+17 points), and Food (+10 points).

    Volumes inched up from 86.6 million shares to 88.7 million shares (+2 percent DoD). Average traded value also posted a slight increase from US$ 24.8 million to US$ 24.9 million (+0.3 percent DoD).

    Stocks that contributed significantly to the volumes include MLCF, KEL, FCCL, PAEL and DGKC, which formed 34 percent of total volumes.

    Stocks that contributed positively include PPL (+23 points), COLG (+13 points), PSO (+13 points), BAHL (+12 points) and LUCK (+10 points). Stocks that contributed negatively include MCB (-15 points), UBL (-15 points), HBL (-14 points), MEBL (-10 points), and HUBC (-10 points).

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  • Rupee gains one paisa amid dollar demand for import payment

    Rupee gains one paisa amid dollar demand for import payment

    KARACHI: The Pak Rupee gained one paisa against dollar on Tuesday amid demand for import and corporate payments.

    The rupee ended Rs156.16 to the dollar from previous day’s closing of Rs156.17 in interbank foreign exchange market.

    Currency dealers said that the supply of remittances and export receipts helped the rupee to gain earlier in the day. However, the local unit lost the gains due demand from import and corporate payments.

    The foreign currency market was opened in the range of Rs156.12 and Rs156.17. The market recorded day high of Rs156.20 and low of Rs156.10 and closed at Rs156.16.

    The exchange rate in open market however witnessed appreciation in local currency. The buying and selling of dollar was recorded at Rs155.70/Rs156.20 from previous day’s closing of Rs155.80/Rs156.30 in cash ready market.

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  • Pakistan imports mobile phones worth Rs26 billion; up 52.4pc in July – August

    Pakistan imports mobile phones worth Rs26 billion; up 52.4pc in July – August

    KARACHI: Pakistan has imported mobile phones worth Rs26 billion during first two months of current fiscal year, which is 52.4 percent higher when compared with Rs16.98 billion in the same period of the last fiscal year.

    The higher import of mobile phones can be attributed to massive depreciation of Pak Rupee during the comparative year and deterrence created against smuggled mobile phones.

    According to Pakistan Bureau of Statistics (PBS) that rupee value converted into US Dollar on average monthly exchange rate provided by State Bank of Pakistan (SBP).

    The PBS said that the exchange rate for import value has been applied as: August 2019 (1$=RS.158.077024 ), July 2019 (1$=Rs.158.829694) and August 2018 (1$=Rs.123.789583).

    On the other hand the mandatory registration through system introduced by Pakistan Telecommunication Authority (PTA) also discouraged the influx of smuggle phones and resulted in high number of clearance through legal channels.

    The PBS said that in terms of dollar the import of mobile phones registered 19.4 percent growth during the period under review.

    The import of mobile phones was $163.484 million during July – August 2019 as compared with $136.91 million in the corresponding period of the last year.

    The country imported mobile phones worth Rs13.47 billion in the month of August 2019, which is 61 percent higher when compared with Rs8.37 billion in the same month of last year.

    The latest figures of August 2019 are also 8.38 percent higher when compared with Rs12.43 billion in July 2019.

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  • SRB suspends sales tax registration of Wateen Telecom

    SRB suspends sales tax registration of Wateen Telecom

    The Sindh Revenue Board (SRB) has suspended the sales tax registration of Wateen Telecom Limited due to the company’s failure to remit collected sales tax to the provincial treasury. The decision came after an audit revealed significant lapses in tax payments by the telecom provider.

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  • Stock market ends down by 360 points

    Stock market ends down by 360 points

    KARACHI: The stock market ended down by 360 points on Monday owing to negative sentiments in oil and gas sector.

    The benchmark KSE-100 index of Pakistan Stock Exchange (PSX) closed at 31,751 points as against 32,111 points showing a decline of 360 points.

    Analysts at Arif Habib Limited said that the start of the rollover week saw Market taking negative direction and an overall decline of around 400 points during the session.

    Although international crude prices were at similar levels as observed at the end of last week, local oil & gas chain showed receding stock prices from E&P to OMCs.

    Resultantly, OGDC, PPL, ATRL, NRL, PSO showed significant declines. Besides, Cement and Banking sector stocks also saw selling pressure.

    MLCF issued financial projections pertinent with 85 percent Rights issue that showed near term losses and caused the stock price to hit lower circuit.

    Cement sector led the volumes with 15.7 million shares, followed by Technology (9.5 million) and O&GMCs (8 million).

    Scrip wise activity shows MLCF at the top with 6.4 million shares, followed by PSO (5.2 million) and FCCL (4.3 million).

    Sectors contributing to the performance include Banks (-101 points), E&P (-94 points), Cement (-46 points), O&GMCs (-26 points) and Pharma (-21 points).

    Volumes declined from 153.3 million shares to 86.6 million shares (-44 percent DoD). Average traded value also declined by 34 percent to reach US$ 24.8 million as against US$ 37.3 million.

    Stocks that contributed significantly to the volumes include MLCF, PSO, FCCL, TRG and PAEL, which formed 27 percent of total volumes.

    Stocks that contributed positively include ENGRO (+19 points), SHFA (+5 points), BAHL (+5 points), JLICL (+5 points) and HGFA (+4 points). Stocks that contributed negatively include OGDC (-55 points), HBL (-45 points), PPL (-39 points), MCB (-21 points), and UBL (-20 points).

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  • Rupee falls by nine paisas on higher demand for import payment

    Rupee falls by nine paisas on higher demand for import payment

    KARACHI: The Pak Rupee fell by nine paisas against dollar on Monday owing to higher demand for import and corporate payments after weekly holidays.

    The rupee ended Rs156.17 to the dollar from last Friday’s close of Rs156.08 in interbank foreign exchange market.

    Currency dealers said that the demand for import and corporate payment was high because the market was opened after two weekly holidays.

    The foreign currency market was initiated in the range of Rs156.20 and Rs156.20. The market recorded day high of Rs156.23 and low of Rs156.16 and closed at Rs156.17.

    The exchange rate in open market witnessed stable rupee value. The buying and selling of dollar was recorded at Rs155.80 and Rs156.30, the same last Friday’s closing, in cash ready market.

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  • Car imports fall sharply by 85 percent in first two months

    Car imports fall sharply by 85 percent in first two months

    KARACHI: The car imports in Pakistan have sharply fell by 85 percent during first two months of current fiscal year owing to payment restriction imposed for customs clearance.

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  • Late return filers may get ATL status after payment of surcharge

    Late return filers may get ATL status after payment of surcharge

    ISLAMABAD: Persons, who fail to file their income tax return by due date, may be included into the Active Taxpayers List (ATL) after payment of surcharge.

    Inclusion in ATL is mandatory to avail reduced rate of withholding tax. Through Finance Act, 2019 the rates of withholding tax have been increased 100 percent for those persons who have either failed to file annual return or filed return after due date.

    This means only those individuals or companies will get ATL status who filed their annual income tax returns by due date.

    The FBR said that a person’s name will be part of the current ATL, if the Tax Return filed pertains to the Tax year of the relevant ATL.

    For example, to be part of the ATL published on 1st March 2018, a person must have filed a Tax return for the Tax year 2017.

    Similarly, to be a part of the ATL published on 1st March 2019, a person must have filed a Tax Return for the Tax year 2018.

    Restriction on including a person’s name on ATL, if the person has not filed Tax Return by the due date specified by Income tax authorities was introduced through Finance Act, 2018.

    For example, to be part of the ATL published on 1st March 2019, a person must file a Tax Return by the specified due date for the Tax year 2018.

    However, through Finance Act, 2019 a person’s name can be part of ATL, even if the person has filed Tax Return after the due date specified by Income Tax authorities.

    Furthermore, a surcharge for placement on ATL after due date of filing of Tax Return will be charged as under:

    Company Rs20,000

    Association of Persons: Rs10,000

    Individuals: Rs1,000

    The FBR said a that company or an AOP shall be included in the ATL, whose return is not to be filed due to incorporation or formation after 30th day of June relevant to the Tax year pertaining to the ATL.

    Joint account holders as an entity shall be deemed to be part of ATL if any of the persons in the joint account have met the criteria of being included in the ATL.

    Bank account held in the name of a minor shall be considered part of ATL if the parents, guardians of the minor or any person who has deposited money in minor’s account are deemed to have met the criteria of being included in the ATL.

    The FBR said that the late filers of Income Tax Return for Tax Year 2018 can pay “Surcharge for ATL” as defined under section 182(A) of Income Tax Ordinance 2001 by clicking on Tax Payment Nature “Misc” head in the PSID.

    Only after the payment of surcharge will the name of the late filer become part of ATL.

  • FBR launches simplified wizard for income tax return filing

    FBR launches simplified wizard for income tax return filing

    KARACHI: Federal Board of Revenue (FBR) has introduced a simplified wizard based income tax return filing mechanism to its Tax Asaan mobile application.

    This feature will help taxpayer to proceed step by step utilizing interactive questions for return filing, even familiarizing the taxpayer with the various issues related to tax and giving the best possible experience to file IT Return.

    The FBR said that the wizard based solution takes care of Salaried Individual Income Tax Return for resident/non-Resident taxpayers.

    The mobile application enables the taxpayer to draft the return offline giving them freedom and flexibility to file their return at their own convenience anywhere and at any time however to perform calculations and in order to submit the IT Return, internet connectivity is required by the application.

    The FBR said that Tax Asaan is available for both Android and iOS platforms for free download and gets installed on one tap. Once installed, you can find the application icon under your mobile Apps list. Simply tap on the application icon to get started and view the home screen as shown below:

    Signing On

    “Income Tax Return’ module can only be used after successful login. Registered user can Sign-In to application by using their valid account credentials to file Income Tax Return.

    Following are the steps to login/Sign-In Tax Asaan mobile application:

    Click on the hamburger button provided on the top right corner of the home screen to view the main menu. The application will load a left panel with list of all available features along with the option to sign-in.

    Tap on “Sign in” option from the left panel to navigate to the Sign in screen as shown below:

    Enter “User Name” and “Password” then click on Login button to sign in as shown below:

    Please note that you will need to use Login ID and Password as that of Iris. If you are not registered with FBR on Iris then use Iris Web portal for New Registration.

    Income Tax Return

    On successful sign in, the registered user name will appear on left panel replacing the “Sign In” option along with the available option of “Income Tax Return” for the signed in user as shown below:

    User can reach Income Tax Return page either from click on “Income tax Return” menu option from the left panel or can directly click on “Income Tax Return” tile from main dashboard as shown below:

    Income Tax Return for Resident Pakistani Taxpayers
    After successful login to Tax Asaan mobile application, follow these easy steps to file Income Tax Return:

    Tap on Income Tax Return tab, Application will redirect user on Income Tax Return year selection page as shown below:

    Click on any of the provided Tax year options shown on the screen to file income tax return for the selected tax year. Application will mark the tax year selection by highlighting the tax year and will redirect user on resident status screen as shown below:

    Click on “Resident” (or “Non-Resident”) tile to select the desired category, application will load sources of income page as residence status selection as shown below:

    To enter data under relevant source of income click on desired source tile i.e. “I have salary” as shown below:

    [Please note that in case no source of income or to skip this step enable the check provided as “I don’t have any source of income” and click continue to move to next step.]

    As soon as taxpayer click on any of the provided source of income options, the application will redirect taxpayer on data entry page of selected source as shown below:

    Enter details in provided fields and click “Ok”, application will save provided data and redirect user back to source of income page. You can add data against multiple source of income by repeating the same process and selecting each source of income one by one. Once you add data under any source of income, the application will load edit and delete option to modify or remove the data entered under that category / source as shown below:

    To edit data added under the specific source of income click on edit button, the application will redirect taxpayer on edit source of income information page. Similarly you can edit or delete specific records under the source by using the edit option provided in front of each record added as shown below:

    To delete all information under a specific source of income click on delete button as shown below, the application will remove all records added under the selected source.

    [Please note that the system will not show edit/delete buttons for a source if there is NO record added under the selected category.]

    After adding all information for the source of income click on “continue” button to move on next step for return filing as shown below:

    [Please note that you can go back to previous step i.e. source of income page by using back button.]

    Next step after adding source of income is to add Tax deductions. Click on desired option to enter tax deductions detail as shown below:

    Application will redirect user on details page of selected tax deduction option i.e. Vehicle Token as shown below:

    Add details of tax deduction under selected option. You can click on “Add Another” button to add multiple records. After adding details click on “Back” button to go back to the tax deductions main page. You can add data against multiple tax deduction options by repeating the same steps. you can click on “Save and Back” button to move back to Tax Deductions page.

    After adding all details under tax deductions, click on “Continue” button to move on to the next step for filing tax return as shown below:

    Application will redirect user on “Wealth Statement” page as shown below:

    Tap on Assets icon, Application will redirect the tax payer to Assets Declaration page as shown below:

    Click on “Net Assets Previous Years” icon to enter net worth of your Assets for previous years, the application will open following page:

    Enter Net amount (in PKR) of previous year assets in provided field for Amount.

    Click on OK button to add the amount, the application will redirect taxpayer back to assets declaration screen.

    Edit and Delete buttons will now appear below “Net Assets Previous Years” icon as shown below:

    In order to edit the saved details click on Edit Button below Net Assets Previous Years icon the application will redirect tax payer to Edit Net Assets Previous Years page.

    Edit the amount as needed and to save the updates click on OK button.

    To cancel the updated details click on Cancel Button.

    To delete all the saved details click on Delete button below Net Assets Previous Years icon.

    Click on Inflows icon to enter net worth of your Assets for current year, the application will open following page:

    Enter Net amount (in PKR) of Inflows in Text field labelled Amount.

    Click on OK button to add the amount, the application will redirect taxpayer back to assets declaration screen.

    Just like “Assets” click on “Expenses” icon to add details of expenses as shown below:

    Application will redirect user on add expenses page. Add the total amount of expenses for the selected Tax year and click “OK” button to save the value as shown below:

    After adding details of Assets and expenses, click on Continue button to reconcile assets. Application will load reconciliation page as shown below:

    [Please note that if application load reconciliation error then click on back button to edit and correct assets record in order to remove error and process again.]

    On successful reconciliation, click on continue button to move to next step for filing return. Application will redirect user on declaration screen as shown below:

    Click on “Submit” button to submit return. Please note that once submitted, you will not be able to do any further modification in return. On successfully submitting return application will redirect user on return summary report with a success message as shown below:

    You can also view the summary at any stage (during Return preparation) by Clicking the icon.

    Income Tax Return for Non-Resident Pakistani Taxpayers

    To file Income Tax Return as Non-resident taxpayer, the process of return filing will remain same as of resident taxpayer. Only the tax payer has to select the option as “Non-resident” from the application screen after selection of Tax Year as shown below:

    [Please note the all steps of return filing are pre-configured and will appear accordingly as per user’s selected option.]

    View Income Tax Return Summary

    Tax payer can view the summary of all entered information in income tax return at any time or step during the return filing process. To view return summary, click on the expand options icon on top left corner of the screen as shown below:

    Attach Payments

    In case the taxpayer has some income tax due i.e. payable at the time of reconciling Assets, then application will redirect user on “Attach Payments” screen before submitting the return as shown below:

    Taxpayer can attach multiple CPRs against the due amount however application will only allow taxpayer to submit return after attaching CPRs equivalent or greater than the due tax amount.

    Special Instructions for ERROR Correction

    In case user is unable to view all menu options in left panel or only “Sign In” option is listed in left panel then there must be some issue with the internet connectivity. To resolve this error, check internet connectivity and Close and Re-Run Tax Asaan mobile application.

    Reporting

    This system does not support any reporting capability right now however users can only view information specific to provided NTN/Registration Numbers as per available inquiry features in Tax Asaan mobile application.

  • Income tax return filing must for person owns above 1000CC motor vehicle

    Income tax return filing must for person owns above 1000CC motor vehicle

    KARACHI: A person owns a motor vehicles having engine capacity above 1000CC is mandatorily required to filing of income tax return for tax year 2019.

    (more…)