KARACHI: The government has eased burden on withholding agents of filing withholding statement on monthly basis.
Amendments have been introduced for ease of doing business through amendment Through Finance Supplementary (Second Amendment) Bill, 2019, which was presented in the National Assembly on Wednesday.
The amendments have been made to Section 165 of Income Tax Ordinance, 2001, whereby prescribed persons or withholding agents deducting tax from payment are required to furnish monthly statement to Federal Board of Revenue (FBR). It is proposed that the statement should be furnished biannually.
The finance supplementary bill proposed that the withholding agent shall provide details of persons from tax were deducted, included:
(a) the name, Computerized National Identity Card Number, National Tax Number and address of each person from whom tax has been collected under Division II of this Part or Chapter XII or to whom payments have been made from which tax has been deducted under Division III of this Part or Chapter XII in each half year;
(b) the total amount of payments made to a person from which tax has been deducted under Division III of this Part or Chapter XII in each half year;
(c) the total amount of tax collected from a person under Division II of this Part or Chapter XII or deducted from payments made to a person under Division III of this Part or Chapter XII in each half year; and
(d) such other particulars as may be prescribed:
According to the latest finance bill, the prescribe persons collecting tax under Division II of the Part or Chapter XII or deducting tax under Division III of this Part of Chapter XII shall furnish statements under Sub-Section (i) as per the following schedule, namely:
(a) in respect of the half – year ending on the June 30, on or before the 31st day of July;
(b) in respect of the half-year ending on the December 31, on or before the 31st day of January.
The amendments through the supplementary finance bill, 2019, however, empowered Commissioner Inland Revenue to direct withholding agents to provide details of specific period.
“Notwithstanding anything contained in this section, the commissioner as he deems fit, may by notice in writing, require any person, collecting or deducting tax under this Ordinance, to furnish a statement for any period specified in the notice within such period of time as may be specified in the notice.”
Copyright © PkRevenue.com 2019