The Federal Board of Revenue (FBR) has announced an extension for the deadline to file income tax returns for the tax year 2018. In Income Tax Circular No. 03, issued on Sunday, the FBR has moved the deadline from March 31, 2019, to April 30, 2019. This marks the fourth extension granted for the filing of tax returns for the specified year.
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Pakistan Revenue delivers the latest taxation news, covering income tax, sales tax, and customs duty. Stay updated with insights on tax policies, regulations, and financial developments in Pakistan.
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Income tax return filing may be allowed for a day or two
KARACHI: The income tax return filing may continue for next one or two days as last two days were on non-working days.
The FBR through Income Tax Circular No. 02 on March 15, 2019 extended the last date for filing annual returns for tax year 2018 up to March 31, 2019.
However, the last date is falling on Sunday and FBR had not arranged facility for making payment through banks.
Previously, the FBR planned to open the offices on March 29 and 30 to facilitate the taxpayers in making payment of duty and taxes.
However, State Bank of Pakistan issued a circular for facilitating payment by banks and NIFT on March 30.
According to tax experts the last date would be automatically moved to next date if the last date is falling on holiday under Section 10 of General Clauses Act, 1897.
Therefore, people would be allowed to file income tax returns on the next date of date filing automatically, if FBR does not further extend the date.
Previously, the last date of filing income tax returns was December 15, 2018, which was non-working day or weekend then the FBR allowed the return filing for another day.
Following is the press release issued by the FBR on December 15, 2018:
“Federal Board of Revenue (FBR) has allowed filing of Income Tax returns until 17th December 2018 because of the weekend falling on 15th December which was previously announced as the deadline for filing of returns.
“The statement issued by the Official Spokesperson FBR says that a number of queries have been received about extension of last date of filing of return but the return filing date is not being extended any further.
“However, since the last date of filing of return falls on a non-working day, hence as per General Clauses Act the closing date for filing of Income Tax returns falling on 15th December 2018 as per previous announcement is automatically extended to next working day i.e. Monday the 17th of December.
“The tax offices will be extending help in filing of returns on Monday till close of office hours and the returns will be received electronically till 12 midnight.
Moreover, the Commissioners are also authorized to grant extension for a period up to 15 days on case-to-case basis. Although the receipt of return will not be blocked after due date, yet as per existing law, the names of persons who fail to file return by the closing date (or by the date extended by the Commissioners) will not be put on the Active Taxpayers List.”
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FBR issues guidelines for refund payment through bonds
ISLAMABAD: In order to facilitate businesses / exporters whose refund claims are pending with Federal Board of Revenue (FBR) and they are facing liquidity problem, it has been decided to pay sales tax refunds through bonds to the claimants who express willing to get refund through bonds.
Following are important guidelines in this respect:
— The bond scheme pertains to sales tax refund only.
— The features of bond are provided under section 67A of the Sales Tax Act, 1990, as inserted vide Finance Supplementary (Second Amendment) Act, 2019.
— The bonds shall be issued to the claimants who express willingness for the same by giving an option at e.fbr.gov.pk using their login ID.
— The maturity period of bonds is three years from the date of issuance.
— The bonds carry a simple profit of 10% per annum payable at the end of maturity period i.e. against a bond of Rs. 100,000, Rs. 130,000 shall be paid after maturity to the holder of the bond.
— The bonds are transferable i.e. if a refund claimant who has been issued the bond can sell the same to another person / bank at a price agreed between the two parties.
— The bonds shall be acceptable by banks as collateral for getting advances / loans.
— There shall be no deduction of zakat on the bonds. Sahib-e-Nisab may pay zakat voluntarily as per shariah.
— The bonds shall be payable against Refund Payment Orders (RPOs) as issued in favour of the claimant.
— The bonds shall be issued in multiples of Rs. 100,000. The amount of refund payable as in excess of multiple of Rs. 100,000 shall be paid in cash by direct transfer through State Bank of Pakistan in the claimant’s account.
— The bonds shall be issued through Central Depository Company (CDC). The transfer / pledging of bonds shall be handled by CDC at the option of bond holder.
— The claimant who opt for issuance of bond should have an account with Central Depository Company (CDC). They can provide this account number while submitting their option for bonds to FBR.
— If a claimant does not have a CDC account, he still can opt for issuance of bonds. He will be guided regarding opening of CDC account.
— In case the bond holder wants to sell / transfer the bond, the buyer / transferee should also have a CDC account.
— At the end of maturity period, FBR shall pay the amount due under bond i.e. face value plus profit to the bond holder.
— If FBR decides, it can pay the amount due under bond to the bond holder including profit before maturity. This option is available only to FBR.
— The bond holder shall have to pay nominal fees to CDC on transfers / custody as provided in CDC schedule available at its website.
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FBR requested to extend return filing date up to April 30
KARACHI: The Pakistan Tax Bar Association (PTBA) has formally requested the Federal Board of Revenue (FBR) to extend the deadline for filing income tax returns for the tax year 2018 to April 30, 2019.
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SRB suspends sales tax registration of two goods transport companies
KARACHI: Sindh Revenue Board (SRB) has suspended sales tax registration of two goods transport companies for defaulting payment and non-compliance of monthly returns, officials said on Friday.
The SRB suspended sales tax registration of M/s. Sheikh Zahoor Goods and M/s. New Darwesh Goods Transport for violating provincial tax laws.
The SRB suspended registration of Sheikh Zahoor Goods for filing to file monthly Sindh Sales Tax returns for the consecutive seven tax periods from August 2018 to February 2019, despite issuance of notices on January 04, 2019, January 25, 2019 and March 13, 2019.
Furthermore, it is observed that the company had received revenue consideration of Rs72.05 million during the tax period from January 2018 to February 2019 but the taxpayer declared the sales of Rs16.89 million during the tax periods leading to short declaration of sales Rs55.15 million.
The SRB directed the company to take remedial action by April 04, 2019 for paying dues along with surcharges and e-file true and correct monthly sales tax returns.
In the case of New Darwesh Goods Transport Company, the SRB said that the taxpayer had failed to declare any sales during the tax period from March 2018 to February 2019, despite the fact that it had received consideration of Rs13.66 million during January 2018 up to December 2018, which revealed short declaration of sales by it.
The SRB had directed the company to submit a copy of income tax return of tax year 2017/2018 along with summary list of invoices in order to ascertain their Sindh sales tax dues, but it failed to make compliance.
The SRB asked the company to take remedial action by April 04, 2019 of paying outstanding dues along with default surcharge and e-file true and correct monthly sales tax returns.
The provincial revenue authority warned both the companies that if they failed to take remedial actions then the SRB would take necessary action under the law.
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FBR sets up DGBTB for taking action against tax evaders
ISLAMABAD: Federal Board of Revenue (FBR) on Friday established a new directorate for taking action against tax evaders.
The FBR notified to create Directorate General of Broadening of Tax Base (DGBTB) to bring potential taxpayers into tax net.
The new directorate, which was already made part of the statute, will work on the available data of persons and companies those were not into the tax net.
The directorate will have powers to identify new taxpayers, issue notice and to initiate legal action.
The FBR currently reportedly has huge data of persons having taxable income but not on the tax roll. In the existing set up the BTB action was taken as per routine matter.
The new directorate will also have jurisdiction over benami cases and take action as per law.
The FBR recently notified rules for benami laws which was approved by the National Assembly in January 2017. The FBR has transferred the cases of benami properties to BTB wing to initiate legal action against tax evaders.
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Income Tax Ordinance 2001: Income from pension funds tax exempted
KARACHI: The government has allowed tax exemption to the income derived by pensioners invested in various schemes, including pension funds.
The Second Schedule of Income Tax Ordinance, 2001 allowed tax exemption to the income derived by pensioners.
The following exemptions are available to the pensioners:
Any payment from a provident fund to which the Provident Funds Act, 1925 applies.
The accumulated balance due and becoming payable to an employee participating in a recognized provident fund.
The accumulated balance up to 50 percent received from the voluntary pension system offered by a pension fund manager under the Voluntary Pension System Rules, 2005 at the time of eligible person’s-
(a) retirement; or
(b) disability rendering him unable to work.
The amounts received as monthly installment from an income payment plan invested out of the accumulated balance of an individual pension accounts with a pension fund manager or an approved annuity plan or another individual pension account of eligible person or the survivors pension account maintained with any other pension fund manager as specified in the Voluntary Pension System Rules 2005 shall be exempt from tax provided accumulated balance is invested for a period of ten years:
Provided that where any amount is exempted under this clause and subsequently it is discovered, on the basis of documents or otherwise, by the Commissioner that any of the conditions specified in this clause were not fulfilled, the exemption originally allowed shall be deemed to have been wrongly allowed and the Commissioner may, notwithstanding anything contained in this Ordinance, re-compute the tax payable by the taxpayer for the relevant years and the provisions of this Ordinance shall, so far as may be, apply accordingly.
Any withdrawal of accumulated balance from approved pension fund that represent the transfer of balance of approved provident fund to the said approved pension fund under the Voluntary Pension System Rules , 2005.
Any benevolent grant paid from the Benevolent Fund to the employees or members of their families in accordance with the provisions of the Central Employee Benevolent Fund and Group Insurance Act, 1969.
Any payment from an approved superannuation fund made on the death of a beneficiary or in lieu of or in commutation of any annuity, or by way of refund of contribution on the death of a beneficiary.
Any income of a person representing the sums received by him as a worker from out of the Workers Participation Fund established under the Companies Profits (Workers Participation) Act, 1968.
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KTBA elects Rehan Siddiqui as president for 2019-2020
KARACHI: Karachi Tax Bar Association (KTBA) in the 62nd Annual General Meeting held on Thursday announced Muhammad Rehan Siddiqui as president of the association of the term 2019-2020.
The AGM announced following office bearers and executive committee after the election 2019:
Office Bearers:
Muhammad Rehan Siddiqui, President
Syed Hassan Naeem, Vice President
Syed Zafar Ahmed, General Secretary
Ammar Ather Saeed, Joint Secretary
Muhammad Mustafa Raheem, Librarian
Executive Committee Member:
Arshad Ali Siddiqui
Arshad Mahmood
Ghulam Rabbani
Iqbal Ahmad Abdan
Irfan Ghafoor
Khalid Mahmood Siddiqui
Muhammad Mehmood Bikiya
Syed Faiq Raza Rizvi
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FBR temporarily halts raids on tax evaders
ISLAMABAD: Federal Board of Revenue (FBR) has temporarily halted raids on tax evaders on assurance of business community.
The FBR has given an opportunity to non-compliant taxpayers to declare their income and assets by filing annual returns up to March 31.
At a media briefing on Thursday, Member Inland Revenue (Poilcy) Doctor Hamid Ateeq Sarwar and Member Inland Revenue (Operations) said that the FBR stopped the recovery campaign for fifteen days.
The members said that the raids have been suspended as a good gesture on the request of the business community.
Chambers and trade bodies have assured their cooperation in recovery of due amount of taxes from business community.
Federation of Pakistan Chambers of Commerce and Industry (FPCCI) and other business community had raised the issue of raids by tax offices during recent visit of FBR chairman Mohammad Jehanzeb Khan to Karachi.
Member IR Operations Seema Shakil confirmed the issuance of notice to former president Asif Ali Zardari. She said that relevant office in Karachi which is dealing the case.
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Ministry probes Indian expired mango pulp entry
ISLAMABAD: Ministry of National Food Security & Research (MNFSR) has taken notice of reports regarding the “import of expired Indian mango pulp”.
The Ministry of National Food Security and Research made thorough investigation of the matter, a statement said on Thursday.
In this backdrop the official stance of the Ministry of National Food Security & Research is as follows:
“Mango pulp is a regulatory article under Plant Quarantine Act (PAQ) 1976 and Plant Quarantine Rule (PAR) 1967 which is enforced by Department of Plant Protection (DPP) M/o NFS &R.”
For further assurance and strict compliance, SRO 1067(i)/2017 dated 20th October, 2017 was issued and amendments were made in the Import Permit Policy Order, 2016 to give clarity to the Custom of Pakistan and all stakeholders regarding import of all agro products in the country.
Furthermore, for the import of mango pulp, there is a mandatory requirement of a valid import permit from DPP, valid Phyto-sanitary Certificate from exporting country and Plant Protection Release Order (PPRO) of DPP, before releasing the consignment by the Custom authorities.
The Ministry of National Food Security through its attached departments has probed the matter after the news item was published and hence clarified that neither the DPP, has given any Import Permit nor has given any PPRO for entry in the country.
However, it is assumed that without doing needful, the said consignment was released in clear violation of PQA 1976 and PQR 1967 and SRO 1067(i)/2017. It is further reiterated that there is no role of Ministry of National Food Security & Research regarding import of expired mango pulp in the country.
However, the Ministry is taking up the matter with Federal Board of Revenue (FBR) and provincial Food Authorities to further probe the matter and take appropriate action defined in relevant laws/regulations.