Condition of updating tax profile withdrawn

Condition of updating tax profile withdrawn

ISLAMABAD: The government has withdrawn the mandatory requirement of profile update by all taxpayers on IRIS portal.

In budget 2021/2022 speech, Finance Minister Shaukat Tarin announced to withdraw the condition.

He said that taxpayers are subject to multiple compliance.

Currently they are required to update their profile periodically. This requirement costs time, energy, and resources.

In view of the fact that significant information is already available through tax returns, and to facilitate taxpayers in line with ease of doing business, the requirement to update tax payers profile is proposed to be withdrawn.

Through Finance Act, 2020 a new section 114A was introduced to Income Tax Ordinance, 2001, under which following persons were required to furnish a profile, namely:

(a) every person applying for registration under section 181;

(b) every person deriving income chargeable to tax under the head, “Income from business”;

(c) every person whose income is subject to final taxation;

(d) any non-profit organization as defined in clause (36) of section 2;

(e) any trust or welfare institution; or

(f) any other person prescribed by the Board.

(2) A taxpayer’s profile-

(a) shall be in the prescribed form and shall be accompanied by such annexures, statements or documents as may be prescribed;

(b) shall fully state, in the specified form and manner, the relevant particulars of –

(i) bank accounts;

(ii) utility connections;

(iii) business premises including all manufacturing, storage or retail outlets operated or leased by the taxpayer;

(iv) types of businesses; and

(v) such other information as may be prescribed;

(c) shall be signed by the person being an individual, or the person’s representative where section 172 applies; and

(d) shall be filed electronically on the web prescribed by the Board.

The taxpayers were required to update profile by December 30, 2020. However, the deadline was extended up to June 30, 2021.

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