ISLAMABAD: Federal Board of Revenue (FBR) has asked professional bodies of doctors, lawyers, engineers etc. to pursue their members for file mandatory declarations of income and assets.
In a tweet message the FBR said that members of all professional bodies are liable to declare their income and assets during a year through electronic return filing.
Sources in the FBR said that the authorities had decided to take harsh action against unreported income. They said that professionals of certain bodies were engaged in cash based transactions and avoid declaring true income or file declaration with nominal income.
The last date for filing income tax returns is December 31, 2019, which was already extended four times as the actual last date for filing income tax returns was September 30, 2019.
The sources said that the professionals were taking huge amount in term of fee from their clients / patients but mostly in cash bases.
The sources further said that the FBR would obtain third-party information of such unreported incomes besides assistance would be taken from withholding statements and returns filed by other taxpayers, who made payments.
They said that Income Tax Rules, 2002 prescribed record keeping by professional in order to verify their declarations.
The professionals (like medical practitioners, legal practitioners, accountants, auditors, architects, engineers etc.) are required to keep following records:-
(a) Serially numbered and dated patient-slip/ invoice/ receipt for each transaction of sale or receipt containing the following:-
(i) taxpayer’s name or the name of his business or profession, address national tax number or CNIC and sales tax registration number, if any;
(ii) the description, quantity and value of medicines supplied or details of treatment /case/ services rendered (confidential details are not required) and amount charged; and
(iii) the name and address of the patient/client:
Provided that the condition of recording address of the patient on the patient slip under this clause shall not apply to general medical practitioners;
(b) Daily appointment and engagement diary in respect of clients and patients:
Provided that this clause-shall not apply to general medical practitioners;
(c) Daily record of receipts, sales, payments, purchases and expenses; a single entry in respect of daily receipts, sales, purchases and different heads of expenses will suffice; and
(d) Vouchers of purchases and expenses.