FBR explains benefits of timely filing income tax returns

FBR explains benefits of timely filing income tax returns

ISLAMABAD: Federal Board of Revenue (FBR) has explained benefits of filing annual income tax returns for tax year 2019 by due date i.e. September 30, 2019.

The FBR in its ongoing campaign for encouraging people to file their income tax returns by due date highlighted advantages of filing by due date and also pointed out disadvantages of non-compliance.

The FBR said that for not filing the return by due date the person/company will be charged withholding tax at double rates; FBR will assess the applicable tax without serving any notice; legal action will be taken resulting into imprisonment of one to three years; fine will be charged on late submission of income tax return.

By filing the income tax returns by due date i.e. September 30, a person/company shall be enlisted to Active Taxpayers List (ATL). The following are the benefits of ATL enlistment:

— Almost half of the withholding tax as compared with the inactive taxpayers

— 5.5 percent tax on imports (raw material)

— 6 percent on imports (commercial)

— 15 percent tax on dividends

— 10 percent tax on bank and saving scheme profit worth up to Rs0.5 million and 15 percent on above Rs0.5 million

— 4.5 percent tax on sale of goods by persons except companies

— 10 percent tax on provision of services by persons except companies

— 7.5 percent tax on contracts executed by person except companies

— 15 percent tax on prize money of prize bonds

— 12 percent tax on commission

— Annual token fee of vehicles from Rs800 to Rs10,000

— Withholding tax on vehicle registration from Rs7,500 to Rs250,000

— No tax on cash withdrawal of more than Rs50,000 from banks

— No tax on bank transactions (cross cheque, pay order, demand draft etc.)

— One percent tax on purchase of property

— 10 percent tax on sale by auction

— Tax on mobile phone import from Rs70 to Rs200

— 10 percent tax deduction for payment against advertisement to non-resident person.

The FBR also highlighted drawback in shape of double rate of tax on following transactions in case of not filing return by due date:

— Almost double tax rate

— 11 percent tax on imports (raw material)

— 12 percent on imports (commercial)

— 30 percent tax on dividends

— 20 percent tax on bank and saving scheme profit worth up to Rs0.5 million and 30 percent on above Rs0.5 million

— 9 percent tax on sale of goods by persons except companies

— 20 percent tax on provision of services by persons except companies

— 15 percent tax on contracts executed by person except companies

— 30 percent tax on prize money of prize bonds

— 24 percent tax on commission

— Annual token fee of vehicles from Rs1600 to Rs20,000

— Withholding tax on vehicle registration from Rs15,000 to Rs500,000

— 0.6 percent tax on cash withdrawal of more than Rs50,000 from banks

— 0.6 percent tax on bank transactions (cross cheque, pay order, demand draft etc.)

— Two percent tax on purchase of property

— 20 percent tax on sale by auction

— Tax on mobile phone import from Rs140 to Rs400

— 20 percent tax deduction for payment against advertisement to non-resident person.

Leave a Reply

You have to agree to the comment policy.