The Federal Board of Revenue (FBR) has granted a one-month extension for availing the audit scheme, pushing the deadline to February 28, 2019.
This extension, outlined in Income Tax Circular No. 01 / 2019 issued by the FBR on Friday, provides taxpayers with additional time to benefit from the audit scheme introduced under Section 214E of the Income Tax Ordinance, 2001.
The extension comes in response to a request made by the Pakistan Tax Bar Association (PTBA), which had urged the FBR to consider extending the deadline to March 31. The PTBA, in a letter addressed to the FBR chairman, highlighted the need for an extension, as the original deadline was set to expire on January 31.
Expressing gratitude for the FBR chairman’s prompt response to their request, the PTBA acknowledged the efforts made by the government to expedite the resolution of a substantial number of cases automatically selected under Section 214D of the Income Tax Ordinance, 2001. This was achieved through the introduction of an amendment via the insertion of new Section 214E in the Finance Supplementary (Amendment) Act, 2018 on September 18, 2018.
The PTBA further appreciated the government’s decision to waive penalties for individuals who have filed their income tax returns under the head of salary, whether with or without profit on debt or individual income. This incentive is expected to encourage more taxpayers to come forward and utilize the audit scheme.
The audit scheme, introduced as part of the Finance Supplementary (Amendment) Act, 2018, aims to facilitate taxpayers in resolving tax-related matters efficiently. It offers a mechanism for the expeditious disposal of cases selected under Section 214D. Taxpayers have the opportunity to file revised returns, and the scheme provides relief by waiving penalties in certain cases.
The PTBA highlighted the positive response from taxpayers, who have expressed their intention to take advantage of the audit scheme. These intentions were reportedly conveyed during sessions organized by member tax bars.
With the extended deadline now set for February 28, taxpayers are urged to utilize this additional time to benefit from the audit scheme and fulfill their tax obligations under the specified provisions. The extension aligns with the government’s commitment to providing taxpayers with reasonable opportunities to comply with tax regulations and take advantage of beneficial schemes aimed at streamlining tax processes.
