ISLAMABAD: Federal Board of Revenue (FBR) has recorded a 45 per cent growth in payment with income tax returns during fiscal year 2021-2022.
According to official data released by the FBR revealed that the tax collection with returns increased to Rs78.54 billion during fiscal year 2021-2022 when compared with Rs54.09 billion in the preceding fiscal year.
READ MORE: Thousands of fake transactions discovered in taxpayer profile; FTO orders probe
A major chunk under tax with returns came from payment made under Section 137 of Income Tax Ordinance, 2001. Taxpayers made payment to the tune of Rs75.22 billion during fiscal year 2021-2022 when compared with Rs52.62 billion in the preceding fiscal year.
The Section 137 of the Ordinance deals with the due date of payment of tax.
Following is the text of Section 137:
“Section 137: Due date for payment of tax
READ MORE: Pakistan Customs resolves classification of aluminum waste, scrap of auto parts
(1) The tax payable by a taxpayer on the taxable income of the taxpayer including the tax payable under section 113 or 113A for a tax year shall be due on the due date for furnishing the taxpayer’s return of income for that year.
(2) Where any tax is payable under an assessment order or an amended assessment order or any other order issued by the Commissioner under this Ordinance, a notice shall be served upon the taxpayer in the prescribed form specifying the amount payable and thereupon the sum so specified shall be paid within thirty days from the date of service of the notice:
Provided that the due date for payment of tax payable under sub- section (7) of section 147 shall be the date specified in sub-section (5) or sub-section (5A) or first proviso to sub-section (5B) of section 147.
(3) Nothing in sub-section (2) or (4) shall affect the operation of sub-section (1).
(4) Upon written application by a taxpayer, the Commissioner may, where good cause is shown, grant the taxpayer an extension of time for payment of tax due under sub-section (2) or allow the taxpayer to pay such tax in instalments of equal or varying amounts as the Commissioner may determine having regard to the circumstances of the case.
READ MORE: FBR plans achieving annual target through broadening tax base
(5) Where a taxpayer is permitted to pay tax by instalments and the taxpayer defaults in payment of any instalments, the whole balance of the tax outstanding shall become immediately payable.
(6) The grant of an extension of time to pay tax due or the grant of permission to pay tax due by instalments shall not preclude the liability for default surcharge arising under section 205 from the due date of the tax under sub-section (2).”
The FBR also received tax with returns to the tune of Rs1.4 billion during fiscal year 2021-2022 under the head of minimum tax related to Section 113 of the Ordinance. The revenue body collected only Rs7.4 million in the preceding fiscal year.
READ MORE: Pakistan’s revenue collection failure: Tax-to-GDP ratio remains single digit in 22 years
Small retailers paid Rs1.85 billion along with their returns during fiscal year 2021-2022 as compared with Rs1.44 billion in the preceding fiscal year.
An amount of Rs69 million was collected along with returns during fiscal year 2021-2022 at the time of audit closure under Section 214E of the Ordinance. The FBR collected Rs28 million in the preceding fiscal year under this head.