FBR to take strict action against individuals, companies fail to file annual returns

ISLAMABAD: Federal Board of Revenue (FBR) may take strict action against persons failed to file their annual returns for tax year 2019, besides imposing penal amount for late filing.

Sources in FBR on Tuesday said that individuals and corporate entities (having special tax year) have six more days to file their returns in order to avoid strict action and paying late filing amount.

The last date for filing income tax returns for tax year 2019 is December 16, 2016. The FBR granted third extension for filing returns on November 29, 2019.

The actual date for filing income tax returns for tax year 2019 was September 30, 2019 for salaried persons, business individuals, Association of Persons (AOPs) and corporate entities having special tax years.

The sources said that under Income Tax Ordinance, 2001 the defaulting taxpayers would face imprisonment up to three years.

However, persons or companies filing tax returns after the due date will be liable to pay penalty amount to ensure their names on the Active Taxpayers List (ATL).

The sources said that the income tax return filing for tax year 2018 had reached to a record high of 2.71 million by week ended November 30, 2019.

They said that a large number of people were still filing their returns for tax year 2018 in order to appear on ATL 2018, which would remain in vogue till February 29, 2020.

The new ATL for tax year 2019 will be published by the FBR on March 01, 2020.

The sources said that the appearance the name on ATL had become important after the introduction of 10th Schedule to the Income Tax Ordinance, 2001 through Finance Act, 2019.

They said that those persons having filed their returns but not on the ATL or those persons failed to file their returns are subject to 100 percent higher withholding tax rates.

Leave a Reply

You have to agree to the comment policy.