ISLAMABAD: The filing of annual income tax return has been made mandatory for taxpayers falling under Final Tax Regime (FTR).
The Finance Bill, 2020 has proposed amendment to Section 114 of Income Tax Ordinance, 2001.
A new clause (ae) has been inserted to Section 114 to make it mandatory for persons falling under FTR to file annual income tax returns.
After proposed amendment the clause a of Section 114 shall be read as:
(Note amendment in red)
114. Return of income. — (1) Subject to this Ordinance, the following persons are required to furnish a return of income for a tax year, namely:–
(a) every company;
(ab) every person (other than a company) whose taxable income for the year exceeds the maximum amount that is not chargeable to tax under this Ordinance for the year; or
(ac) any non-profit organization as defined in clause (36) of section 2;
(ad) any welfare institution approved under clause (58) of Part I of the Second Schedule;
(ae) every person whose income for the year is subject to final taxation under any provision of this Ordinance;