How to file returns and other documents has been resolved by the Federal Board of Revenue (FBR) to facilitate taxpayers of Pakistan.
In a recent announcement, the Federal Board of Revenue (FBR) has elucidated the provisions of Section 118 of the Income Tax Ordinance, 2001, shedding light on the method and deadlines for filing various financial documents, including income returns, wealth statements, and foreign income and assets statements. This clarification, issued in accordance with the updates made to the ordinance through the Finance Act, 2021, aims to provide taxpayers with a clear understanding of their obligations.
Understanding Section 118: Method of Furnishing Returns and Other Documents
Section 118 of the Income Tax Ordinance, 2001, outlines the procedural aspects of filing returns of income, wealth statements, and foreign income and assets statements. It emphasizes the necessity of adhering to the prescribed manner for filing these documents.
Returns for Companies (Section 2):
For companies with a tax year ending between January 1 and June 30, the return must be furnished on or before the following December 31.
For companies with a tax year ending at any other time, the deadline is September 30 of the following year.
Electronic Filing for Salary Income (Section 2A):
Taxpayers with salary income equal to or exceeding five hundred thousand rupees must file their return of income electronically in the prescribed form. This filing should include proof of tax deduction or payment and a wealth statement or foreign income and assets statement if applicable.
The Board reserves the right to amend this condition or direct that it does not apply for a specific tax year.
Returns for Individuals (Section 3):
Salaried individuals filing through the e-portal must submit their returns by September 30 following the end of the tax year.
Other individuals (non-companies) have the same deadline of September 30.
Wealth Statement (Section 4):
The wealth statement must be submitted by the due date specified in the notice requiring the person to furnish it. If the wealth statement is required under Section 116(2) for a tax year, it must be submitted by the due date for filing the return of income for that year.
Returns by Notice (Section 5):
If a return is required following a notice issued under Section 117, it must be submitted by the due date specified in the notice.
National Tax Number Register (Section 6):
Failure to be listed on the National Tax Number Register and not filing an application with the return of income renders the return as not furnished under Section 118.
This clarification is crucial for taxpayers to ensure compliance with deadlines and procedures stipulated by the Income Tax Ordinance, 2001. As with previous clarifications, PkRevenue.com has issued a disclaimer, emphasizing that while efforts are made to provide accurate information, the team is not responsible for any errors or omissions. It is advisable for taxpayers to stay informed and seek professional advice to meet their obligations under the Income Tax Ordinance.