ISLAMABAD: Pakistan Tax Bar Association (PTBA) has demanded the tax authorities to extend the date for filing income tax returns for two months considering resurgence of coronavirus, calculation errors on IRIS portal and newly launched simple return form for small manufacturers.
In a letter sent to FBR Chairman, the PTBA sought extension for filing of income tax returns for tax year 2020.
It is pertinent to mention here that the FBR had already extended the date from September 30, 2020 to December 08, 2020.
The PTBA, the representative of all tax bars in the country, apprised the FBR chairman that the second wave of COVID-19 had already emerged and reportedly it was more dangerous than the first wave.
The tax bar said that several areas of the country were under lockdown/smart lockdown and micro lockdown due to the latest situation.
Besides, the FBR has also instructed its field offices to reduce the staff strength to half to prevent the spread of the pandemic.
“It is worth mentioning here that normal life and business activities are not going on due to the COVID situation which can be evaluated from the fact that even the government of India has further extended time for filing of return till January 31, 2021 from the original due date i.e. July 31, 2020,” the PTBA said, adding that timely filing of returns of income for tax year 2020, in this situation, is not possible.
Apart from the COVID situation, the PTBA also highlighted the situation of wrong calculation of minimum tax on the IRIS portal at the time of filing income tax return. “Moreover, the other issues like tax calculation of Behbood Saving Certificates, profits etc. is also required to be deployed correctly in the system.”
Previously, the PTBA on November 13, 2020 communicated with the FBR on such issues. The tax bar said that the issues pertaining to calculation of minimum tax liability by the system are persistent and not resolved.
The PTBA further pointed out the newly introduced single page income tax return form for individuals and Association of Persons (AOPs) having turnover less than 50 million through SRO 1261(I)/2020. “It is not understandable that the manufacturers having less than 50 million turnover, can file their returns within available time left i.e. 12 days which is humanly impossible.”
Considering these extraordinary circumstances due to COVID, calculation errors on IRIS and newly introduced income tax return form, the PTBA demanded the FBR to extend the last date for filing the income tax returns for further 60 days or up to January 31, 2021.
