ISLAMABAD: Federal Board of Revenue (FBR) on Wednesday said that return filing is must for persons own immovable property above 500 square yards or 1000CC motor vehicles.
The FBR in a statement said that as per Income Tax Ordinance, 2001 all those individuals who owned 500 square yards or 1000CC motor vehicles are required to file annual income tax returns.
The FBR reminded persons falling within the requirement of the law to must file their returns for tax year 2019 by January 31, 2020.
The FBR extended the last date for return filing for tax year 2019 up to January 31, 2020. The FBR said that people should avail this opportunity in order to avoid harsh penal action.
As per Section 114 of Income Tax Ordinance, 2001 following class of persons or companies are required to file their annual income tax returns:
(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;
(b) any person not covered by clause (a), (ab), (ac) or (ad) who,—
(i) has been charged to tax in respect of any of the two preceding tax years;
(ii) claims a loss carried forward under this Ordinance for a tax year;
(iii) owns immovable property with a land area of five hundred square yards or more or owns any flat located in areas falling within the municipal limits existing immediately before the commencement of Local Government laws in the provinces; or areas in a Cantonment; or the Islamabad Capital Territory;
(iv) owns immoveable property with a land area of five hundred square yards or more located in a rating area;
(v) owns a flat having covered area of two thousand square feet or more located in a rating area;
(vi) owns a motor vehicle having engine capacity above 1000 CC;
(vii) has obtained National Tax Number; or
(viii) is the holder of commercial or industrial connection of electricity where the amount of annual bill exceeds rupees five hundred thousand;
(ix) is a resident person registered with any chamber of commerce and industry or any trade or business association or any market committee or any professional body including Pakistan Engineering Council, Pakistan Medical and Dental Council, Pakistan Bar Council or any Provincial Bar Council, Institute of Chartered Accountants of Pakistan or Institute of Cost and Management Accountants of Pakistan; or
(x) every resident person being an individual required to file foreign income and assets statement under section 116A.
