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Section 165A of Income Tax Ordinance, 2001 has made it mandatory for banks to provide details of cash deposits and cash withdrawals to the tax authorities.
165A. Furnishing of information by banks.— (1) Notwithstanding anything contained in any law for the time being in force including but not limited to the Banking Companies Ordinance, 1962 (LVII of 1962), the Protection of Economic Reforms Act, 1992 (XII of 1992), the Foreign Exchange Regulation Act, 1947 (VII of 1947) and the regulations made under the State Bank of Pakistan Act, 1956 (XXXIII of 1956), if any, on the subject every banking company shall make arrangements to provide to the Board in the prescribed form and manner,—
(a) a list of persons containing particulars of cash withdrawals exceeding fifty thousand Rupees in a day and tax deductions thereon, aggregating to Rupees one million or more during each preceding calendar month.”;
(b) a list containing particulars of deposits aggregating rupees ten million or more made during the preceding calendar month;
(c) a list of payments made by any person against bills raised in respect of a credit card issued to that person, aggregating to rupees two hundred thousand or more during the preceding calendar month;
“(d) a list of persons receiving profit on debt and tax deductions thereon during preceding financial year.”
(2) Each banking company shall also make arrangements to nominate a senior officer at the head office to coordinate with the Board for provision of any information and documents in addition to those listed in sub-section (1), as may be required by the Board.
(3) The banking companies and their officers shall not be liable to any civil, criminal or disciplinary proceedings against them for furnishing information required under this Ordinance.
(4) Subject to section 216, all information received under this section shall be used only for tax purposes and kept confidential. (Disclaimer: The text of above section is only for information. Team PkRevenue.com makes all efforts to provide the correct version of the text. However, the team PkRevenue.com is not responsible for any error or omission.)
ISLAMABAD: The Federal Board of Revenue (FBR) has issued instructions regarding promotions of officers of Inland Revenue Service (IRS) and Pakistan Customs Service (PCS).
165. Statements.— (1) Every person collecting tax under Division II of this Part or Chapter XII or the Tenth Schedule or deducting tax from a payment under Division III of this Part or Chapter XII or the Tenth Schedule shall, furnish to the Commissioner a quarterly statement in the prescribed form setting out—
(a) the name, Computerized National Identity Card Number, National Tax Number and address of each person from whom tax has been collected under Division II of this Part or Chapter XII or the Tenth Schedule or to whom payments have been made from which tax has been deducted under Division III of this Part or Chapter XII or the Tenth Schedule in each quarter
(b) the total amount of payments made to a person from which tax has been deducted under Division III of this Part or Chapter XII or the Tenth Schedule in each quarter
(c) the total amount of tax collected from a person under Division II of this Part or Chapter XII or the Tenth Schedule or deducted from payments made to a person under Division III of this Part or Chapter XII or the Tenth Schedule in each quarter; and
(d) such other particulars as may be prescribed:
Provided that every person as provided in sub-section (1) shall be required to file withholding statement even where no withholding tax is collected or deducted during the period:
“Provided further that this section shall not apply where information required under sub-section (1) has been furnished under section 165A.”;
Explanation.— For the removal of doubt, it is clarified that this sub-section overrides all conflicting provisions contained in the Protection of Economic Reforms Act, 1992 (XII of 1992), the Banking Companies Ordinance, 1962 (LVII of 1962), the Foreign Exchange Regulation Act, 1947 (VII of 1947) and the regulations made under the State Bank of Pakistan Act, 1956 (XXXIII of 1956), if any, on the subject, in so far as divulgence of information under section 165 is concerned.
(1A) Every person involved or engaged in economic transactions as prescribed by the Board shall furnish to the Commissioner a quarterly statement in the prescribed form and manner. ”;and
(2) Every prescribed person collecting tax under Division II of this Part or Chapter Xll or the Tenth Schedule or deducting tax under Division III of this
Part of Chapter Xll or the Tenth Schedule shall furnish statements under sub-section (l) or (1A) as per the following schedule, namely:-
(a) in respect of quarter ending on the 31st day of March, on or before the 20th day of April;
(b) in respect of quarter year ending on the 30th day of June, on or before the 20th day of July;
(c) in respect of quarter ending on the 30th day of September, on or before the 20th day of October; and
(d) in respect of quarter ending on or before the 31st day of December, on or before the 20th day of January.
(2A) Any person who, having furnished statement under sub-section (1) or sub-section (2), discovers any omission or wrong statement therein, may file a revised statement within sixty days of filing of statement under sub-section (1) or sub-section (2), as the case may be.
(2B) Notwithstanding anything contained in this section, the Commissioner as he deems lit may by notice in writing require any person, collecting or deducting tax under this Ordinance, to furnish a statement for any period specified in the notice within such period of time as may be specified in the notice.
(3) Board may prescribe a statement requiring any person to furnish information in respect of any transactions in the prescribed form and verified in the prescribed manner.
(4) A person required to furnish a statement under sub-section (1), may apply in writing, to the Commissioner for an extension of time to furnish the statement after the due date and the Commissioner if satisfied that a reasonable cause exists for non-furnishing of the statement by the due date may, by an order in writing, grant the applicant an extension of time to furnish the statement.
(5) The Board may make rules relating to electronic furnishing of statements under this section including,-
(a) mandatory electronic filing of statements; and
(b) determination of eligibility of the data of such statements and e-intermediaries, etc.
(6) Every person deducting tax from payment under section 149 shall furnish to the Commissioner an annual statement in the prescribed form and manner.
(7) Every prescribed person collecting tax under Division II of this Part, Chapter XII or the Tenth Schedule or deducting tax from a payment under Division III of this Part, Chapter XII or the Tenth Schedule shall, e-file to the Commissioner an annual statement for the relevant tax year within thirty days of the end of tax year in addition to statement to be filed under sub-section (6) of this section.
(8) Every prescribed person collecting tax under Division II of this Part or Chapter XII, the Tenth Schedule or deducting tax from a payment under Division III of this Part, Chapter XII or the Tenth Schedule shall also e-file to the Commissioner a statement in the prescribed form reconciling the amounts mentioned in annual statement filed under sub-section (7) with the amounts declared in the return, audited accounts or financial statements by the due date of filing of return of income as provided under section 118 of the Ordinance.
(Disclaimer: The text of the above section is only for information. Team PkRevenue.com makes all efforts to provide the correct version of the text. However, the team PkRevenue.com is not responsible for any error or omission.)
164. Certificate of collection or deduction of tax.—(1) Every person collecting tax under Division II of this Part or deducting tax from a payment under Division III of this Part or deducting or collecting tax under Chapter XII shall, at the time of collection or deduction of the tax, furnish to the person from whom the tax has been collected or to whom the payment from which tax has been deducted has been made, copies of the challan of payment or any other equivalent document along with a certificate setting out the amount of tax collected or deducted and such other particulars as may be prescribed.
(2) A person required to furnish a return of taxable income for a tax year shall attach to the return copies of the challan of payment on the basis of which a certificate is provided to the person under this section in respect of tax collected or deducted in that year.
(Disclaimer: The text of the above section is only for information. Team PkRevenue.com makes all efforts to provide the correct version of the text. However, the team PkRevenue.com is not responsible for any error or omission.)
Section 162 of Income Tax Ordinance, 2001 has empowered the commissioner Inland Revenue to recover tax from withholding agents, who failed to deduct or collect tax.
162. Recovery of tax from the person from whom tax was not collected or deducted.— (1) Where a person fails to collect tax as required under Division II of this Part or Chapter XII or deduct tax from a payment as required under Division III of this Part or Chapter XII, the Commissioner may pass an order to that effect and recover the amount not collected or deducted from the person from whom the tax should have been collected or to whom the payment was made.
(2) The recovery of tax under sub-section (1) does not absolve the person who failed to deduct tax as required under Division III of this Part or Chapter XII from any other legal action in relation to the failure, or from a charge of default surcharge or the disallowance of a deduction for the expense to which the failure relates, as provided for under this Ordinance.
(Disclaimer: The text of above section is only for information. Team PkRevenue.com makes all efforts to provide the correct version of the text. However, the team PkRevenue.com is not responsible for any error or omission.)
ISLAMABAD: Dr. Muhammad Ashfaq Ahmed, Chairman, Federal Board of Revenue (FBR), has advised taxpayers to file annual income tax returns timely.
In the newsletter for July – August, the chairman said that timely uploading of Income Tax Form this year is appreciable activity and must continue in future as well. The taxpayers’ would optimistically, take benefit of it this year and would file their returns timely.
The FBR has uploaded the Income Tax Return Forms for Tax Year-2021. Separate Return Forms for Salaried, Association of Persons and Business Individuals have been uploaded.
The Income Tax Returns can be filed through web portal and Tax Asaan application.
The taxpayers are provided guidance on filling all the required particulars in the form. The Income Tax Returns can be filed online through smart phones by installing the Tax Aasaan application from Google play store. In this regard, a media campaign would also be launched for awareness and education purposes.
The taxpayers can file their Income Tax Returns till September 30, 2021.
The FBR chairman said that the revenue body starts the fiscal year with laurels of 23 per cent growth by collecting Rs850 billion during July and August 2021.
This historical growth coupled with reforms, enforcement and compliance strategy would further take the revenues to the optimum level. There is no doubt that governments’
policies for economic growth and revival are bearing fruit. For broad spectrum national economic growth, curbing tax evasion and broadening the base by establishing linkages with the provincial governments, is imperative.
That is why, provincial governments have been offered proactive and technical collaboration especially in the agriculture sector, as many declare their agriculture income in federal ITRs.
The launching of, Single Identifier Number for all domestic taxes which is linked with the CNIC, and Alternate Delivery Channel (ADC) by which any federal tax or duty may be paid without physical visit of the bank shows the enduring commitment of FBR for ‘ease of doing businesses’.
It is heartening to note that scheme for new Export Facilitation Scheme 2021 has been approved by the Government and adopted by the parliament vide the Finance Act 2021.
The issuance of rules would impact certainly in reducing the cost and create the ease of doing business and improve compliance.
Be it the international cooperation for exchange of technical experiences or creating friendly environment with the business communities, FBR has always welcomed all stakeholders including the business chambers as vital players.
Member Inland Revenue (Policy) assisted by Chief IR Policy informed the Chairman that so far 1321 persons have registered themselves through the online system of FBR in 2125 projects.
Out of these registered projects, 1775 are new projects whereas 350 are existing projects. The total declared investment made in these registered projects comes to Rs493 Billion.
PM’s Construction Package was introduced through Tax Laws (Amendment) Ordinance, 2020 on 19th April 2020. The salient features of the package include fixed tax for builders and developers, immunity from probes, and concessions from withholding of taxes.
FBR has provided all the required facilitation to the beneficiaries of the package which includes the establishment of a dedicated web page, a dedicated email to address inquiries, and an online step-by-step guide for the builders and developers.
Besides, a comprehensive set of FAQs for potential buyers and investors was developed which is available on the FBR website. Moreover, wide publicity through media campaigns was also done to maximize the gains of this relief package.
Chairman FBR directed that ease of doing business must be ensured to the registered projects under the PM’s Package for Construction Sector. He further desired that regular updates on the progress be communicated through media on weekly basis.
In this regard, the FBR issued Circular No. 6 of 2022 for relaxing in the filing of declaration under Asset Declaration Ordinance, 2019.
The Asset Declaration Ordinance, 2019 was promulgated on May 14, 2019, for payment of tax and declaration of corresponding assets by June 30, 2019. The due date was extended till July 03, 2019.
The FBR received various references from citizen taxpayers whereby it has been conveyed that owing to certain technological impediments, many citizen taxpayers/persons intending to avail the benefit of the Ordinance deposited due tax but could not file their declarations of assets by the due date i.e. July 03, 2019.
Taking cognizing of the hardship caused and to facilitate the aggrieved citizen taxpayers, FBR has decided to allow the filing of declarations for all those citizen taxpayers/persons who deposited tax under the Ordinance within the due date i.e. July 03, 2019, but could not file their declarations due to any reason.
“The system has been enabled for the purpose and all taxpayers can now file their declarations between September 10, 2021, till September 25, 2021.”
The FBR said that this is a special dispensation granted under Section 7 of the Federal Board of Revenue Act, 2007.
