Tag: Federal Board of Revenue

The Federal Board of Revenue is Pakistan’s apex tax agency, overseeing tax collection and policies. Pakistan Revenue is committed to providing timely updates on the Federal Board of Revenue to its readers.

FBR further extends sales tax return filing up to Nov 29

ISLAMABAD: Federal Board of Revenue (FBR) on Monday further extended the last date for filing sales tax return for the month of October up to November 29, 2019.

The FBR issued a notification for extension in date of submission of sales tax and federal excise return for the tax period of October 2019.

The FBR extended the date of submission of sales tax and federal excise return for the tax period of October, 2019 which was due on November 18, 2019 and extended up to November 25, 2019 and now further extended up to November 29, 2019.

It may be worth mentioning here that the last date for filing income tax returns for tax year 2019 is November 30, 2019. The extension in date for sales tax return filing will burden the tax practitioners and lawyers in return filing and taxpayers will have an excuse for demanding further extension in income tax return filing date.

November 25, 2019
Procedure to check active taxpayer status

ISLAMABAD: Appearance of a taxpayer in Active Taxpayers List (ATL) has become very important to avail benefit of reduced withholding income tax rate.

The ATL has become even more important after the inclusion of 10th Schedule to Income Tax Ordinance, 2001 through Finance Act, 2019 under which a person, who is not part of the ATL, is subject to 100 percent additional withholding tax.

According to Federal Board of Revenue (FBR) a taxpayer can check its active status in three different ways, which included:

Verification through Online Portal:

The ATL status check allows you to confirm your Active Taxpayer status.

Check Active Taxpayer status by SMS:

Check Individual’s Active Taxpayer status by SMS

Type “ATL (space) 13 digits Computerized National Identity Card (CNIC)” and send to 9966.

Check Active Taxpayer status of AOP and Company by SMS

Type “ATL (space) 7 digits National Tax Number (NTN)” and send to 9966.

To check active status by taxpayers of Azad Jammu and Kashmir by SMS

For Individual, type AJKATL (space) CNIC (without dashes). Send it to 9966.

Having NTN AJKATL (space) 11 digit NTN (without dashes). Send it to 9966.

The Active Tax Payer’s List of AJK is to be considered at par with the ATL (Income Tax) after amendment in the Income Tax Ordinance 2001 through Finance Act 2018.

Check Active Taxpayer status by downloading ATL from FBR official website.

DOWNLOAD LATEST ATL

The FBR said that a person appearing on the ATL will have following benefits:

Lower rates of tax deduction at source by banks on both profits and cash withdrawals

Reduction on withholding tax (tax already deducted from your income and gains) when registering and transferring motor vehicles

Lower rate of tax on buying and selling of property

Lower withholding tax rate on capital gains on sale of securities

Charges for tax on dividend will be lower

Lower rate of withholding tax on prize bond winnings

Allows you to claim back overpaid tax that has been withheld.

The FBR said that a person’s name will be part of the current ATL, if the Tax Return filed pertains to the Tax year of the relevant ATL.

For example, to be part of the ATL published on 1st March 2018, a person must have filed a Tax return for the Tax year 2017. Similarly, to be a part of the ATL published on 1st March 2019, a person must have filed a Tax Return for the Tax year 2018.

Restriction on including a person’s name on ATL, if the person has not filed Tax Return by the due date specified by Income tax authorities was introduced through Finance Act, 2018. For example, to be part of the ATL published on 1st March 2019, a person must file a Tax Return by the specified due date for the Tax year 2018.

However, through Finance Act, 2019 a person’s name can be part of ATL, even if the person has filed Tax Return after the due date specified by Income Tax authorities.

Furthermore, a surcharge for placement on ATL after due date of filing of Tax Return will be charged as under:

Company: Rs20,000

Association of Persons: Rs10,000

Individual: Rs1,000

A company or an AOP shall be included in the ATL, whose return is not to be filed due to incorporation or formation after 30th day of June relevant to the Tax year pertaining to the ATL.

Joint account holders as an entity shall be deemed to be part of ATL if any of the persons in the joint account have met the criteria of being included in the ATL.

Bank account held in the name of a minor shall be considered part of ATL if the parents, guardians of the minor or any person who has deposited money in minor’s account are deemed to have met the criteria of being included in the ATL.

The FBR said that the late filers of Income Tax Return for Tax Year 2018 can pay “Surcharge for ATL” as defined under section 182(A) of Income Tax Ordinance 2001 by clicking on Tax Payment Nature “Misc” head in the PSID.

The name of late filer will appear on the ATL only after the payment of surcharge, the FBR added.

November 25, 2019
FBR may not extend date for Tax Year 2019 return filing

KARACHI: The Federal Board of Revenue (FBR) has announced that there will be no further extensions for filing income tax returns for the tax year 2019. Taxpayers have six days left to submit their returns, with the final deadline set for November 30, 2019. According to sources within the FBR, this decision comes after multiple extensions were granted to facilitate compliance.
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November 24, 2019
FBR initiates action against concealed amounts in immovable property purchases

ISLAMABAD: Federal Board of Revenue (FBR) has initiated scrutiny of transactions of immovable properties, especially those where amnesty was availed, sources said.

The sources said that the FBR had initiated examination of transactions of sales and purchases of immovable properties during past years, in order to find out the quantum of amount concealed or not declared.

It is believed that huge amount of black money was parked in the real estate business. The buyers and sellers deliberately are not showing actual value of the properties in their agreements.

The sources said that the FBR obtained data under Section 236C, Section 236K and Section 236W of the Income Tax Ordinance, 2001.

They said that the investigation of property transactions would be of past five years.

The seller was required to pay advance tax under Section 236C. Similarly, buyer was required to pay withholding tax under Section 236K. Meanwhile, a buyer is allowed to pay 3 percent income tax to whiten money invested in property purchase. This amnesty was allowed to undisclosed amount that is invested to the extent of values notified by the FBR.

The sources said that the FBR headquarters had transferred thousands of cases of immovable properties to field formation of Inland Revenue.

The FBR collected information of buyers and sellers of immovable properties from property registrar offices of the provinces.

The field formations have been asked to identify those persons who had not filed their income tax returns and wealth statement.

The field formations would initially send those persons who made transactions but had not filed their returns.
Under Section 114 of the Income Tax Ordinance, 2001 the following owners of immovable properties are required to file income tax returns:
— owns immovable property with a land area of two hundred and fifty 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;

— owns immoveable property with a land area of five hundred square yards or more located in a rating area;

— owns a flat having covered area of two thousand square feet or more located in a rating area.

The FBR has also asked the field formations to investigate the payments made for property transactions. The sources said that the FBR collected withholding tax on the notified valuation tables for immovable properties.

The notified values of the FBR were very low when compared with the open market values. Therefore, there was ample chance of concealment in property transactions.

The field formation will ask banks to provide details of identified persons, especially the transactions recorded by the banks for the payment of properties.

November 24, 2019
Procedure to change personal tax details

ISLAMABAD: Federal Board of Revenue (FBR) has issued procedure to facilitate taxpayers in amending their personal details for filing tax returns and making transactions.

The FBR said that that a person can change their registration information recorded for filing Income Tax Return in three possible ways.

Changing information through Iris, a person can change/update information by logging into Iris.

Information can be updated by the person through Registration Form 181 (filed for modification) Income Tax, which included: Mobile number; Email; Personal/Residential Address; Business Address; Addition of Business Branches; Legal Representative u/s 87 of Income Tax Ordinance 2001; Bank Account.

Changing information through Federal Board of Revenue (FBR) helpline, a person can also change or update information through FBR helpline via phone or email.

Information can be updated through the helpline: Name; Date of Birth; Gender; Disability Status; Senior Citizen Status.

Changing Information by visiting Regional Tax Office (RTO)

The person will have to visit their relevant RTO For changes in registration regarding issues, included: Discontinuance of business; Jurisdiction for Income Tax Return assessment; Deregistration; Updating CNIC number; Updating Pakistan Origin Card (POC).

A person will have to take relevant documents to RTO in order to successfully change details regarding Income Tax Registration.

Officials in FBR said that the procedure can help taxpayers in updating their profile on the official web portal in order to make their return filing correct and accurate. This will also help taxpayers to avoid any hassles in future.

The return filing date for tax year 2019 is due on November 30, 2019.

November 23, 2019
Persons on ATL exempted from tax on cash withdrawal

ISLAMABAD: There is no withholding tax on cash withdrawal from banking system by a person, whose name is appeared on Active Taxpayers List (ATL), officials in Federal Board of Revenue (FBR) said on Friday.

Under Section 231A of Income Tax Ordinance, 2001 the withholding tax rate is 0.6 percent for a person making cash withdrawal above Rs50,000 from banking system.

However, this tax rate is only applicable on a person whose name is not appeared on ATL.

For appearing on the ATL a person is required to file his annual income tax returns by due date prescribed by the FBR. In other cases the person can file his return after due date after payment of penalty to ensure his name on the ATL.

The officials said that through Finance Supplementary (Second Amendment) Act, 2019 the government abolished 0.3 percent withholding tax rate on persons who were compliant in return filing.

The Section 231A related to cash withdrawal from a bank said that every banking company shall deduct tax at the rate specified in Division VI of Part IV of the First Schedule, if the payment for cash withdrawal, or the sum total of the payments for cash withdrawal in a day, exceeds fifty thousand rupees.

Explanation: For removal of doubt, it is clarified that the said fifty thousand rupees shall be aggregate withdrawals from all the bank accounts in a single day.

November 22, 2019
IR officers empowered to sell defaulters’ properties without attachment

KARACHI: Officers of Inland Revenue (IR) have been empowered to sell moveable or immovable properties of sales tax defaulters for recovery of arrears.

Section 48 of Sales Tax Act, 1990, which was updated up to June 30, 2019 by the Federal Board of Revenue (FBR) explained the powers of IR officers for recovery of arrears of tax.

Section 48: Recovery of arrears of tax

Where any amount of tax is due from any person, the officer of Inland Revenue may:-

(a) deduct the amount from any money owing to person from whom such amount is recoverable and which may be at the disposal or in the control of such officer or any officer of Income Tax, Customs or Central Excise Department;

(b) require by a notice in writing any person who holds or may subsequently hold any money for or on account of the person from whom tax may be recoverable to pay to such officer the amount specified in the notice;

(a) stop removal of any goods from the business premises of such person till such time the amount of tax is paid or recovered in full;

(ca) require by a notice in writing any person to stop clearance of imported goods or manufactured goods or attach bank accounts;

(b) seal the business premises till such time the amount of tax is paid or- recovered in full;

(c) attach and sell or sell without attachment any movable or immovable property of the registered person from whom tax is due; and

(f) recover such amount by attachment and sale of any moveable or- immovable property of the guarantor, person, company, bank or financial institution, where a guarantor or any other person, company, bank or financial institution fails to make payment under such guarantee, bond or instrument:

Provided that the Commissioner Inland Revenue or any officer of Inland Revenue shall not issue notice under this section or the rules made thereunder for recovery of any tax due from a taxpayer if the said taxpayer has filed an appeal under section 45B in respect of the order under which the tax sought to be recovered has become payable and the appeal has not been decided by the Commissioner (Appeals), subject to the condition that ten per cent of the amount of tax due has been paid by the taxpayer.

(1A) If any arrears of tax, default surcharge, penalty or any other amount which is adjudged or payable by any person and which cannot be recovered in the manner prescribed above, the Board or any officer authorized by the Board, may, write off the arrears in the manner as may be prescribed by the Board.

(2) For the purpose of recovery of tax, penalty or any other demand raised under this Act, the officer of Inland Revenue shall have the same powers which under the Code of Civil Procedure 1908 (V of 1908), a Civil Court has for the purpose of recovery of an amount due under a decree.

November 22, 2019
FBR transfers 11 senior IR officers of BS-20-21

ISLAMABAD: Federal Board of Revenue (FBR) on Thursday notified transfers and postings of 11 senior officers of Inland Revenue Service (IRS) in BS-20-21 with immediate effect and until further orders.

01. Dr. Ashfaq Ahmad Tunio (Inland Revenue Service/BS-21) has been transferred and posted as Member, Federal Board of Revenue (Hq), Islamabad from the post of Chief Commissioner, Regional Tax Office, Bahawalpur.

02. Syed Maroof Gilani (Inland Revenue Service/BS-21) has been transferred and posted as Chief Commissioner Inland Revenue Regional Tax Office, Bahawalpur from the post of Member, Federal Board of Revenue (Hq), Islamabad.

03. Qaiser Iqbal (Inland Revenue Service/BS-21) has been transferred and posted as Director General, Directorate General of Intelligence & Investigation (Inland Revenue), Islamabad from the post of Chief Commissioner, Regional Tax Office, Peshawar.

04. Syed Nadeem Hussain Rizvi (Inland Revenue Service/BS-21) has been transferred and posted as Member, (TPA) Federal Board of Revenue (Hq), Islamabad from the post of Chief Commissioner, Corporate Regional Tax Office, Lahore.

05. Asim Ahmad (Inland Revenue Service/BS-21) has been transferred and posted as Member, (IT) Federal Board of Revenue (Hq), Islamabad from the post of Director General, Directorate General of Intelligence & Investigation (Inland Revenue), Islamabad.

06. Sardar Ali Khawaja (Inland Revenue Service/BS-21) has been transferred and posted as Chief Commissioner Inland Revenue Regional Tax Office, Peshawar from the post of Chief Commissioner, Regional Tax Office, Sargodha.

7 Dr. Hamid Ateeq Sarwar (Inland Revenue Service/BS-21) is presently posted as Member, (Inland Revenue Policy Wing) Federal Board of Revenue (Hq), Islamabad, he is assigned the additional charge of the post of Member (FATE), Federal Board of Revenue (HQ), Islamabad in addition to his own duties, till the posting of a regular incumbent.

08. Ms. Amina Hassan (Inland Revenue Service/BS-21) has been transferred and posted as Chief Commissioner Inland Revenue Corporate Regional Tax Office, Lahore from the post of Director General, (Special Initiative) Federal Board of Revenue (Hq), Islamabad. The officer is also assigned the additional charge of the post of Director General (Special Initiative), FBR (HQ), Islamabad in addition to her duties, till the posting of a regular incumbent.

09. Abdul Hameed Memon (Inland Revenue Service/BS-21) has been transferred and posted as Director General, (Retail) Federal Board of Revenue (Hq), Islamabad from the post of Chief, (ST&FE) Federal Board of Revenue (Hq), Islamabad.

10. Muhammad Imtiaz (Inland Revenue Service/BS-20) has been transferred and posted as Chief Commissioner Inland Revenue (OPS) Regional Tax Office, Sargodha from the post of Chief Coordinator, Chief Coordinator Computer Wing (Income Tax), Islamabad.

11. Tariq Mustafa Khan (Inland Revenue Service/BS-20) has been transferred and posted as Chief Commissioner Inland Revenue (OPS) Regional Tax Office, Gujranwala from the post of Commissioner, Corporate Regional Tax Office, Karachi.

The FBR said that the officers who are drawing performance allowance prior to issuance of this notification shall continue to draw this allowance on the new place of posting.

November 21, 2019
FBR appoints appraising, valuation officers

ISLAMABAD: Federal Board of Revenue (FBR) has appointed appraising and valuation officers (BS-16) in the Customs Department.

A notification issued on Thursday, the FBR said that consequent upon the recommendations of Federal Public Service Commission (FPSC), Islamabad vide letter No.F.4-180/2018-R-FS-I, dated 17.10.2019 and having accepted the terms and conditions of appointment contained in the offer of appointment letter No.2(9)/2015-Cus-III, dated 22.10.2019, the following candidates are hereby appointed as Appraising/ Valuation Officer (BS-16) in the Customs Department and their services are placed at the disposal of Customs field formations mentioned against each:-

01. Raafeh Nasar Chattha, Model Customs Collectorate (Appraisement) Lahore.

02. Haris Bukhtiar Khan, Model Customs Collectorate (Appraisement) Lahore.

03. Muhammad Ibrar Ibrahim, Model Customs Collectorate (Appraisement) Lahore.

The FBR said that their inter-se-seniority will be maintained in order of merit assigned by Federal Public Service Commission (FPSC) and in accordance with the Civil Servants (Seniority) Rules, 1993.

Other terms and conditions of their appointment will be the same as already conveyed vide FBR letter dated October 22, 2019.

3. They are advised to join the concerned Customs field formation immediately but not later than 06.12.2019.

November 21, 2019
Non-ATL to pay 20 percent tax on property sale through auction

KARACHI: Properties sold through auction to attract 20 percent advance tax for persons not appearing on Active Taxpayers List (ATL).

According to Income Tax Ordinance, 2001 updated till June 30, 2019 the advance tax rate on sale of property through auction would be 10 percent for persons, who filed their income tax returns by due date or filed after paying penalty.

However, the tax rate has been prescribed at 20 percent for persons not appearing on the ATL.

A taxpayer will only qualify for the ATL when he files annual income tax returns by due date or filed after due date with paying penalty.

Through Finance Act, 2019 a new Tenth Schedule was introduced to Income Tax Ordinance, 2001 under which persons not appearing on ATL will pay 100 percent additional tax.

Section 236 A of the Ordinance explained the advance tax at the time of sale by auction:

Section 236A: Advance tax at the time of sale by auction

Sub-Section (1): Any person making sale by public auction or auction by a tender, of any property or goods (including property or goods confiscated or attached) either belonging to or not belonging to the Government, local Government, any authority, a company, a foreign association declared to be a company under sub-clause (vi) of clause (b) of sub-section (2) of section 80, or a foreign contractor or a consultant or a consortium or Collector of Customs or Commissioner of Inland Revenue or any other authority, shall collect advance tax, computed on the basis of sale price of such property and at the rate specified in Division VIII of Part IV of the First Schedule, from the person to whom such property or goods are being sold.

Sub-Section (2): The credit for the tax collected under sub-section (1) in that tax year shall, subject to the provisions of section 147, be given in computing the tax payable by the person purchasing such property in the relevant tax year or in the case of a taxpayer to whom section 98B or section 145 applies, the tax year, in which the “said date” as referred to in that section, falls or whichever is later.

Explanation.- For the purposes of this section, sale of any property includes the awarding of any lease to any person, including a lease of the right to collect tolls, fees or other levies, by whatever name called.

Sub-Section (3): Notwithstanding the provisions of sub-section (2), tax collected on a lease of the right to collect tolls shall be final tax.”

November 21, 2019