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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.

  • Will FBR further extend return filing date to match record?

    Will FBR further extend return filing date to match record?

    KARACHI: Today i.e. December 31, 2019 is the last date for filing income tax returns for tax year 2019 and Federal Board of Revenue (FBR) may not able to reach 2.74 million returns of tax year 2018.

    The income tax return filing for tax year 2018 has increase to a new record level of 2.74 million by December 29, 2019, as shown in the Active Taxpayers List (ATL) issued on December 30, 2019.

    The FBR received 1.8 million tax returns for tax year 2019 by December 12, 2019 and it is apparently difficult for the revenue authorities to reach the record level in 18 days.

    Tax experts said that the FBR had set a target of 3.5 million returns for tax year 2019. To achieve this number the FBR has to extend the return filing date.

    The last date for filing of income tax return other than companies was September 30, 2019 since then the FBR granted four extensions to facilitate taxpayers.

    All the taxpayers including companies to file their returns by mid-night December 31, 2019.

    It is interesting to note that no tax body or business associations have asked the FBR to further extend the date beyond December 31, 2019.

    The income tax return filing reached to a new record high of 2.74 million as people making compliance to avoid 100 percent additional tax on persons not appearing on Active Taxpayers List (ATL).

    Sources in Federal Board of Revenue (FBR) attributed the record increase in return filing to the amendment to Income Tax Ordinance, 2001 through Finance Act, 2019.

    In the last budget 2019/2020 a new Tenth Schedule was inserted to Income Tax Ordinance, 2001 under which persons not appearing on ATL would liable to pay 100 percent more withholding tax on certain transactions.

    The ATL for tax year 2018 issued on March 01, 2019 in which 1.59 million names were appeared of those taxpayer, who filed their returns by due date.

    However, later the FBR granted extension in date for filing returns due to introduction of a tax amnesty scheme.

    The extension for filing income tax returns for tax year 2018 was granted up to August 09, 2019.

    The return filing up to August 09, 2019 for tax year 2018 jumped up to 2.5 million from 1.59 million returns, which were part of the first ATL issued March 01, 2019.

    The insertion of Tenth Schedule to Income Tax Ordinance, 2001 speed up the return filing by taxpayers in order to avoid higher tax rate on certain transactions.

    Previously, people filing their annual income tax returns after due date were not allowed to appear on the ATL. However, another provision was added to the main statute under which persons by paying penalty can include their name to ATL.

  • FBR suspends two officers of preventive Lahore

    FBR suspends two officers of preventive Lahore

    ISLAMABAD: Federal Board of Revenue (FBR) on Monday suspended two customs officers of Model Customs Collectorate (MCC) Preventive, Lahore with immediate effect.

    The FBR suspended the BS-16 officers including Muzaffar Hussain and Khalid Pervaiz Bhutta for a period of three months.

    The revenue body suspended the officers using powers under Rule 5(1) of the Government Servants (Efficiency & Discipline) Rules, 1973.

  • FBR’s field offices directed to update employees’ database

    FBR’s field offices directed to update employees’ database

    KARACHI – The Federal Board of Revenue (FBR) has issued a directive to all field offices of Pakistan Customs and Inland Revenue, emphasizing the urgent need to update employee data.

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  • Meeting discusses tax rates on immovable properties

    Meeting discusses tax rates on immovable properties

    ISLAMABAD: A meeting chaired by Dr. Abdul Hafeez Shaikh, adviser to the Prime Minister on Finance and Revenue, discussed proposals related to tax rates on properties, and realization of property valuation tables.

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  • IR offices observe extended working hours for collection

    IR offices observe extended working hours for collection

    ISLAMABAD: The offices of Inland Revenue will observe extended working hours on December 30 and 31, 2019 to facilitate collection of duty and taxes.

    Federal Board of Revenue (FBR) issued instructions on Monday directing all Large Taxpayers Units (LTUs) and Regional Tax Offices (RTOs) to observe extended working hours on December 30 and 31, 2019 to facilitate taxpayers in payment of duty and taxes.

    Therefore, the IR offices will remain open till 8:00 pm on Monday December 30, 2019 and till 10:00pm on Tuesday December 31, 2019 to facilitate taxpayers.

    The tax offices will also help taxpayers in filing their annual income tax returns and statements of assets.

  • Commissioner empowered to make assessment of concealed income

    Commissioner empowered to make assessment of concealed income

    KARACHI: A commissioner of Inland Revenue has been empowered to make assessment of income detected as concealed income by Federal Board of Revenue (FBR) or any other agency.

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  • FBR issues fresh jurisdictions of commissioner appeals

    FBR issues fresh jurisdictions of commissioner appeals

    ISLAMABAD: Federal Board of Revenue (FBR) has issued fresh jurisdictions of commissioner appeals.

    The FBR issued following jurisdiction order with effective from December 18, 2019.

    01. Commissioner Inland Revenue (Appeals-I), Karachi

    Jurisdiction
    All Cases of taxpayers falling under the jurisdiction of Large Taxpayers Unit Karachi with their names starting with alphabets from A to L along with their directors/partners.
    Further, he will also continue to exercise jurisdiction over the cases which are already specially assigned by the Board.

    02. Commissioner Inland Revenue (Appeals-II), Karachi

    Jurisdiction
    All cases of taxpayers falling under the jurisdiction of Large Taxpayers Unit Karachi with their names starting with alphabets from M to Z along with their directors/partners.
    Further, he will also continue to exercise jurisdiction over the cases which are already specially assigned by the Board.

    03. Commissioner Inland Revenue (Appeals-III), Karachi.
    Jurisdiction
    All cases of taxpayers falling under the jurisdiction of Corporate Regional Tax Office, Karachi.

    04. Commissioner Inland Revenue (Appeals-IV), Karachi
    Jurisdiction.
    All cases of taxpayers falling under the jurisdiction of Large Taxpayers Unit-II Karachi and Regional Tax Office-II, Karachi.

    05. Commissioner Inland Revenue (Appeals-V), Karachi.
    Jurisdiction.
    All cases of taxpayers falling under the jurisdiction of Regional Tax Office-III, Karachi.

    06. Commissioner Inland Revenue (Appeals), Hyderabad.
    Jurisdiction
    All cases of taxpayers falling under the jurisdiction of Regional Tax Office, Hyderabad.

    07. Commissioner Inland Revenue (Appeals), Sukkur.

    Jurisdiction
    All cases of taxpayers falling under the jurisdiction of Regional Tax Office, Sukkur.

    08. Commissioner Inland Revenue (Appeals), Quetta

    Jurisdiction
    All cases of taxpayers falling under the jurisdiction of Regional Tax Office, Quetta.

    09. Commissioner Inland Revenue (Appeals-I), Lahore.

    Jurisdiction.
    All cases of taxpayers falling under the jurisdiction of Zone-I, II, & AEOI of Large Taxpayers Unit, Lahore.

    10. Commissioner Inland Revenue (Appeals-II), Lahore.

    Jurisdiction.
    All cases of taxpayers falling under the jurisdiction of Zone-I, II, III, & IV of Corporate Regional Tax Office Lahore.

    11. Commissioner Inland Revenue (Appeals-III), Lahore.

    Jurisdiction.
    All cases of taxpayers falling under the jurisdiction of Zone-I, II, III of Regional Tax Office-II Lahore and RTO Sahiwal.

    12. Commissioner Inland Revenue (Appeals-IV), Lahore.

    Jurisdiction.
    All cases specially assigned by the Board time to time. Further, he will also continue to exercise jurisdiction over the cases which are already specially assigned by the Board.

    13. Commissioner Inland Revenue (Appeals-V), Lahore.

    Jurisdiction.
    All cases of taxpayers falling under the jurisdiction of Zone-III & IV of Large Taxpayers Unit Lahore.

    14. Commissioner Inland Revenue (Appeals-VI), Lahore

    Jurisdiction.
    All cases of taxpayers falling under the jurisdiction of Zone-V, VI & VII of Corporate Regional Tax Office Lahore.

    15. Commissioner Inland Revenue (Appeals-VII), Lahore.

    Jurisdiction.
    All cases of taxpayers falling under the jurisdiction of Zone-IV, V & WHT Zone of Regional Tax Office-II Lahore.

    16. Commissioner Inland Revenue (Appeals-I), Islamabad.

    Jurisdiction.
    All cases of taxpayers falling under the jurisdiction of Large Taxpayers Unit, Islamabad.

    17. Commissioner Inland Revenue (Appeals-II), Islamabad.

    Jurisdiction.
    All cases of taxpayers falling under the jurisdiction of Regional Tax Office, Islamabad and Regional Tax Office, Abbottabad.

    18. Commissioner Inland Revenue (Appeals-III), Islamabad.

    Jurisdiction.
    All cases of taxpayers falling under the jurisdiction of Regional Tax Office, Rawalpindi.

    19. Commissioner Inland Revenue (Appeals-IV), Islamabad.

    Jurisdiction.
    All cases specially assigned by the Board from time to time. Further, the CIR (Appeals-IV), Islamabad will also continue to exercise jurisdiction over the cases which are already specially assigned by the Board.

    20. Commissioner Inland Revenue (Appeals), Peshawar.

    Jurisdiction.
    All cases of taxpayers falling under the jurisdiction of Regional Tax Office, Peshawar.

    21. Commissioner Inland Revenue (Appeals), Multan.

    Jurisdiction.
    All cases of taxpayers falling under the jurisdiction of Regional Tax Office, Multan.

    22. Commissioner Inland Revenue (Appeals), Bahawalpur.

    Jurisdiction.
    All cases of taxpayers falling under the jurisdiction of Regional Tax Office, Bahawalpur.

    23. Commissioner Inland Revenue (Appeals), Gujranwala.

    Jurisdiction.
    All cases of taxpayers falling under the jurisdiction of Regional Tax Office, Gujranwala.

    24. Commissioner Inland Revenue (Appeals), Sialkot.

    Jurisdiction.
    All cases of taxpayers falling under the jurisdiction of Regional Tax Office, Sialkot.

    25. Commissioner Inland Revenue (Appeals-I). Faisalabad.

    Jurisdiction.
    All cases of taxpayers falling under the jurisdiction of Corporate Zone and Withholding Zone of Regional Tax Office Faisalabad.

    26. Commissioner Inland Revenue (Appeals-II), Faisalabad.

    Jurisdiction.
    All cases of taxpayers falling under the jurisdiction of Lyalpur Zone, Chenab Zone and Jhang Zone of Regional Tax Office Faisalabad.

    27. Commissioner Inland Revenue (Appeals), Sarghoda.

    Jurisdiction.
    All cases of taxpayers falling under the jurisdiction of Regional Tax Office, Sargodha.

  • Advance tax exempted on sale of immovable properties on holding period of above five years

    Advance tax exempted on sale of immovable properties on holding period of above five years

    KARACHI: The Federal Board of Revenue (FBR) has exempted the advance tax on sale of immovable property subject to the property is held for above five years.

    The officials of Federal Board of Revenue (FBR) said that advance tax under Sub-Section (1) of Section 236C of Income Tax Ordinance, 2001 would not be collected if the immovable property is held for a period exceeding five years.

    Under Sub Section 1 of Section 236C of the Income Tax Ordinance, 2001, Any person responsible for registering, recording or attesting transfer of any immovable property shall at the time of registering, recording or attesting the transfer shall collect from the seller or transferor advance tax at the rate specified in Division X of Part IV of the First Schedule:

    Explanation,—For removal of doubt, it is clarified that the person responsible for registering, recording or attesting transfer includes person responsible for registering, recording or attesting transfer for local authority, housing authority, housing society, co-operative society and registrar of properties.

    Provided that this sub-section shall not apply to a seller, being the dependant of a Shaheed belonging to Pakistan Armed Forces or a person who dies while in the service of the Pakistan Armed Forces or the service of Federal or Provincial Government, in respect of first sale of immovable property acquired from or allotted by the Federal Government or Provincial Government or any authority duly certified by the official allotment authority, and the property acquired or allotted is in recognition of or for services rendered by the Shaheed or the person who dies in service.

    (2) The Advance tax collected under sub-section (1) shall be adjustable

    Provided that where immovable property referred to in sub-section (1) is acquired and disposed of within the same tax year, the tax collected under this section shall be minimum tax.

    According to the ordinance the advance tax rate on sale of immovable properties is one percent of the gross amount of the consideration received. However, the tax rate shall be two percent if a person is not appearing on the Active Taxpayers List.

  • Return filing due date Dec 31 for all taxpayers

    Return filing due date Dec 31 for all taxpayers

    KARACHI: The income tax return filing date for tax year 2019 is December 31, 2019 for all types of taxpayers, which is unusual considering past years.

    The taxpayers including salaried individuals, business individuals, association of persons (AOPs), final taxpayers, companies falling under special tax year, corporate entities whose financial year ending June 30.

    The filing of annual returns by all the types of taxpayers is unusual as during past years the return filing date paused around December 15 to give ample space and time for corporate entities to file their returns.

    The filing date for salaried individuals, business individuals, AOPs and corporate entities having special tax year was September 30, 2019. While, the filing of annual return for tax year 2019 for companies is December 31, 2019.

    The FBR granted four extensions to taxpayers who were required to file their returns by September 30, 2019 and extended up to December 31, 2019.

    The return filing reached to 2.73 million for tax year 2018. The FBR received around 1.8 million returns for tax year 2019 by December 13, 2019. Therefore, FBR required around one million returns during December 13 to December 31 to reach the return filing number of last tax year.

    Sources in the FBR said that the return filing date would be extended further as filing huge number during remaining days was not possible. While FBR will announce return filing date for retailers under which a general relief may be granted to all the taxpayers.

    The FBR is eying around 3.5 million returns during tax year 2019. Therefore, in order to achieve this number the FBR will need to extend the filing date.

    The last date for filing the return for tax year was extended up to August 9, 2019. Therefore, the experts believe the FBR would continue to allow taxpayers to file their returns till the desired number is achieved.

  • FBR issues procedure for verification of sales tax invoice

    FBR issues procedure for verification of sales tax invoice

    KARACHI: Federal Board of Revenue (FBR) has issued procedure for verification of sales tax invoices prepared by Tier-1 retailers.

    According to FBR officials the following procedure shall be adopted for the verification of sales tax invoices.

    — Customer visits the counter to pay for his/her shopping.

    — Counter Boy Prepares the Invoice.

    — Invoice is forwarded to FBR system for invoice number.

    — Fiscal Invoice is generated and stored in FBR Sale Data Controller and returns a fiscal invoice number to POS.

    — Point of Sale (POS) generate the QR Code for fiscal invoice.

    — The receipt is printed out from the POS and physically delivered to the customer.

    — Customer receives the printed fiscal invoice and verify it from FBR System using any of proposed mode.

    The officials said that

    Tier -I retailer as defined under Section 2(43A) of Sales Tax Act 1990 are required to integrate their sales with the FBR.

    Tier-1 retailer means:-

    A retailer operating as a unit of a national or international chain of stores.

    A retailer operating in an air conditioned shopping mall plaza or centre, excluding kiosks.

    Retailer whose cumulative electricity bill during the immediately preceding twelve consecutive months exceeds rupees six hundred thousands.

    A wholesaler-cum-retailer, engaged in bulk import and supply of consumer goods on wholesale basis to the retailers as well as on retail basis to the general body of the consumers.

    A retailer whose shop measures one thousand square feet in the area or more.

    The officials said that the integrated supplier shall prominently display on each outlet a signboard bearing FBR’s official logo along with the text “Integrated with FBR” and also registration number of each POS verifiable through FBR verification services.

    Explaining the benefits of establishing integration with the FBR, the sources said that supplies of finished fabric and locally manufactured finished articles of textile and textile made ups and leather and artificial leather shall be entitled to reduced rate of 14 per cent subject to condition they have maintained 4 percent value addition during the last six months.

    Further, customers entitled to receive a cash back of up to 5 per cent of the tax involved in the manner and to the extent as may be prescribed.

    The penalty for non-compliance by the Tier-1 retailers, the sources said that under sub section (6) of section 8B of the Act, adjustable in put tax for whole of that tax period shall be reduced by 15 percent.

    Penalty as prescribed at serial No.(19) of the section 33 of the Act besides default surcharge under section 34 of the Act.