Restriction imposed on revising wealth statement

Jun 16

Budget 2020-2021, Taxation

Restriction imposed on revising wealth statement

KARACHI: Taxpayers have been barred from revising their wealth statement after expiry of five years. An amendment has been proposed to Income Tax Ordinance, 2001 through Finance Bill, 2020. According to interpretation of Finance Bill, 2020 by Deloitte Yousuf Adil Chartered Accountants, presently, revision of wealth statement is allowed without a requirement to obtain approval […]

by Mrs. Anjum Shahnawaz

Concealed income to be added under business income

Jun 16

Budget 2020-2021, Taxation

Concealed income to be added under business income

KARACHI: The Finance Bill 2020 has proposed amendment to laws pertaining to concealed income. Under the amendment the identified concealed income to be added under head of business income. The Finance Bill 2020 proposed amendment to Section 111 of Income Tax Ordinance, 2001. As per interpretation of Finance Bill, 2020, Deloitte Yousuf Adil Chartered Accountants […]

by Mrs. Anjum Shahnawaz

Details of transactions exempted from withholding tax

Jun 15

Budget 2020-2021, Taxation

Details of transactions exempted from withholding tax

ISLAMABAD: The Finance Bill, 2020 has proposed to withdraw withholding tax collection on nine different types of transactions under Income Tax Ordinance, 2001. According to budget commentary issued by PwC A F Ferguson, as part of reforms for ease of doing business, the government has proposed to withdraw following withholding tax provisions, which in government’s […]

by Mrs. Anjum Shahnawaz

Withholding statements to be filed on quarterly basis

Jun 15

Budget 2020-2021, Taxation

Withholding statements to be filed on quarterly basis

ISLAMABAD: Withholding agents shall require to file statement on quarterly basis from fiscal year starting July 01, 2020. The Finance Bill, 2020 proposed amendments to Section 165 of Income Tax Ordinance, 2001, under which the filing of withholding statement will be on quarterly basis against existing biannual basis. The requirement of filing withholding statement on […]

by Mrs. Anjum Shahnawaz

Jun 14

Budget 2020-2021, Taxation

Bank account details made mandatory for registered taxpayers

ISLAMABAD: All registered taxpayers are required to update their profile by providing details of bank accounts otherwise they will be excluded from Active Taxpayers List (ATL). The Finance Bill, 2020 has proposed amendment to insert Section 114A to the Income Tax Ordinance, 2001 to make the mandatory for all taxpayers to update their profile. According […]

by Mrs. Anjum Shahnawaz

Filing annual tax return made mandatory for FTR taxpayers

Jun 14

Budget 2020-2021, Taxation

Filing annual tax return made mandatory for FTR taxpayers

ISLAMABAD: The filing of annual income tax return has been made mandatory for taxpayers falling under Final Tax Regime (FTR). The Finance Bill, 2020 has proposed amendment to Section 114 of Income Tax Ordinance, 2001. A new clause (ae) has been inserted to Section 114 to make it mandatory for persons falling under FTR to […]

by Mrs. Anjum Shahnawaz

Tax amendments to property income introduced

Jun 14

Budget 2020-2021, Taxation

Tax amendments to property income introduced

ISLAMABAD: Finance Bill, 2020 has proposed many changes to taxation of property income for tax year 2021. According to commentary of PWC A. F. Ferguson Chartered Accountants, prior to amendments made through Finance Act, 2019, rental income of non-corporate persons was taxed on a presumptive basis not allowing any deductions and allowances. The Finance Act, […]

by Mrs. Anjum Shahnawaz

Process for automated scrutiny of income tax returns introduced

Jun 14

Budget 2020-2021, Taxation

Process for automated scrutiny of income tax returns introduced

ISLAMABAD: An automated scrutiny of income tax returns has been introduced to Income Tax Ordinance, 2001 through Finance Bill, 2020. For this purpose a new sub-section 2A has been inserted to Section 120 of Income Tax Ordinance, 2001 through the Finance Bill, 2020. The new sub-section 2A is as: “(2A) A return of income furnished […]

by Mrs. Anjum Shahnawaz

Resident ship owners to pay tonnage tax at US 75 cents

Jun 14

Budget 2020-2021, Ports and Shipping, Taxation

Resident ship owners to pay tonnage tax at US 75 cents

ISLAMABAD: A Pakistan resident ship owning company shall pay tonnage tax of an amount equivalent to US 75 cents per ton, as proposed through Finance Bill, 2020. A new clause (c) has been inserted in Section 7A of Income Tax Ordinance, 2001 through Finance Bill, 2001 to levy the tax on resident ship owning company. […]

by Mrs. Anjum Shahnawaz

Definition of IRIS inserted to Income Tax Ordinance, 2001

Jun 13

Budget 2020-2021, Taxation

Definition of IRIS inserted to Income Tax Ordinance, 2001

ISLAMABAD: The Finance Bill 2020 has proposed to insert definition of IRIS to income Tax Ordinance, 2001. The Finance Bill 2020 proposed many changes to Section 02 of the Ordinance. A new clause (30AC) to Section 2 of the Ordinance has been proposed to define IRIS “IRIS” means a web based computer programme for operation […]

by Mrs. Anjum Shahnawaz