Tag: income tax return

KARACHI: The Federal Board of Revenue (FBR) has launched a campaign to ensure the taxpayers file their annual return of income for tax year 2022 by due date.

The FBR sent emails to registered taxpayers to comply with the mandatory requirement under Income Tax Ordinance, 2001.

“As a responsible citizen, you need to make sure that you file your Income Tax Return every year. This is a moral duty of every Pakistani, FBR prompts you to file your Income Tax Return for Tax Year 2022 today,” according to an email sent to a taxpayer.

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“Filing one’s Income Tax Return is mandatory legal obligation that we must endeavor in order to serve our country better. Let’s join hands for a prosperous and self-reliant Pakistan,” the FBR added.

The FBR reminded the taxpayer that the last date for filing Income Tax Returns for Tax Year 2022 is September 30, 2022.

According to the Income Tax Ordinance, 2001, the taxpayers included salaried persons, business individuals, association of persons (AOPs) and companies other than having account year July to June are required to file the return of income.

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The corporate entities having financial year July 01 to June 30 are required to file their income tax returns by December 31 every year.

The FBR through SRO 978(I)/2022 dated June 30, 2022 issued income tax return form for tax year 2022 giving statutory time to taxpayers for making compliance in filing of return.

Section 14 of Income Tax Ordinance, 2001, highlighted the categories of taxpayers, who are required to file their annual return of income and wealth statement.

According to Income Tax Ordinance, 2001, class of taxpayers are required to file return of income: — every company;— 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; — any non-profit organization as defined in clause (36) of section 2; — every person whose income for the year is subject to final taxation under any provision of this Ordinance; -Any person not covered by above clauses are also required to file return of income who,—

READ MORE: FBR issues paper return form for tax year 2022

(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;

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(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) is a resident person being an individual required to file foreign income and assets statement under section 116A.

ISLAMABAD: Pakistan on Friday opened the income tax return filing portal for tax year 2022. The return filing portal will remained available till September 30, 2022, as three months are statutory time period for filing income tax return.

Salaried persons, business individuals, Association of Persons (AOPs) and Companies having special account year will file the income tax return during this period.

The Federal Board of Revenue (FBR) issued SRO 978(I)/2022 to notify finalized income tax return form for the tax year 2022.

Following are the categories of taxpayers who required to file income tax return for tax year 2022 under Income Tax Ordinance, 2001:

Section 14 of Income Tax Ordinance, 2001 has explained in detail about persons whom the annual return filing is mandatory. According to the Section:

READ MORE: Who needs to file Tax Year 2022 return in Pakistan?

114. Return of income. — (1) Subject to this Ordinance, the following persons are required to furnish a return of income for a tax year, namely:–

(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;

(ae) every person whose income for the year is subject to final taxation under any provision of this Ordinance;

READ MORE: FBR issues draft return forms for tax year 2022

(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;

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(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) is a resident person being an individual required to file foreign income and assets statement under section 116A.

(c) persons or classes of persons notified by the Board with the approval of the Minister in-charge.

(1A) Every individual whose income under the head ‘Income from business’ exceeds rupees three hundred thousand but does not exceed rupees four hundred thousand in a tax year is also required to furnish return of income from the tax year.

ISLAMABAD: The Federal Board of Revenue (FBR) on Tuesday issued draft income tax return forms for tax year 2022.

The FBR issued SRO 820(I)/2022 to notify the draft income tax return forms. The forms included: electronic return for salaried individuals; electronic return for Association of Person (AOPs); electronic return for business individuals; and electronic return form for companies.

READ MORE: Tax return filing starts from July 01, 2022

The revenue body advised stakeholders to provide objections or suggestions to the draft return forms within seven days of publication of the draft form. “Objection or suggestions which may be received from any person in respect of the said draft, before the expiry of the aforesaid period, shall be taken into consideration by the FBR,” it added.

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The FBR may issue the finalized income tax return forms after the expiry of the stipulated time for draft return forms. The formal income tax return filing for tax year 2022 may be started from July 01, 2022.

The last date for filing income tax return tax year 2022 is September 30, 2022. All the taxpayers including salaried persons, business individuals, AOPs and companies having special tax year are required to file their annual income tax returns by September 30, 2022.

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However, corporate entities having their accounting year July to June will be required to file annual returns for income by December 30, 2022.

KARACHI: The filing of income tax return for tax year 2022 will start from July 01, 2022 and will remain continue till September 30, 2022.

As per Income Tax Ordinance, 2001, all the taxpayers, other than corporate entities, are required to file their annual income tax returns on or before September 30 every year.

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Last year the Federal Board of Revenue (FBR) opened the online portal for filing income tax returns on July 01 for filing return for tax year 2021. The FBR issued draft income tax return forms on June 11, 2021 and issued the finalized income tax return forms on July 01, 2021.

However, for current year the FBR had not issued draft income tax return forms till June 21, 2022.

The tax authorities issue draft form to take input from stakeholders to remove any anomaly or error/mistake.

Tax analysts said that statute allows taxpayers to have three-month period for filing annual income tax returns. The expiry date will be after three month from the issuance date of return forms.

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The Section 118 of Income Tax Ordinance, 2001 explains method for furnishing returns and other documents:

Section 118. Method of furnishing returns and other documents. —

(1) A return of income under section 114, a wealth statement under section 116 or a foreign income and assets statement under 116A, if applicable shall be furnished in the prescribed manner.

(2) A return of income under section 114 of a company shall be furnished —

(a) in the case of a company with a tax year ending any time between the first day of January and the thirtieth day of June, on or before the thirty-first day of December next following the end of the tax year to which the return relates; or

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(b) in any other case, on or before the thirtieth day of September next following the end of the tax year to which the return relates.

(2A) Where salary income for the tax year is five hundred thousand rupees or more, the taxpayer shall file return of income electronically in the prescribed form and it shall be accompanied by the proof of deduction or payment of tax and wealth statement as required under section 116 or a foreign income and assets statement under 116A, if applicable”:

“Provided that the Board may amend the condition specified in this sub-section or direct that the said condition shall not apply for a tax year.”;

(3) A return of income for any person (other than a company) shall be furnished as per the following schedule, namely:—

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(a) in the case of a return required to be filed through e-portal in the case of a salaried individual, on or before the 30th day of September next following the end of the tax year to which the statement or return relates; or

(b) in the case of a return of income for any person (other than a company), as described under clause (a), on or before the 30^th day of September next following the end of the tax year to which the return relates.

(4) A wealth statement shall be furnished by the due date specified in the notice requiring the person to furnish such statement or, where the person is required to furnish the wealth statement for a tax year under sub-section (2) of section 116, by the due date for furnishing the return of income for that year.

(5) A return required to be furnished by a notice issued under section 117 shall be furnished by the due date specified in the notice.

(6) Where a taxpayer is not borne on the National Tax Number Register and fails to file an application in the prescribed form and manner with the taxpayer’s return of income, such return shall not be treated as a return furnished under this section.