Karachi, December 1, 2023 – In a significant development, provincial building control authorities are now mandated to collect a five percent advance tax before approving building construction plans, as per the updated Income Tax Rules, 2002 for the tax year 2024, issued by the Federal Board of Revenue (FBR).
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FBR Directs Stock Investors to Maintain Records for Verification in Tax Year 2024
Karachi, November 28, 2023 – The Federal Board of Revenue (FBR) has issued a directive to all investors in the Pakistan Stock Exchange (PSX) to maintain comprehensive records for the verification of liability discharge during the tax year 2024.
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Rules Notified for Computation of Capital Gain or Loss in Pakistan for Tax Year 2024
Karachi, November 27, 2023 – Rules have been notified for computing capital gain or loss in Pakistan during tax year 2024. The Federal Board of Revenue (FBR) has announced the updated Income Tax Rule, 2002 for the tax year 2024, specifying the methodology for computing capital gains or losses in Pakistan.
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FBR Releases Comprehensive List of Particulars for Depreciation Deduction in Tax Year 2024
Karachi, November 26, 2023 – The Federal Board of Revenue (FBR) has taken a significant step towards enhancing transparency and accuracy in tax reporting by issuing a detailed list of particulars required for claiming depreciation deduction during the tax year 2024.
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E-intermediary defined by Income Tax Rules
E-intermediary is explained as a person or a firm appointed on behalf of another person or a firm to get the job done.
The Income Tax Rules, 2002 updated up to September 08, 2020 issued by the Federal Board of Revenue (FBR) explained “e-intermediary” as a person registered as,-
(i) Chartered Accountant with the Institute of Chartered Accountants of Pakistan;
(ii) Cost and Management Accountant with the Institute of Cost and Management Accountants of Pakistan;
(iii) a legal practitioner entitled to practice in any Court in Pakistan;
(iv) a member of the Association of Chartered Certified Accountants, UK; or
(v) an Income Tax Practitioners, registered with Tax Bar affiliated with All Pakistan Tax Bar Association.
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Law prohibits arrest of women, minors for tax recovery
ISLAMABAD: Income tax law has prohibited tax officials from arresting any woman or a minor for recovery of tax default amount, officials at Federal Board of Revenue (FBR) said on Monday.
They said that Commissioner Inland Revenue, having authority to recover tax amount by using various options defined under the law, has been prohibited to order the arrest of a woman or any person who, in his opinion, is a minor or of unsound mind.
The officials said that Income Tax Rules, 2002 has explained in detailed about the powers of Commissioner of Inland Revenue related to recovery of outstanding tax money.
The commissioner has an authority to ask officer incharge of the civil person for detention of the defaulter in civil prison under Rule 186(1) of the Income Tax Rules, 2002.
Rule 187 explains detention in and release from prison.-
(1) Every person detained in the civil prison in execution of a notice may be so detained-
(a) where the notice is for a demand of an amount exceeding twenty five thousands, for a period of six months, and
(b) in any other case for a period of six weeks:
Provided that he shall be released from such detention-
(i) on the amount mentioned in the warrant for his detention being paid to the Officer-in-charge of the civil prison, or
(ii) on the request of the Commissioner who has issued the notice or of the Commissioner on any ground other than the grounds mentioned in rules 193(1) and 196:
Provided further that where he is to be released on the request of the Commissioner, he shall not be released without the order of the Commissioner.
(2) A defaulter released from detention under this rule shall not, merely by reason of his release, be discharged from his liability for the arrears; but he shall liable to be re-arrested under the notice in execution of which he was detained in the civil prison.
Rule 188. Release.-
(1) The Commissioner may order the release of a defaulter who has been arrested in execution of a notice upon being satisfied that he has disclosed the whole of his property and has placed it at the disposal of Commissioner and that he has not committed any act in bad faith.
(2) If the Commissioner has ground for believing the disclosure made by the defaulter under sub-rule (1) to have been untrue, he may order the re-arrest of the defaulter in execution of the notice but the period of his detention in the prison shall not in the aggregate exceed that authorized by rule 187.
Rule 189. Release on ground of illness.-
(1) At any time after a warrant for the arrest of a defaulter has been issued, the Commissioner may cancel it on ground of the serious illness of the defaulter.
(2) Where a defaulter has been arrested, the Commissioner may release him if, in the opinion of the Commissioner of Tax, he is not in a fit state of mind to be detained in the civil prison.
(3) Where a defaulter has been committed to the civil prison, he may be, released therefrom by the Commissioner on the ground of the existence of any infectious or contagious disease or on the ground of his suffering from any illness.
(4) A defaulter released under this rule may be re-arrested, but the period of his detention in the civil prison shall not in the aggregate exceed that authorized by rule 164.
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Appeals against tax orders to be filed electronically from January 01
ISLAMABAD: Federal Board of Revenue (FBR) on Thursday issued draft rules for filing appeals electronically from January 01, 2021.
The FBR issued SRO 1262(I)/2020 to propose amendments in Income Tax Rules, 2002.
According to the SRO the FBR proposed amendments to rule 70 to 70O.
The draft rules are as follow:
76. Appeal to the Commissioner Inland Revenue (Appeals) on web portal: An appeal under Section 127 of the Income Tax Ordinance, 2001 shall be filed, as prescribed on Iris web portal from January 01, 2021.
76A. Date of filing of appeal: The date of appeal shall be the date on which it was filed electronically.
76B. Documents to accompany appeal: (1) the appellant shall electronically attach documents along with appeal namely:
(a) the order appealed against;
(b) notice of demand; and
(c) proof of payment of appeal fee.
(d) any other supporting document(s).
(2) the appellant shall annex an electronic index showing the documents filed under this rule.
76C. Intimation of filing of appeal to the respondent: the appeal shall also be electronically transmitted to the respondent through Iris.
76D. Filing of affidavit regarding contrary facts: Where a fact, which cannot be borne out by or is contrary to the record, is alleged, it shall be stated clearly and concisely by a duly sworn affidavit and shall have to be filed electronically with appeal and shall be produced in original before the Commissioner (Appeals).
76E. Defective appeals etc. (1) Where an appeal is not filed electronically in the manner specified in these rules, an electronic notice shall be issued within three days requiring the appellant or his authorized representative, if any to bring the appeal in conformity with the rules, within the time limitation as specified in sub-section (5) of Section 127 of the Ordinance subject to just exception under sub-section (6) of the aforesaid section and the appeal so received shall not be deemed to have been filed unless the provisions of these rules have been fully complied with.
(2) Where the appellant or his authorized representative does not meet the requirement under sub-rule (1), the matter shall be decided by the Commissioner (Appeals) through appropriate orders.
76F. Power of attorney etc., by authorized representative: Where an authorized representative has been appointed or declared as defined in Section 172 of Ordinance, such representative shall electronically attach with the appeal, the document showing his authority and his/her acceptance thereof, which shall be signed and dated by the representative and shall also specify his capacity in which he/she is acting as such. Further, this shall be produced in original before the Commissioner (Appeals).
76G. Procedure for filing and disposal of stay application: (1) On receipt of say application electronically the official authorized in this behalf shall fix the application for hearing in the following manner, namely:
(a) For application received before 01:00PM on a working day, hearing shall be fixed on the next working day; and
(b) For applications received after 01:00PM on a working day, hearing shall be fixed on the day after the next working day.
(2) Stay applications shall be disposed by the Commissioner (Appeals) electronically within seven days of fixation.
76H. Date and place of hearing of appeal and stay applications: (1) The Commissioner (Appeals) shall issue notices electronically to both the parties to the appeal informing them about the date and place of hearing of appeal or the stay application as the case may be.
(2) The Commissioner Inland Revenue (Appeals) may, where deemed necessary, require the respondent department to submit para-wise comments electronically in response to the appellant’s electronic submissions, if any, on or before the date of hearing.
76I. Hearing of Appeal or stay application: (1) On the day fixed for hearing or any other day to which the hearing is adjourned the appellant shall be heard and the Commissioner (Appeals) shall then hear the respondent against the appeal or stay application and in that case the appellant shall have a right to replay.
(2) The Commissioner Inland Revenue (Appeals) may from time to time adjourn the hearing of the appeal.
76J. Notice to be issued electronically to both parties under Sub-Section (2) of Section 129: The Commissioner Inland Revenue (Appeals) shall issue notices electronically to both parties for providing them a reasonable opportunity to present their stance in case of increase in the amount of any assessment order or decrease in the amount of any refund.
76L. Reports: (1) The Commissioner Inland Revenue (Appeals) shall submit electronically a monthly performance report as prescribed on Iris web portal by the 5th of every month.
(2) Commissioner Inland Revenue (Appeals) shall submit the stay applications disposal report as prescribed on Iris web portal by the 5th and 20th day of every month.
76M. Uploading Manual Orders/Letters Received: The Commissioner Inland Revenue (Appeals) shall make it sure that orders/decisions received from the Tribunal or Higher Courts and all other documents which have been received manually from quarters other than the appellant, are immediately uploaded in Iris in soft form with the relevant case on web portal.
76N. Electronic Order: The order passed electronically on Iris web portal shall not require any seal or signature of the Commissioner (Appeals). The date of order shall be the date as mentioned on the order generated by the system.
76O. Explanation: (1) No case pertaining to the Tax Year 2014 onwards, shall be filed manually from January 01, 2021, and the cases already filed manually before the said date shall be processed as per the SRO 279(I)/2018 dated March 05, 2018. All such cases shall be finalized as per law but not later than June 30, 2021. If any case is left out or remanded back by the Tribunal or Higher Judiciary, from the cases processed earlier manually, the Commissioner (Appeals) shall process it electronically with the effect from July 01, 2021.
(2) The cases pertaining to periods prior to the Tax Year 2014 would be processed as per SRO 279(1)/2018 dated March 05, 2018.
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Procedure to get exemption certificate for imported goods
ISLAMABAD – The Federal Board of Revenue (FBR) has established a clear procedure for taxpayers to obtain exemption certificates for the exemption from advance income tax on imported goods.
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Phone SMS included as mode of service for tax notices
ISLAMABAD: Federal Board of Revenue (FBR) expanded the scope of service tax notices and included mobile phone SMS as valid service of documents.
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Banks provide statements of account holders to tax authorities
ISLAMABAD – Banks are obligated to furnish statements of deposits and withdrawals of account holders to the Federal Board of Revenue (FBR).
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