KARACHI: A person owns a motor vehicles having engine capacity above 1000CC is mandatorily required to file income tax return for tax year 2019.
Officials of Federal Board of Revenue (FBR) said that any person had ownership of a motor vehicle having engine capacity above 1,000CC till June 30 was required to file annual return.
The condition to file income tax return has been imposed under Section 114 of Income Tax Ordinance, 2001.
The official said that the owner irrespective of buying or owning locally manufactured car or imported vehicle of such engine capacity was required to file income tax return and wealth statement.
The official further said that in case the person having ownership of the motor vehicle but had no source of income yet he was required to file income tax return.
By filing the return the person is required to declare the ownership of the motor vehicle and source of income for the purchase of the motor vehicle.
The official said that the FBR had gathered information regarding purchase of motor vehicles of past five years from motor registration authorities and manufacturers of locally assembled motor vehicles.
Besides, the FBR has also obtained details from customs authorities regarding imported vehicles of specified engine capacity that is required to file income tax returns.
The officials said that in case the person fails to furnish a return of income as required under section 114 within the due date, then such person shall pay a penalty equal to 0.1 percent of the tax payable in respect of that tax year for each day of default subject to a maximum penalty of 50 percent of the tax payable provided that if the penalty worked out as aforesaid is less than twenty thousand rupees or no tax is payable for that tax year such person shall pay a penalty of twenty thousand rupees:
Explanation.— For the purposes of this entry, it is declared that the expression “tax payable” means tax chargeable on the taxable income on the basis of assessment made or treated to have been made under section 120, 121, 122 or 122C.
The officials further said that in case the person fails to furnish wealth statement or wealth reconciliation statement. Such person shall pay a penalty of “0.1 percent of the taxable income per week or Rs.20,000 whichever is higher.”
The said that if the person:
(a) makes a false or misleading statement to an Inland Revenue Authority either in writing or orally or electronically including a statement in an application, certificate, declaration, notification, return, objection or other document including books of accounts made, prepared, given, filed or furnished under this Ordinance;
(b)furnishes or files a false or mis-leading information or document or statement to an Income Tax Authorityeither in writing or orallyor electronically;
(c) omits from a statement made or information furnished to an Income Tax Authority any matter or thing without which the statementor the information is false or misleading in a material particular.
Then such person shall pay a penalty of twenty five thousand rupees or 100 percent of the amount of tax shortfall whichever is higher:
Provided that in case of an assessment order deemed under section 120, no penalty shall be imposed to the extent of the tax shortfall occurring as a result of the taxpayer taking a reasonably arguable position on the application of this Ordinance to the taxpayers’ position.