Tax incentive package: two-month extension granted

The government Friday granted a two-month extension in last date for filing of tax returns under the Prime Minister''s incentive package from February 28 to April 30, 2014 to attract maximum persons, who intends to avail of the scheme. The FBR has issued Income Tax Circular 1 of 2014, here on Friday. According to a statement of the Finance Ministry, the Prime Minister of Pakistan had announced on November 28, 2013 a package for promoting tax culture, investment in industry and revival of economy.
The package included immunity from audit, default surcharge and penalty for NTN holders who did not file some or all income tax returns for the last five years provided they file their missing income tax returns and pay a minimum of Rs 20,000 tax per year. Similar immunity from audit, default surcharge and penalty was extended to non-NTN holders as on 28-11-2013, having taxable income, provided they pay tax at a minimum of Rs 25,000 per year, and file returns for the last five years. Such return filers will enjoy immunity from audit also for equal number of subsequent tax years for which they have filed returns for past years.
The last date for filing of returns under this package was February 28, 2014. However, considering the encouraging response to the Prime Minister''s Package and the request of the tax bar associations, trade bodies and business community that a substantial number of persons still wish to avail the benefits of the package, the federal government has decided to extend the last date for filing of returns under the scheme from February 28, 2014 to April 30, 2014.
Following is the text of the Income Tax Circular 1 of 2014 issued here on Friday: In exercise of powers conferred under Section 214A of the Income Tax Ordinance, 2001, the Federal Board of Revenue is pleased to condone the delay and extend the date of filing of returns given in the Clause (87) and (88) of Part-IV of the Second Schedule to Income Tax Ordinance, 2001 from 28th February, 2014 to 30th April, 2014, the circular added.