The Federal Board of Revenue (FBR) has made it mandatory for the withholding agents to mention the national tax number (NTN) or computerised national identity card (CNIC) number of the persons against whom the tax has been deducted to ensure compliance by banks.
Sources told Business Recorder here on Saturday that the provision would ensure submission of tax deductions made by withholding agents, including banks, in the withholding statements filed by the agents. The FBR has found that the banks have to provide CNIC/NTN of persons whose tax has been deducted in the relevant statements. The measures taken in the Finance Bill (2011-2012) will be instrumental in improving compliance by the banking sector.
Previously, it was mentioned in the income tax rules for submission of the NTN/CNIC of the payee in the statements filed by the withholding agents. Now, the condition has been made part of the income tax law for enforcement purposes. In this connection, the section 165 of the Income Tax Ordinance 2001 has been amended to specify that the statements shall be filed on monthly basis instead of quarterly basis. This would also improve compliance by the banking sector for submission of withholding statements on monthly basis.
Along with the names, now CNIC and NTN will also have to be given while filing the monthly statements. The statement shall now be electronically filed on every 15th of the month next following after the end of the month for which the statement is being filed. According to the FBR, for the national cause of broadening of tax base and utilisation of third-party databases, NTN and CNIC of eligible taxpayers are proposed to be provided expressly along with other particulars, in the withholding tax statements filed by withholding agents.
Comments
Comments are closed for this article.