ISLAMABAD: The Federal Board of Revenue (FBR) for the first time will introduce the concept of pre-filled income tax returns for the salaried individuals, and also integrate with the National Database Registration Authority (Nadra) on real-time basis, so that the withholding agents should compulsorily mention the computerized national identity card numbers (CNICs) of the individuals, at the time of withholding of tax.
This was stated by Syed Nadeem Hussain Rizvi, spokesperson/member Taxpayers Audit, while addressing a press conference to publicize the "Go Live" of the Income Tax Returns for Tax Year 2020.
Chaudhry Muhammad Tariq, FBR Member Inland Revenue (IR) Policy and Asim Ahmad, FBR Member IT were also present.
The FBR expert team from the Pakistan Revenue Automation Limited (PRAL) gave practical demonstration for filing of simplified return form for the salaried class and retailers/shopkeepers having annual turnover up to Rs10 million.
The FBR Member Taxpayers Audit informed that in the first phase, the FBR would shortly issue pre-filled returns for the salaried class.
The FBR is equipped with the data of withholding and all information, in cases, where withholding of tax is deducted.
The FBR was only facing problems in cases of government departments where the salary goes through the Accountant General of Pakistan (AGPR). However, the FBR has now obtained online data of government salary from the AGPR. "We will issue the pre-filled returns very soon. When the taxpayer would open the return, they would see that all data is already filled for the convenience of the taxpayer," Syed Nadeem Hussain Rizvi added.
To a question, the FBR Member IT responded that the FBR would not share third-party data with the NADRA authorities for tax purposes.
The NADRA is a service provider and we cannot share data of taxpayers to the service provider under the provisions of the income tax laws.
He said that the FBR would not share data of third-party with the National Database Registration Authority (NADRA) as sharing of the data was barred under Income Tax Law.
"The FBR cannot share third party information with NADRA for analytical or any other purposes as the income tax law does not permit for sharing of taxpayers' information with anyone" FBR's Member Information Technology (IT) Asim Ahmed informed media.
He said that the NADRA could charge minimal fee amount as service provider after integration of its data with the FBR but exact fee would only be determined after signing of MoU.
On the pattern of sales tax, the FBR would be able to issue system based income tax refunds to the claimants, he added.
Muhammed Tarique, FBR Member Inland Revenue (IR) Policy informed that the single page form for the traders had been issued.
The basic data of trading accounts has been sought with minimum possible information of traders.
The FBR's Member Taxpayer Audit, Syed Nadeem Rizvi, and Member Inland Revenue (Policy) Mohammad Tariq and Member IT Asim Ahmed briefed journalists on Wednesday, and stated that the FBR introduced simplified tax return forms for salaried individuals and small retailers having annual turnover up to Rs10 million could avail this facility.
The FBR's Member IR (Policy) Mohammad Tariq said that the agreement signed with small traders did not bar the tax machinery for not getting wealth statement through income tax returns.
"With retailers' turnover up to 10 million, around 0.2 million retailers will get benefits from this introduced simplified tax returns form" he added.
The FBR has targeted to facilitate small traders having monthly turnover of around Rs833,000.
To a question, FBR Member stated that the agreement signed with the retailers does not specify any clause that the traders or retailers would not file their wealth statement. It is compulsory under the income tax law to file a wealth statement with the income tax return. If there was any such MoU with the traders, then income tax law was required to be amended for this purpose. However, the FBR has simplified the wealth statement for the traders or retailers.
"We have introduced one-page return form for salaried individuals," said Nadeem Rizvi, and added that it was the maximum efforts for achieving simplification that should be appreciated by everyone.
They also said that the FBR would launch awareness campaign through media, and chief commissioners would be directed to educate and facilitate taxpayers in their respective jurisdictions.
They said that only three percent return filers out of around 2.6 million had filed returns through manual forms, while all remaining 97 percent filers availed online filing facility last year.
The FBR's Member IR Policy said that they had run different benchmark to ascertain exact number of beneficiaries for availing simplified tax forms as first they envisaged benchmark of annual turnover of 100 million and found that it would benefit only 17,000 to 18,000 retailers.
Therefore, the FBR finally decided to provide maximum incentives to small traders so the turnover limit was slashed down to just 10 million that would now benefit around 175,000 to 200,000 retailers all over the country.
The FBR's Member IT said that efforts were made to upgrade the PRAL system, so it was hoped that online filing of tax returns would not be choked during last days of filing of returns. Even at the peak time of return filing, the FBR's system resources of 50 percent to 60 percent are consumed only.
"The FBR envisages 20 to 25 percent growth for receiving income tax returns this year against over 2.6 million last year" the FBR's Spokesman, Nadeem Rizvi, said but added in the same breath that there was no target but efforts would be made to maximise number of return filers.
The FBR also developed Asaan TaxAap and this could be downloaded on phone within next few days.
He said that the FBR was also considering allowing other private consultancy firms/companies for placing online facilities/apps for filing of income tax returns but they were analysing all security checks to ensure security of data.
When Business Recorder asked where the column for specifying rental income has been mentioned in the income tax return for the salaried individuals, FBR official said that the salaried person can file the rental income in the normal income tax return.
To a question on PRAL chief executive officer (CEO) appointment, FBR Member said that the final round of interviews have been conducted on Wednesday. The post was vacant for the last one year but the additional charge was given to the GM of the PRAL during this period.
Copyright Business Recorder, 2020
Comments
Comments are closed.