AGL 8.30 Increased By ▲ 0.44 (5.6%)
ANL 10.59 Increased By ▲ 0.24 (2.32%)
AVN 78.60 Increased By ▲ 0.70 (0.9%)
BOP 5.45 Increased By ▲ 0.06 (1.11%)
CNERGY 5.59 Increased By ▲ 0.58 (11.58%)
EFERT 80.25 Decreased By ▼ -0.55 (-0.68%)
EPCL 69.60 Increased By ▲ 1.50 (2.2%)
FCCL 15.30 Increased By ▲ 0.74 (5.08%)
FFL 6.53 Increased By ▲ 0.33 (5.32%)
FLYNG 7.18 Increased By ▲ 0.53 (7.97%)
GGGL 10.85 Increased By ▲ 0.27 (2.55%)
GGL 16.79 Increased By ▲ 0.38 (2.32%)
GTECH 8.14 Increased By ▲ 0.02 (0.25%)
HUMNL 7.04 Increased By ▲ 0.02 (0.28%)
KEL 2.99 Increased By ▲ 0.11 (3.82%)
LOTCHEM 30.77 Increased By ▲ 2.24 (7.85%)
MLCF 28.98 Increased By ▲ 2.03 (7.53%)
OGDC 82.75 Increased By ▲ 0.60 (0.73%)
PAEL 16.97 Increased By ▲ 0.32 (1.92%)
PIBTL 6.08 Increased By ▲ 0.24 (4.11%)
PRL 18.10 Increased By ▲ 1.35 (8.06%)
SILK 1.15 Increased By ▲ 0.05 (4.55%)
TELE 11.25 Increased By ▲ 0.28 (2.55%)
TPL 9.20 Decreased By ▼ -0.02 (-0.22%)
TPLP 19.88 Increased By ▲ 0.22 (1.12%)
TREET 26.46 Increased By ▲ 0.55 (2.12%)
TRG 94.60 Increased By ▲ 0.99 (1.06%)
UNITY 19.50 Increased By ▲ 0.50 (2.63%)
WAVES 14.34 Increased By ▲ 0.78 (5.75%)
WTL 1.30 Increased By ▲ 0.06 (4.84%)
BR100 4,187 Increased By 80.1 (1.95%)
BR30 15,474 Increased By 343.5 (2.27%)
KSE100 42,096 Increased By 670.9 (1.62%)
KSE30 15,883 Increased By 222.7 (1.42%)

ISLAMABAD: The government has decided to abolish the requirement of submitting or updating taxpayers’ profiles by the registered taxpayers, in the next federal budget (2021-22).

Reliable sources told Business Recorder, Monday that the information of the taxpayers’ profiles was already available with the FBR's in the form of registration data, income tax returns, and wealth statements.

This is an additional burden on the existing taxpayers to seek the same information through filing of taxpayers’ profiles.

Taking into account the viewpoint of stakeholders, the government has seriously realised the situation and extended the deadline for submission of such profiles by June 30, 2021, to abolish the said provision, in the next federal budget.

Sources said that the government had directed the Federal Board of Revenue for extension in the deadline up to June 30th, 2021, for updation of taxpayers profile under Section-114A of the Income Tax Ordinance, 2001.

The extension has been granted to avoid imposition of penalty/surcharge on the taxpayers, who would fail to submit or update the taxpayers’ profiles by June 30, 2021.

Legally the names of the non-compliant taxpayers are required to be removed from the Active Taxpayers List for non-submission of taxpayers’ profiles.

Presently, if a person fails to furnish or update a taxpayer’s profile within the due date or time period as extended by the board under Section 214A, such person shall not be included in the active taxpayers’ list for the latest tax year ending prior to the aforesaid due date or extended date.

Upon filing or updating the profile, such persons shall be allowed to be placed on the active taxpayers’ list upon payment of surcharge Rs20,000 in the case of a company, Rs10,000 in the case of an association of persons, and Rs1,000 in the case of an individual.

To avoid penalty/surcharge on the taxpayers, the government has directed the FBR to take two steps, ie, (i) extend the date for filing of profiles up to June 30, 2021, and (ii); abolish the said requirement through an amendment in the Income Tax Ordinance 2001 through the next Finance Bill.

Taxpayer’s profile contains information relevant to income regarding bank accounts, utility connections, business premises including all manufacturing, storage or retail outlets operated or leased by the taxpayer, types of businesses, and such other information as may be prescribed by the board.

The condition for submission of the taxpayers’ profiles covers certain categories of taxpayers, ie, persons applying for registration, persons deriving income chargeable to tax under the head, “income from business”; income subject to final taxation; non-profit organisations, and any trust or welfare institution.

Copyright Business Recorder, 2021

Comments

Comments are closed.