ISLAMABAD: The time limitation for calling of income tax return shall not be applicable to a person who has foreign income or foreign assets.
According to income tax circular number 5 of 2021 issued by the FBR, here on Thursday, the law provides for time limitation of five years for calling of return however, where taxpayer is a non-filer this limitation is 10 years.
Now it has been provided that this time limitation shall not be applicable to a person who has foreign income or foreign assets.
Necessary changes have been introduced by adding proviso to sub-section (5) of Section 114 of the Income Tax Ordinance.
The FBR stated that the Section 114 enumerates persons who are required to file return under law.
Now the Board with the approval of the minister in charge has been empowered to notify persons or classes of persons, who are required to file the return of income.
The FBR has introduced a provision for discouraging "on" money on vehicles.
The persons buying motor vehicles would be required to get them registered in their own names otherwise, this additional tax would be collectable.
In order to discourage "on" money, additional tax of Rs50,000, Rs100,000, and Rs200,000 for vehicles upto 1000cc, between 1000cc, and 2000cc, and beyond 2000cc, respectively, was imposed where a vehicle is sold within 90 days of its ownership. This was introduced vide Tax Laws (Amendment) Ordinance, 2021.
It was applicable till June 30, 2021.
Due to its positive impact, it has been continued.
Further, the period of 90 days has been withdrawn.
Now the persons buying motor vehicles would be required to get them registered in their own names otherwise, this tax would be collectable.
Used vehicle market is working in an undocumented environment.
In order to promote documentation and corporatization of this sector has been granted exemption from withholding tax on the purchase of used vehicle from general public and reduced minimum turnover tax from 1.5 percent to 0.25 percent.
Necessary changes have been made in clause (45B) of Part-IV of Second Schedule, the FBR added.
About the powers of the tax authorities, the FBR specified that the tax authorities can conduct inquiry under Section 122(5A) in certain matters regarding amendment of assessment without selection of case for audit under Section 177 of the Ordinance.
This power to conduct inquiry has been withdrawn.
The law prescribes time limit of five years for amendment of assessment.
Such proceedings were usually dragged for long periods after issuance of show cause notices.
Now the time limit of 120 days has been prescribed to conclude these proceedings after issuance of show cause notice. Necessary changes have been made in Section 122(9) of the Ordinance.
The power of the commissioner to reject advance tax estimates has also been withdrawn.
Necessary changes have been made in Section 147 of the Ordinance.
Law has not provided any time limitation to complete proceedings in pursuant to the orders of the commissioner under Section 122A.
Now proceedings shall be concluded within the time limit of 120 days, the FBR added.
Copyright Business Recorder, 2021