ISLAMABAD: The Federal Board of Revenue (FBR) has so far received over 1 million income tax returns for the Tax Year 2021.
According to the sources, the FBR has decided not to extend date for filing of income tax return.
The FBR’s system is working smoothly without any error and there is no justification for extension in date for filing of returns, they added.
Under the Tax Laws (Third Amendment) Ordinance, 2021, the FBR has enforced a new measure that a person who fails to file the return within the due date will have to pay a penalty of higher of Rs1,000 or 0.1 percent of tax payable for each day of default under the Tax Laws (Third Amendment) Ordinance, 2021. As per the FBR, a new penal regime for non-filing of income tax return has been introduced through amendment to Section 182 of the Ordinance. A person who fails to file return within due date will have to pay a penalty of higher of Rs1,000 or 0.1 percent of tax payable for each day of default.
However, the minimum penalty shall be Rs10,000 in case of individuals having 75 percent or more income from salary and Rs50,000 in other case, and the maximum penalty shall not exceed 200 percent of tax payable by the person. Furthermore, the above mentioned penalties shall also be reduced by 75 percent, 50 percent, and 25 percent in case return is filed by the person within one, two or three months respectively, after the due date.
The general penalty for contravening any provisions of the ordinance has been omitted.
Copyright Business Recorder, 2021