The Federal Board of Revenue has decided to make it mandatory for directors of the companies and corporate entities to electronically file income tax returns and withholding tax statements with complete tax related details to the tax department. In this connection, the FBR has issued SRO 929(I)/2011 here on Friday to seek comments of the stakeholders on the said mandatory provision for directors of companies in 15 days.
Sources told Business Recorder here on Friday that the FBR would expand the scope of the e-filing system. This has been done in a phase-wise manner to increase the number of filers using electronic system. The companies are the most documented sector and information about their directors would also expand the e-filing system and help in maintaining an authentic database on such directors of companies.
At present, 1.25 million persons are electronically filing returns and statements including those employers who file statements on the behalf of their employees. Around 22,500 companies are liable to file their income tax returns and all companies have directors where their number is depended upon the type of company. One single member company can have one director but other companies would have at least two directors. In this way, over and above 50,000 more returns are expected through electronic means under the electronic filing system of returns. This additional information about the directors of the companies would not only expand the scope of the e-filing system, but also be instrumental in obtaining details about the directors of companies.
The FBR has also decided to make it compulsory for the individuals with annual turnover of Rs 50 million or more to electronically file income tax returns and withholding tax statements from July 1, 2011, the official added.
Following is the text of the notification issued here on Friday; The following draft of certain further amendment in the Income Tax Rules, 2002 which the Federal Board of Revenue proposes to make in the exercise of the powers conferred by section 237 of the Income Tax Ordinance, 2001 (XLIX of 2001), is hereby published for the information of all persons likely to be affected thereby and as required by sub section (3) of the said section, notice is hereby given that the draft amendment will be taken into consideration after fifteen days of its publication in the official Gazette.
Any objection or suggestion, which may be received from any person, in respect of the said draft before the expiry of the aforesaid period, shall be considered by the Federal Board of Revenue.
Draft amendments In the aforesaid Rules in Chapter XI, in rule 73, after sub rule (2D), the following new sub rule, shall be inserted, namely: "2DD) In case of an individual with annual turnover of rupees fifty million of more and in the case of Director of a company, electronic filing of income tax returns and withholding tax statements shall be mandatory with effect from the first day of July 2011", the notification added.