The taxpayers including business individuals, salaried persons, Association of Persons (AOPs) and companies, who would make tax payments after October 31, 2011 will be liable to pay fine and penalty as per relevant provisions of the Income Tax Ordinance 2001.
Sources told Business Recorder here on Sunday that the major portion of the income tax surcharge which could not be deposited up to June 30 2011, is expected to be paid on October 31 by all concerned taxpayers including banking companies. It is expected that all taxpayers would comply with the provisions of the tax laws for payment of tax including income tax surcharge by October 31, 2011.
The FBR has extended the date for filing income tax returns up to November 21, 2011 subject to the condition that the return filers pay the due tax payable on Monday (October 31). This extension is available to all the Business Individuals, Salaried Persons, AOPs and those companies whose tax year ended between July 1 and December 31, 2010.
All the State Bank of Pakistan (SBP) and National Bank of Pakistan (NBP) branches will remain opened to collect the tax on October 31, 2011 upto 8:00pm so that the taxpayers may easily deposit the due tax. The taxpayers making tax payments after October 31, 2011 will be liable to pay fine and penalty as per Income Tax Ordinance 2001.
Almost all the Individuals, AOP and Banking Companies will also have to pay 15 percent surcharge based on their total tax liability for the Tax Year 2011. In all such cases, the additional surcharge will be 15 percent of the total income tax payable divided by twelve 12 and multiplied by 3.5. This figure of 3.5 corresponds to the three and half months for which the surcharge is applicable. All the taxpayers should carefully compute the 15 percent surcharge and deposit on Monday in order to avoid any fine and penalty.
Tax experts are of the view that the salaried persons who were given bonuses or their employers did not deduct tax u/s 149 of the Ordinance 2001 at the time of release of salary should workout their tax liability and 15 percent surcharge and accordingly deposit the same in the NBP/SBP branches. All business persons and even those falling under PTR regime should also compute surcharge payable and pay accordingly. About 2000 companies including all the banks will have to pay the tax payable with return u/s 137 of the Ordinance 2001 and the 15 percent surcharge for the Tax Year 2011.
The major amount of the leftover portion of income tax surcharge, which could not be paid upto June 30 2011, is likely to be paid on October 31, 2001 along with the income tax return. The major portion is expected to be paid by the banking companies here on Tuesday (October 31), they added.