Houses of 500 sq yards, above: tax notices to be issued to owners, tenants

The Federal Board of Revenue (FBR) has decided to immediately issue notices to owners/tenants of houses of 500 square yard and above, who are not on the tax-roll, under Income Tax Ordinance 2001. In this regard, the FBR on Thursday issued instructions to the Large Taxpayer Units (LTUs) and Regional Tax Offices (RTOs) for issuance of notices to the owners/tenants of houses without any delay.
According to the FBR''s instructions to the field formations, the issue of broadening of tax base was discussed in great details and all the Chief Commissioners promised to achieve the targets assigned by the Board for booking of new taxpayers. It was decided that the targets issued by Directorate General Intelligence and Investigation Inland Revenue for booking of new taxpayers would be achieved by December 31, 2011.
The field formations would issue polite notices for filing the returns to owners/tenants of houses of 500 sq. yd. and above, who are not on the tax roll, FBR''s instructions added. Under section 114 of the Income Tax Ordinance 2001, persons liable to file income tax returns included owners of immovable property with a land area of 250 square yards or more or owns any flat located in areas falling within the municipal limits existing immediately before the commencement of Local Government laws in the provinces; or areas in a Cantonment; or the Islamabad Capital Territory; owners of immovable property with a land area of 500 square yards or more located in a rating area; owners of a flat having covered area of 2000 square feet or more located in a rating area and other persons liable to file returns under section 114 of the Ordinance 2001.