PERSONS NOT REQUIRED TO FURNISH A RETURN OF INCOME

01- A-Widow
02- Orphan below age of 25 years
03- A disabled persons
04-In case of Ownership of Immovable property , a NON RESIDENT PERSON
05- Any Person who is not obliged to furnish return because of his income is subject to FINAL TAXATION U/S
05,6,7,148,151,152, SUB SECTION (3) OF SECTION 153, SECTION 154, 156, AND 156 A , SUB SECTION ( 3) OF SECTION 233 OR SUB SECTION (3) OF SECTION 234 A SHALL FURNISH TO COMMISSIONER STATEMENT RELATING TO INCOME FOR TAX YEAR

WAIVER OF PENALTY FOR LATE FILING RETURN AND AUDIT CLOSURE UNDER SECTION 214-D BY GOVERNMENT

The federal Revenue Minister said today that Government will close audit of salaried person and waive of fine required under section 182 of INCOME TAX ORDINANCE 2001 amounting Rs. 20,000.

     EXEMPTION FROM PENALTY AND DEFAULT                       SURCHARGE  IN  INCOME TAX ORDINANCE  2001

       Exemption from Penalty U/S 183 is available provided that

The Federal Government or Board may by notification / order published in Official Gazette for reasons to be recorded in writing exempt any person of class of persons from payment of total or partial penalty or default surcharge. subject to conditions / limitations as may be specified.

Last date of Filing Return

FBR asked people to submit their return within due date.In a statement they said that FBR is not harassing people.e s

Taxpayers can closed audit by paying penalty or higher tax.

One Person should file consecutive two years return to be shown in Active Taxpayers List.

           ASSESSMENTS  ( UNDER SECTION 120)

When a taxpayer has furnished a complete income tax return ( Other than revised)

-The Commissioner shall be taken to have made an assessment of taxable income for that tax year and tax due thereon.

- The return shall be taken for all purose of this Ordinance to be an assessment order issued to taxpayer by the Commissioner on the day the return filed/ furnished.

- Where a return furnished is not complete , the Commissioner shall issue a notice to taxpayers informing him about the deficiencies and directing him to provide such information.

- The return shall be considered invalid return as if it had not been furnished ( When a taxpayer fails to fully comply , by the due date.

FILING OF INCOME TAX RETURN as INCOME TAX RETURN 2001

An Individual may have more than one source of income

-ADJUSTABLE INCOME ( IE .Salary Income ( That is adjustable)
-Presumptive income / FTR that is final and any tax deducted on that source of income at the time of receipt is final tax. However this amount should be shown in return filing.
- PROPERTY INCOME that is calculated as per Tax Slab.
- Business Income that is also taxable as per Slab Rate.
- Income from Other Sources - Final tax

Detail will be discussed in late due to shortage of time.

  EXEMPT INCOME OF RETURNING EXPATRIATE

A person ( Individual) who remains abroad four years and return to Pakistan 

His foreign source income shall be exempt in the year in which 

- He becomes resident

- and in the subsequent tax year

Where a Pakistan national leaves Pakistan during tax year his SALARY Income shall be exempt.

Above income is exempt as per SECTION 51 OF INCOME TAX ORDINANCE 2001.

  PREPARATION OF AUDIT NOTICE REPLY FOR SALARIED PERSONS ONLY IN FBR

First of all You should read the notice issued by Departments and read the relevant Section under Which Notice is issued. The Notice usually required the following information.

 01. Bank Statement

02. Books of accounts maintained by taxpayers.

03. Detail of expense stated in your return

04. Detail of asset appearing in your Wealth Statement

05. Detail of Liability appearing in Wealth Statement

06. Tax deducted on your salary.

and any other information that they consider necessary.

In response to your notice reply , You should provide the

Salary Sheet for the whole year.

tax deducted by emplyer ( WHT .Certificate) 

Evidence of increase in asset ( It may through gift -If it is gift  it should be through banking channel)

and Evidence of liability ( it may be loan  etc.)

However You should consult your tax consultant before submitting your reply.

Taxpayers offered easy ways to close audit proceedings for late filing

Nausheen Javaid Amjad, Member Taxpayers’ Audit FBR, has announced that all those taxpayers automatically selected for audit u/s 214D due to late filing of returns for Tax Year 2015, 2016 and 2017, have now the opportunity for automatic closure of audit u/s 214E by paying the penalty or higher tax than previously filed return, whichever is applicable under the law.

She made this statement while addressing separate gatherings of taxpayers, tax lawyers and tax practitioners at Lahore and Faisalabad. Both the events were attended by among others by President of All Pakistan Tax Bar Association Mr. Abdul Qadir Memon, Presidents and Vice-Presidents of Lahore and Faisalabad Tax Bar Associations as well as a large number of lawyers, chartered accounts and tax practitioners.

Ms Nausheen Javaid Amjadexplained that the salaried persons or those whose income falls under the category of FTR/PTR have to pay penalty only to close their audits. However, taxpayers whose income falls under any other head of income, have to apply for revision of returns u/s 214E in Iris system. A tab has been made available in the system for this task. The relevant Commissioner will approve the said request within three days or the system will automatically allow revision on the fourth day. The system will automatically calculate the tax due in both categories. Once the payment is made and relevant CPR is attached and submitted, the system will automatically close the audit proceedings. The facility for availing automatic closure of audit u/s 214E is available till 31 Dec 2018 and approximately 1,022,000 taxpayers will benefit from it.

Member Taxpayers’ Audit further said that Section 214D under which late filers were automatically selected for audit, has been deleted from the Income Tax Ordinance 2001 in the Finance Act 2018 due to undue hardships faced by new taxpayers and to facilitate the process of Broadening of Tax Base.

The above statement is copied from FBR WEBSITE SO AS TO UNDERSTAND THE TAX CLOSURE BY READERS.

    AUDIT NOTICE RECEIVED U/ S 214 D

The Government has issued mini budget according to which Section 214 D of Income Tax Ordinance has been closed / end / abate . Now audit cases will be dealt as per Section 214 E has been proposed.

Taxpayer has revised return voluntarily by 31 Ist December 2018. by paying 25%  higher tax than the tax paid with the return on the basis of taxable income or where no tax is payable 2% of turnover payable and where no turn over is declared PENALTY under Section 182 has been paid.

     CLOSURE OF AUDIT UNDER INCOME TAX ORDINANCE

    There are THREE situations in which audit can be closed.


01 SALARY/ FTR / NIL RETURN CASES FILED
  PAY Penalty by 31 December 2018.

02.LOSS OR BELOW TAXABLE INCOME

        FILE REVISED RETURN BY 31 DECEMBER 2018 BY 2 % OF TURNOVER

03. CASES WITH TAXABLE INCOME

FILE REVISED RETURN BY 31 DECEMBER 2018 BY 25 % THAN THE TAX PAID WITH THE RETURN ON THE BASIS OF TAXABLE INCOME

Minimum Penalty paid in case of late filing is Rs.20,000/.

TAXPAYERS is required to give application to Commissioner for closure of audit and he is bound to close it within THREE days. If he does not close the audit then IT Wings of FBR WILL automatically proceeds to close audit on FOURHT day.

     AUDIT UNDER SECTION 177 ( INCOME TAX                     ORDINANCE 2001)

The Commissioner may call for any record or documents including books of accounts  under this Ordinance ( Property documents, vehicles ,assets , or any other) for conducting audit  of the income tax affairs of the person.The Commissioner also have power to access data kept by the person.

 The Commissioner may, after recording reasons in writing call for the record or documents       required from taxpayer and the reasons shall be communicated to taxpayer for requiring record.

 Provided that Commissioner shall call for record of the taxpayers after expiry of the six years from the end of tax year to which it relates. 

  After obtaining necessary record / reply where necessary record is not maintained  , The Commissioner shall conduct an audit of income tax affairs , enquiry into expenditure ,assets and liabilities and 

any other information which he deem necessary.

After completion of audit Commissioner may ( if consider necessary)  amend the assessment U/S ( Sub Section 1 or) of Section 122 as the case may be.

The Board may also appoint a Firm of Chartered Accountant ,a Firm of Cost and Management Accountants to conduct audit of income tax affairs.

IF A PERSON FAILS TO PRODUCE RECORD REQUIRED FOR AUDIT  , The Commissioner 

may make best judgement assessment U/S 121.

 You can also contact me if you have any query / audit related issue.

               COMMERCIAL IMPORTER RETURN

              COMMERCIAL IMPORTER RETURN IS FILED 

           

             U/S 115 ( 4)

           

            01 You should file adjustable tax in adjustable column. e.g.

               

               

               WHT. ON CASH WITHDRAWL

               WHT , O MOTOR VEHICLE

               WHT. ON ELECTRICITY BILLS

                WHT. ON CELL PHONE / TELEPHONE

                WHILE FINAL /MINIMUM TAX COLUMN 

                 You should read 

                final income 

             e.g 

                  dividend

                  Foreign indenting commission

                  capital gain on security

                  Export proceeds U/S 154 ( 3)

                   Royalty / Fee for Technical Services to a Non-Resident covered under ADTT

                    Profit on debt U/S 152 ( 2)       

                  

                  

               

      

    

                   

                                                    PROFIT ON DEBT U/S 151

Every person paying yield on account ,deposit or certificate under National Saving Scheme or Post Office saving Account,

financial institution ,

Federal ,Provincial Government pays to any person

The payer of the interest/ yield/ profit shall deduct tax at rate specified in First Schedule at the gross amount as reduced by amount of Zakat.

The amount of tax deducted shall be final tax except ( adjustable) 

01 if taxpayer is company

02. profit on debt is taxable U/S 7 B.

APPLICATION / WITHHOLDING STATEMENT  FOR WITHHELD TAX IN IRIS FOR FILING

• claration
• Tax Amnesty
• Rectification
• Refund
• Withholding / Advance Tax

  Forms 147 (Statement of Advance Tax) 165(1) (Statement of withholding taxes filed voluntarily) 149 (Annual Statement of withholding taxes filed voluntarily) 165(2A) (Statement of withholding taxes filed after revision)

  Applications 122B(1) (Application for revision of Exemption Order) 165(4) (Application for extension in time for filing of Statement of withholding taxes) 152(2AA) (Application for reduced rate of withholding on payments to Non-Resident) 7C Application under Rule 13V of SRO 787(1)/2016 by builders for issuance of schedule of advance tax installments 152(3) (Application for reduced rate of withholding on payments to Non-Resident) 7D Application under Rule 13ZC of SRO 787(1)/2016 by developers for issuance of schedule of advance tax installments 152(4A) (Application for reduced rate of withholding on payments to Non-Resident) 152(5) (Application for reduced rate of withholding on payments to Non-Resident) 153(4) (Application for reduced rate of withholding on Supplies / Services / Contracts) (FOR GENERIC EXEMPTION)

  APPLications 159(1) / 148 (Application for reduced rate of withholding on Import) (FOR QUOTA ALLOCATION RAW MATERIAL) 159(1) / 148 (Application for reduced rate of withholding on Import) (FOR IMPORTS ADDITION RAW MATERIAL) 159(1) / 148 (Application for reduced rate of withholding on Import) (FOR IMPORTS ADDITION MACHINERY) 159(1) / 150 (Application for reduced rate of withholding on Dividend) 159(1) / 150A (Application for reduced rate of withholding u/s 150A) 159(1) / 151 (Application for reduced rate of withholding on Profit on Debt) 159(1) / 152 (Application for reduced rate of withholding on payments to Non-Resident)

  Applications 159(1) / 155 (Application for reduced rate of withholding on Rent) 159(1) / 156 (Application for reduced rate of withholding on Prizes / Winnings) 159(1) / 156A (Application for reduced rate of withholding on Petroleum Products) 159(1) / 156B (Application for reduced rate of withholding on Withdrawal from Pension Fund) 159(1) / 231A (Application for reduced rate of withholding on Cash Withdrawal from Bank)

HOW TO CREATE DELETE CPR / CHALLAN /PSID ON FBR ( PAKISTAN) FOR TAX

DEAR VIEWERS / READER

Follow the following procedures to make payment in FBR

01. Go to EFBR website and write down User Id and Password in relevant tab

02.After log in go to  e-Payment ( click on create payment)

03. Select relevant payment (ie Sales tax , FED , Income Tax and tax on immovable property) and click on it

04. Select relevant tax year ie 2019

05. Select business branch that will be shown when you click it and select it.

06. In payment nature section ( select relevant nature ie Adjustable , Demanded income tax, Admitted income tax f , final tax  , misc. tax , wwf and wppf

07. Write down taxpayers detail ( Status Resident / Non resident) and select payment month.

08. Select relevant payment section ( that is relevant) and write down tax payers NTN and click on any tab.

09. System will open the data of relevant tax payers  ( Ie tax payers Business nature)

10. Write down taxable value and rate of tax and click on any tab.

11. Tax amount will be calculated by System

12.Click on add tab

13. In particulars of payment select relevant whether you will pay through Cash , Pay order, debit card and credit card.

14. After this all click on Create at the end of page and review your feeding data .If it is correct click on Confirm.

15. Select relevant city for payment and click on Print button .

16. Your challan / PSID is ready to submit in Bank.

EDIT / DELETE PSID IF ERRONEOUS 

In E - payment Section click on search payment select relevant PSID created that is erroneous and click on delete button and prepare new one that is required.

   E Services available on FBR


- Online Verification
Where we can verify Active taxpayer status
- NTN / Sales Tax Inquiry
- Black listed status of taxpayers
-Use IRIS ADX Services to file return
- Pay tax online using ATM (Income Tax, Sales Tax, FED and Customs duty.

There are also a number of other services that can be used using online FBR services.