It is clarified by the Board that bar code on the recovery notices issued to the banks is not necessary. Notification is available at: Bar Code not necessary on recovery notices
Wednesday, September 30, 2015
Date for filing of income tax return for tax year 2015 has been extended by FBR
It is announced in the media that date for filing of income tax return for tax year 2015 has been extended by the Government of Pakistan till 31st October 2015. The decision was taken in a meeting headed by Mr. Ishaq Dar, Minister for Finance and Economic Affairs. Formal notification for extension of date will be available on the website of the FBR.
Just after the news, the iris system stopped working and people are unable to file their returns. Previously, the system was working properly.
Just after the news, the iris system stopped working and people are unable to file their returns. Previously, the system was working properly.
Tuesday, September 29, 2015
FBR extended the last date for filing of withholding statements till 8th October 2015
The last date for filing withholding statement for July 2015 was 15th August 2015 which has now been extended till 8th October 2015 by the FBR vide notification dated 28th October 2015.Extension in date for filing income tax withholding statement for tax year 2016
Last Date for filing of income tax return for 2015 is to be extended by FBR
It is a general practice of Federal Board of Revenue that despite their repeated claims that they will extend the last date for filing of income tax return, extension in filing of income tax return is given at the last movement. For tax year 2014 the last date for filing of income tax return was 30th September 2014 which was ultimately extended till 5th December 2014.
For tax year 2015 the Chambers of Commerce and other stake holders have requested the FBR to extend the date for filing of income tax returns 2015 till 15th October 2015, as there were Hajj and Eid ul Azha Holidays in this month due. Moreover, there were issues relating to compulsory filing of wealth statement for all the taxpayers as well as the issue of withholding tax on banking transactions.
It has become a tradition of FBR to extend the date every year, which needs to be curbed. The FBR should issue income tax return for the respective years much before September month preferably in the month of June and all the issues in the software in FBR portal should be resolved.
For tax year 2015 the Chambers of Commerce and other stake holders have requested the FBR to extend the date for filing of income tax returns 2015 till 15th October 2015, as there were Hajj and Eid ul Azha Holidays in this month due. Moreover, there were issues relating to compulsory filing of wealth statement for all the taxpayers as well as the issue of withholding tax on banking transactions.
It has become a tradition of FBR to extend the date every year, which needs to be curbed. The FBR should issue income tax return for the respective years much before September month preferably in the month of June and all the issues in the software in FBR portal should be resolved.
Wednesday, September 23, 2015
FBR cancelled leaves of officials and officers before and after Eid ul Azha holidays
The FBR in its recent notification has cancelled leaves already granted to the officials/officers after and before the holidays of Eid ul Azha. It is general tendency in government officials that they avail the leaves for 2/3 days and remain unavailable in offices for whole week. The government has announces Eid ul Azha Holidays from 24th September to 26th September 2015 and many government officials have plans to avail four leaves and extend the leave span to nine. The action of the FBR is at the right time as the last date of filing of returns for tax year 2015 is fast approaching and the FBR has also remained unable to achieve targets for the first quarter.
All being true, is this action of the FBR higherups is not against the leave rules and rulings of the higher courts. Does it not adversely effect the rights of the genuine cases who have to avail leave under compulsion. There are certain rulings of the higher courts that casual leave is a right of the official and cannot be strikes down.
All being true, is this action of the FBR higherups is not against the leave rules and rulings of the higher courts. Does it not adversely effect the rights of the genuine cases who have to avail leave under compulsion. There are certain rulings of the higher courts that casual leave is a right of the official and cannot be strikes down.
Cases which are excluded from Audit for tax year 2014
Those
exclusions are as under:
Income Tax Corporate Returns
a) All person(s) whose entire income is exclusively subject to Final Taxation
b) Cases where no business is conducted
c) Cases already selected for audit for 2013 by the Board
d) Cases already selected for audit by the CIRs for 2014 under section 177(1)
e) Cases qualifying for exemption from audit under clause (88) of Part IV of the Second Schedule to the Income Tax Ordinance, 2001
Income Tax Non-Corporate Returns
a) All person(s) whose entire income is exclusively subject to Final Taxation
b) Cases where no sales/ receipts declared;
c) All salaried individuals including pension or exclusive deriving foreign remittances.
d) Taxpayers exclusively deriving income from share from AOP only;
e) Cases already selected for audit for Tax Year 2013 by the Board
h) Cases already selected for audit by the CIRs for Tax Year 2014.
i) Cases qualifying for exemption from audit under clause (88) of Part IV of the Second Schedule to the Income Tax Ordinance, 2001
j) Case(s) of persons(s) where one or more of the above exclusions apply.
6.3 Sales Tax/Federal Excise Duty Corporate
a) Nill Return filers,
b) All cases of Steel Melters, and Steel Re-rollers who are paying sales tax under the Sales Tax Special Procedure Rules, 2007;
d) Commercial importers paying value addition tax and having no other source of income
e) All cases already selected for audit for Tax Periods July 2013 to June ,2014
Sales TaxFED Non-Corporate
a) Nill Return filers
b) Cases of Steel-Melters, and Steel Re-rollers who are paying sales tax under the Sales Tax Special Procedure Rules, 2007.
c) Cases of Commercial importers having no other business and paying 3% value added Sales Tax;
d) Cases already selected for audit for Tax Period(s) July 2013 to June ,2014 under section 25 ,and 38 of the Sales Tax Act , 1990;
Income Tax Corporate Returns
a) All person(s) whose entire income is exclusively subject to Final Taxation
b) Cases where no business is conducted
c) Cases already selected for audit for 2013 by the Board
d) Cases already selected for audit by the CIRs for 2014 under section 177(1)
e) Cases qualifying for exemption from audit under clause (88) of Part IV of the Second Schedule to the Income Tax Ordinance, 2001
Income Tax Non-Corporate Returns
a) All person(s) whose entire income is exclusively subject to Final Taxation
b) Cases where no sales/ receipts declared;
c) All salaried individuals including pension or exclusive deriving foreign remittances.
d) Taxpayers exclusively deriving income from share from AOP only;
e) Cases already selected for audit for Tax Year 2013 by the Board
h) Cases already selected for audit by the CIRs for Tax Year 2014.
i) Cases qualifying for exemption from audit under clause (88) of Part IV of the Second Schedule to the Income Tax Ordinance, 2001
j) Case(s) of persons(s) where one or more of the above exclusions apply.
6.3 Sales Tax/Federal Excise Duty Corporate
a) Nill Return filers,
b) All cases of Steel Melters, and Steel Re-rollers who are paying sales tax under the Sales Tax Special Procedure Rules, 2007;
d) Commercial importers paying value addition tax and having no other source of income
e) All cases already selected for audit for Tax Periods July 2013 to June ,2014
Sales TaxFED Non-Corporate
a) Nill Return filers
b) Cases of Steel-Melters, and Steel Re-rollers who are paying sales tax under the Sales Tax Special Procedure Rules, 2007.
c) Cases of Commercial importers having no other business and paying 3% value added Sales Tax;
d) Cases already selected for audit for Tax Period(s) July 2013 to June ,2014 under section 25 ,and 38 of the Sales Tax Act , 1990;
Salient Feathers of Audit Policy for Tax year 2014 by Federal Board of Revenue (FBR)
The Federal Board of Revenue has announced Audit Policy for tax year 2014. Salient features of Audit Policy 2014 are:
The Board should select cases for audit through random ballot
The Commissioners Inland Revenue shall select a minimum of 5% and maximum up to 10% of the cases under his jurisdiction by exercisng his powers u/s 177 of the Income Tax Ordinance 2001.
The Commissioner or the Board may select a class of taxpayers.
All notices issued to the cases selected for audit for 2014 should contain IRIS/TAMS generated barcode.
There are other instructions which are to make the audit procedure transparent and taxpayers friendly. But the question is: Is transparency in audit for 2014 is possible.
In Pakistan audit does not mean audit of a tax affairs of a taxpayer. Rather it is a good news for the corrupt Officers and officials that now they are authorized to grab some gratification from the taxpayers. No doubt there are certain honest Officers but it is an undeniable fact that most of the officers/officials are corrupt and they give bribe to the others to get lucrative posting. Audit wings are ideal for such officials.
So before selection of cases for audit, it is necessary for the FBR to purity itself from the corrupt officers of FBR. Moreover, FBR has a voluminous information which is obtained from different departments regarding purchase of movable and immovable properties and information regarding tanking transactions. In case FBR just give due importance to such information and post the honest officers on such posts, there will be no budget deficit and collection of tax will be more than reasonable.
Cases Selected for Audit for Tax year 2014
The federal board of revenue has selected the cases for audit through random ballot for tax year 2015. The cases are selected under section 214C of the Income Tax Ordinance 2001. The list of cases selected for audit 2014 is available on the website of FBR and can be downloaded from the following link.
Situation Vacant in FBR
FBR has announced vacancies in different cities of the countries. Last date for submission of return is 3rd October 2015. For BS-1 to 4 there is no test and no fee. For BS-5 to 15 the Tests should be given by NTS Centres in different cities. The advertisement and applications can be downloaded from the following links
Subscribe to:
Posts (Atom)