KARACHI: The Federal Board of Revenue (FBR) has postponed automatic assessment of tax returns till June this year as its online system is not ready to check taxable income and payable taxes, sources said on Wednesday. Told on
The FBR has accepted returns for tax year 2020 without any automated examination as its online system has yet to be updated.
According to sources, since the FBR did not introduce the required changes to the online system, all returns were accepted without examination.
Last year, the government abolished the two-decade-old self-assessment scheme through a new section (120 (2A)) introduced in the Income Tax Ordinance 2001, under which the return filed by the taxpayer is processed through an automated system. Reach taxable income and payable taxable amounts.
Prior to the amendment, when a taxpayer offered a refund, the Inland Revenue Commissioner assessed the taxable income.
By law, any numerical errors or erroneous claims, losses, deductions, allowances or tax credit corrections must be automatically reviewed and adjusted within six months of filing a return, or be disclosed. That the losses should be misdirected. Return of income, according to Deloitte, a chartered accountant firm.
A senior tax official said the law would apply to returns filed for the tax year 2021.
The official, speaking on condition of anonymity, said: “An amendment may be introduced through an ordinance to make income tax returns lawful.”
Under the new system, adjustments will be made after giving the system a chance to hear through the notices generated and taking into account the response received from taxpayers. However, if no response is provided, adjustments can be made within 30 days of the notice being issued.
An enraged taxpayer with an order approved under sub-section (2A) of section 120 of the Ordinance shall have the right to appeal to the Commissioner (Appeal) under section 127 of the Income Tax Ordinance 2001.
In addition, if no adjustment has been made under sub-section (2A) of section 120 of the Ordinance within 6 months of filing the return of income, the return of income will be assessed after completion of six months. The FRB said that the period and information would be given to the taxpayer automatically through Iris.