KARACHI: Reviewing the technical and non-technical hurdles in filing returns, the Federal Board of Revenue (FBR) has decided to act realistically by imposing fines on late filers in the board, people familiar with the matter said on Saturday. Said.
Sources said that the FBR has softened its stance on imposing fines on those who submit late income tax returns for the tax year 2020. Although the higher tax authority has not yet imposed any fines and penalties for filing after the due date, the action is being discussed in the recent past.
FBR member Ashfaq Ahmed said, “Fines and penalties on late filers are not to be levied and they will be used as a tool to create instability against late filers.” RK Member Inland Revenue (Operations) said.
The senior tax official said this during a meeting with the officials of Karachi Tax Bar Association (KTBA) in which the issue of submission of income tax returns for the tax year 2020 was discussed. According to people’s opinion.
Ahmed said those who have submitted income tax returns after the due date are liable to fines and penalties. “However, the FBR can impose fines on late filers based on the case,” he said.
The deadline for filing income tax returns was December 8, 2020, in the case of salaried and business people, final taxpayers coming under the final tax government, and companies with special tax years. However, in the case of corporate taxpayers, the last date for filing returns was December 31, 2020.
The FBR did not extend the deadline. And, as of December 8, the revenue agency has received about 1.8 million income tax returns. However, the FBR directed all tax offices to extend the date for taxpayers submitting applications to the Commissioner of Inland Revenue.
The number of income tax returns increased to 2.4 million by January 15, the tax official said.
Section 182 of the Income Tax Ordinance 2001 specified the amount of penalty for late submission of return.
If a person fails to provide a return of income, such person shall pay for each day equal to 0.1% of the tax payable in respect of this tax year, while a maximum of 50 of the tax payable. There will be a percentage penalty. If the amount mentioned in the said fine is less than Rs. 40,000 or no tax is paid for this tax year, then such person will have to pay a fine of Rs. 40,000.
Provided that if 75% of the income is from salary and the amount of income under salary is less than Rs. 50 lakhs, the minimum amount of penalty will be Rs. 5000.
Similarly, if a person fails to submit a statement of assets, which must be filed along with the return of income by the due date, then such person is liable to pay 0.1% or 100% of taxable income every week. Anything out of Rs. Is more
The tax official told KTBA that the FBR was cracking down on non-filers and would initiate legal action against non-compliant taxpayers.
KTBA officials said many taxpayers have real reasons for being late in filing. Therefore, the FBR should take a lenient stance and withdraw the penalty on returns filed after the due date.