Electronic filing of returns mandatory: Corporate sector
By Our Reporter
ISLAMABAD, July 4: The Federal Board of Revenue (FBR) has made electronic filing of returns and statement of withholding tax mandatory for taxpayers.
Accordingly, corporate taxpayers will be required to file returns of income and withholding tax statements electronically from July 1 onwards.
According to an income tax circular, taxpayers who are covered by the Presumptive Tax Regime (PTR) are not obliged to file a return of income as required under section 114 of the Income Tax Ordinance, 2001.
Such taxpayers are, however, required under section 115(4) to file prescribed statement showing particulars relating to the person’s income for the tax year. New sub-sections (5) and (6) to section 115 have been added through the Finance Act 2007 empowering the Commissioner to issue notice for filing the prescribed statement where statement has not been filed voluntarily by the taxpayer.
The provision will be applicable from the tax year 2007. Amendment has been made in section 116 through the Finance Act 2007 to authorise the commissioner to require any individual, to file wealth statement, irrespective of his quantum of income during the relevant tax year. Further, the mandatory requirement to file a wealth statement is extended to all those individuals whose declared income for the year exceeds Rs500,000. This amendment will be applicable for the tax year 2007 and onwards.
Section 130(4) has been substituted through Finance Act, 2007, in pursuant to which Commissioners and Commissioners of Income Tax (Appeals), having at least five years experience as Commissioner, are also eligible for appointment as accountant member of the Income Tax Appellate Tribunal.
All gas marketing companies shall collect advance tax at the rate of four per cent of the amount of gas bill with effect from first day of July 2007. The tax so collected will be final tax on the income of CNG stations operators arising from sale of gas.
Further, CNG station operators will not be entitled to claim any adjustment of withholding tax collected or deducted under any other head during a tax year.
The provisions of this section shall be applicable from the year 2008.
