Tax amnesty extended till April 30

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ISLAMABAD: The amnesty package announced by the government on Jan 1 to bring more citizens to the tax net has been extended until April 30.

The package had expired on Feb 28, and was meant for those who neither had a valid national tax number (NTN), nor had filed their returns by Nov 28, 2013.

There has been a lukewarm response from the people towards availing the scheme.

An FBR spokesman said that the board had started publicity campaign for making the scheme a success.

As per the scheme, people who have NTNs, but did not file returns during the last five years can now submit returns until April 30.

The new filers will be exempted from any penalty, additional tax and audit.

Such individuals will have to pay Rs20,000 per annum as a minimum tax on declaration of an annual income of Rs400,000.

At the same time, an individual doing business but not having an NTN will have to file tax returns for the past five years, with the maximum payment of Rs25,000 per year as fixed rate until April 30.

Under the income tax law, the past returns can only be filed for five years. The taxpayers will not be entitled to claim any adjustment of withholding collected or deducted during a tax year.

The government also exempted such people from paying additional tax, penalty on late filing of returns and default surcharge on payment.

Immunity from audit will be available for the tax years for which returns are filed and for an equal number of subsequent years. In case returns for the past five years are filed, the audit exemption period will span a maximum of 10 years.

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