ISLAMABAD, Sept 26: The Federal Board of Revenue (FBR) has amended the income tax rules to seek more information about salaried taxpayers’ sources of income in a bid to unearth evasion of taxes.

As per new format more information regarding the employee is sought for record of the tax department in view of the fact that wherever employer’s annual statement is filed, employees having no other source of income are not required to file their return of income.

The amendments were notified through a notification SRO997 of 2008 by amending the income tax rules to judge taxability and seek more information about the salaried taxpayers.

According to the notification, the annual statement of deduction of income tax from salary to be submitted by the employer as specified under Part IX, of the Second Schedule to the income Tax Rules, 2002 has been substituted.

The new format also caters to the change in law regarding taxability of salary income for the facility of the employers.

Member Direct Taxes Irfan Nadeem told Dawn that under the new amendments, the employer would submit annual statement on behalf of the employees. However, in case of other source of income besides salary, the employee would then require to file return with the income tax department.

In case the total income exceeds Rs0.5 million, the taxpayers will also require submit wealth statement, which is mandatory.

Under the amendments, the employee will have to submit a declaration to the employer envisaging information regarding mobile phone bill, motor vehicle tax, cash withdrawal, profit on debt, if any.

The employee will also submit details regarding electricity connections and telephone connection as well to the employer.

Answering a question, the member direct taxes said that the filing of declaration would not be binding for those taxpayers who had already submitted their statements. Though the notification would come into effect immediately but he said that it would be effectively applicable from next year.

“We will not take action against those taxpayers who have not submitted these details this year. We need to have these details about the taxpayers for making our data base,” Mr Nadeem said.

In another SRO998 of 2008 issued by the FBR, monthly statement of deduction of income tax at source to be filed by the withholding agents in accordance with provisions of section 165(2) as specified in Part X of the Second Schedule to the Income Tax Rules, 2002 has been substituted.

As per new format specified information regarding the nature of payments and taxability of the translations is sought in accordance with change in law and for better monitoring/analysis of taxes withheld.

The changes in the income tax rules have been made with a view to facilitating the taxpayers regarding verification/credit of tax withheld.