I GOT myself registered for income tax and obtained NTN in July 2014. I invested in stocks and fixed deposits when during the year these investments started paying off.

Income tax on these profits/incomes under the PTR regime is 10pc but my tax rate was 15pc because my name was not on the list of those who have filed their tax return for tax year 2013.

I had no legal obligation to file return for tax year 2013 and 2014 as I got myself registered in July 2014. My tax return will be due in 2015.

I should not be penalised because I voluntary enrolled myself in the tax net. Under the prevailing income tax laws no one would voluntarily enrol himself in the tax net when he knows he would be penalised for being honest.

Could the FBR senior officials or tax bars take some time and guide the new taxpayers?

From tax year 2014, property income will be taxed according to the slab given in Part I -- meaning thereby after deduction of all admissible expenditures, as prescribed in section 15A of the Income Tax Ordinance, 2001.

On the other hand, a tenant while paying rent would deduct advance tax on gross rent according to Division V of Part III of the first schedule.

Again, could the senior officials in the FBR or tax bars clarify the position? Does the above need any rectification?

M. Jawed Abubaker

Karachi

Published in Dawn, October 1st, 2014