Failure to furnish IT return will lead to fine

A minimum penalty of Rs 70,000 may be imposed by the Federal Board of Revenue (FBR) where any person fails to furnish return of income and statement as required under Section 114 & 115 of the Income Tax Ordinance, 2001 within the due date, which is now October 31, 2013 for tax year 2013.
Sources told Business Recorder here on Friday that October 31, 2013 will be the last date for filing of income tax returns and statements of final tax for all taxpayers including individual, salaried taxpayers, Association of Persons (AOP) and Companies. Where any taxpayer fails to furnish a return of income as required under section 114 within the due date, such person shall pay a penalty equal to 0.1 percent of the tax payable in respect of that tax year for each day of default. This is subject to a maximum penalty of 50 percent of the tax payable provided if the penalty worked out as aforesaid is less than Rs 20,000 or no tax is payable for that tax year such person shall pay a penalty of Rs 20,000. Similarly, where any taxpayer fails to furnish a statement as required under Section 115 within the due date, such person shall pay a penalty of Rs 2,500 for each day of default subject to a minimum penalty of fifty thousand rupees.
Sources further stated that the FBR has already extended the last date for filing of income tax returns/statements of final tax for all taxpayers including individual, salaried taxpayers, Association of Persons (AOP) and Companies, up to October 31, 2013 to largely facilitate the taxpayers across the board. In this respect FBR has issued Circular No 9 of 2013 regarding extension in the date for filing of income tax returns/statement for the Tax Year 2013. Date for filing of returns by individual, salaried taxpayers, Association of Persons (AOP) and Companies, which is due on September 30, 2013 has been extended to October 31, 2013.
It is further elaborated by the sources that electronic system of the FBR will stop processing of income tax returns to be filed electronically without the mandatory filing of wealth statements for Tax Year 2013. This year, it has been decided that income tax return form would be considered as incomplete for individuals, who would not file their mandatory wealth statements along with the returns. The system would not accept the income tax return forms until the mandatory wealth statements have also been filed as required under the law. Those who are liable to file returns electronically, have to file wealth statement through the electronic system. Otherwise, only filing of income tax return would not be accepted by the FBR's electronic system. Such incomplete tax returns would not be accepted by the tax authorities.
Extension in time to submit annual income tax returns/statements of final tax would greatly facilitate the taxpayers and tax practitioners across Pakistan to conveniently prepare and fulfil the statutory obligation under the law to file income tax returns peacefully for the Tax Year 2013, however, where there is default of submission of returns/statements within extended time, heavy penalties may be imposed by the FBR; sources added.