Prime Minister Tax Incentive Package: 3,395 file returns, deposit Rs 87.7 million as tax

A total of 3,395 persons filed income tax returns and deposited Rs 87.7 million as tax under the Prime Minister Tax incentive Package which expired on April 30, 2014, according to FBR data compiled here on Tuesday. Giving briefing on PM incentive package to the Senate Standing Committee on Finance, officials of the Federal Board of Revenue (FBR) informed that the clauses (87) & (88) were inserted in Part-IV of Second Schedule to the Income Tax Ordinance, 2001 vide SRO 1065(1)/2013.
As per these clauses immunity from penalty, default surcharge and audit were provided to those persons who were NTN holders as on November 28, 2013, but had not filed any or all of the returns from tax year 2008 to 2012. The immunity was given subject to the condition that they pay rupees twenty thousand per tax year along with the filing of the missing returns and also do not claim any adjustment of tax already deducted.
For those persons who were not NTN holders as on November 28, 2014 but had taxable income, similar immunity from penalty, default surcharge and audit was given subject to the condition that they pay Rs 25000 tax along with every return from tax year 2008 to 2012 and also do not claim credit of any tax deducted. Such taxpayers were also given immunity from penalty, default surcharge and audit for equal number of subsequent/future years subject to the condition that tax paid for the succeeding tax years is at least equal to the tax paid for tax year 2012.
The last date of filing of returns under these incentives was February 28, 2014 which was subsequently extended vide Circular No 01 of 2014 to April 30, 2014. FBR said that 2600 returns were filed under the incentive package up to February, 2014, and this cannot be compared with last year as no such incentive was available the previous year. Number of Returns filed and tax deposited under Prime Minister''s Tax Incentive Package revealed that 3,395 returns were filed as on March 30, 2014 and paid tax of Rs 87.7 million. No comparison can be made with last year as no such scheme was present last year. The scheme was extended up to April 30, 2014.