Federal Board of Revenue (FBR) IT system discourages new persons who are willing to file their tax returns and pay their income tax liability as the IRIS is not generating any tax payment slip commonly known as Payment Slip ID (PSID).
Tax experts told this scribe that the FBR's IT System IRIS is unable to treat the CNIC as NTN for new person willing to file their income tax returns. The issue has been witnessed in case of new taxpayers like individuals. Quite surprisingly if someone is a new taxpayer and willing to pay taxes, he/she cannot generate PSID and pay tax on IRIS or on eFBR webportal.
Meanwhile, the FBR was summoned by the Federal Tax Ombudsman (FTO) wherein salaried taxpayer seeks indulgence of FTO on the issue of use of CNIC in place of NTN for filing income tax returns for Tax Year 2015. The FBR has to explain its view point in writing and produce documents which were presented before the Parliament on the issue of policy decision wherein the matter was communicated that CNIC issued by NADRA shall be used as NTN for tax year 2015 and onwards. It is further asked to explain whether necessary amendments have been made in the relevant Income Tax Rules, 2002 to seek information of third party from a prospective salaried individual.
Sources further told earlier in this complaint CEO PRAL/Member IT personally attended the hearing before the FTO and explained the working of IRIS.
The National Assembly of Pakistan through Finance Act, 2015 has approved the use of CNIC in place of NTN for filing income tax returns by individuals with effect from Tax Year 2015. The FBR is bound to implement the decision of the Parliament. Taxpayers falling under the category of individuals including SALARIED PERSONS cannot file their income tax returns (electronically) for Tax Year 2015 merely on the basis of their CNICs as they have to obtain NTN first for Enrolment with the FBR.
When contacted tax lawyer Waheed Butt told this correspondent that after issuance of SRO 791(I)/2015 dated 10.08.2015 all individuals earning taxable salary shall be liable to file income tax return electronically from Tax Year 2015, the FBR is in a mess on the issue of conversion of CNIC into the NTN while ground reality is quite pathetic because no one can file tax return electronically without first obtaining NTN.
Finance Minister Ishaq Dar earlier at the beginning of year 2015 repeatedly announced to abolish NTN by 01.07.2015 and start using the CNIC for all tax purposes; however, the NTN system would remain intact for companies. The main objective to adopt this system was to facilitate the citizens of Pakistan as well to enable the FBR to trace out anybody with lavish lifestyle but lying outside the ambit of tax net. However, now the FBR is in a state of confusion to implement this crucial announcement made by the Finance Minister due to some unknown reason while the issue has also been unanimously approved by the National Assembly of Pakistan, the lawyer added.
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