Federal Board of Revenue (FBR) is able to get not more than 20 per cent of income tax returns for tax year 2015-16, due to IRIS system issues. Talking to Business Recorder, Rehan Hasan Jafri, President Karachi Tax Bar Association (KTBA) said that not more than 20 per cent taxpayers have so far submitted their income tax returns for tax year 2015-16, following the IRIS system issues.
He said that the Bar through a letter had requested to the chairman FBR to resolve the problems of IRIS system and added that taxpayers were facing enormous difficulties in preparing and filing of Income Tax Return/Statement under sections 114 and 115(4) of the Income Tax Ordinance, 2001 as IRIS system was not working properly.
He said that IRIS system has been running slow since Ashura holidays ended and the system is neither under maintenance nor showing errors in connection on the web-portal that made taxpayers unable to e-file the tax returns and wealth statements. Jafri said that the final tax was being incorrectly worked out under section / head "Final/Fixed/Minimum/Average/Relevant/Reduced Rate". However, while working out the liability against final tax under section head "Computation", the same is appearing as "NIL" at Code No 920100, as the portal is not taking the impact of final tax receipts and instead of charging tax under final tax and the tax return is creating a "Refund" of the amount of total tax deduction under Code No 9210.
He said that Association of Persons (AOP) having multiple receipts under normal, final and income under minimum tax appeared and creating a wrong tax demand which actually should not be the case, which should be rectified in the tax return for a proper tax and declaration in order to comply to the law and e-filing of tax returns. Moreover, the president KTBA said that IRIS was not providing the provision of tax deducted in view of clause 45A(a) of the Second Schedule of the Income Tax Ordinance 2001 ie Rate of deduction of WHT under clause (a) and (b) of subsection (1) of section 153 (0.1%). This was available on the month of income for tax year 2013, 2014 and 2015.
In certain cases senior citizen rebate ie 50% of tax demand in view of clause (1B) of Sch.I Pt. I is not calculated by IRIS system. He said that the WWF was not added as tax liability and the Bar had already communicated the same to the board but no action had been taken so far. Keeping the said problems in view, Jafri requested the chairman to resolve the issues and enable the taxpayers to e-file the tax returns and statements for the tax year 2016 and extend the date till December 31, 2016 to provide facilitation at maximum.
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