The Central Board of Revenue (CBR) has decided to issue notices to non-filers of income tax returns for 'tax year 2004'. Official sources told Business Recorder here on Tuesday that all persons liable to file returns under income tax law must file the same for the tax year 2004, otherwise the CBR is empowered to serve notices on them under section 114 of Income Tax Ordinance 2001.
Moreover, the CBR has the authority to impose penalty of Rs 100 per day on non-filing of the return.
The CBR can also take ex parte action against the non-filers of returns on the basis of estimated income.
Officials said that everyone who has to file return, should file it in September, otherwise the department has the authority to take action against them.
They said that the CBR would use the information available with the Integrated Tax Information System (ITIT) for broadening of tax base.
When asked whether the CBR can issue polite letters to taxpayers who have not filed returns till September 30, officials said that there is no question of issuing polite letters to the non-filers. The CBR will issue notices under section 114 of the Ordinance 2001.
Under section 114 of the Income Tax Ordinance 2001, the following persons are required to furnish a return of income for a tax year, namely:-
[(a) every company;
[(ab) every person (other than a company) whose taxable income for the year exceeds the maximum amount that is not chargeable to tax under this Ordinance for the year;]
(b) any person not covered by clause (a) 1[or (ab)] who -
(i) has been charged to tax in respect of any of the four preceding tax years;
(ii) claims a loss carried forward under this Ordinance for a tax year;
(iii) owns immovable property, with a land area of two hundred and fifty square yards or more, located in areas falling in the limits of a Metropolitan/Municipal Corporation, a Cantonment Board, or the Islamabad Capital Territory or owns any flat;
(iv) owns a motor vehicle (other than a motor cycle) in Pakistan;
(v) subscribes for a telephone including a mobile phone in Pakistan;
(vi) has undertaken foreign travel in the tax year other than travel by a non-resident person or any travel for the purposes of the Haj, Umrah, or Ziarat; or
(vii) is member of a club where the monthly subscription exceeds five hundred rupees or the admission fee exceeds twenty-five thousand rupees.
The Commissioner may, by notice in writing, require any person who, in the Commissioner's opinion, is required to file a return of income under this section for a tax year 2[or assessment year] but who has failed to do so to furnish a return of income for that year within thirty days from the date of service of such notice or such longer period as may be specified in such notice or as the Commissioner may allow.