ISLAMABAD: Tax officials of the Federal Board of Revenue (FBR) have launched a physical survey of business community working within the jurisdiction of Islamabad to check whether withholding tax has been deducted and deposited by the businesses operating in rental buildings.

The deputed teams of the Regional Tax Office (RTO) Islamabad, Tuesday, visited various markets of the federal capital and requested the businessmen to fill the mandatory survey form and submit the same to the concerned tax officials.

The survey form seeks business details, rent payments and building owner details etc. The physical survey of business establishments of the federal capital would continue during the current week.

Under Section 155 (income from property), every prescribed person making a payment in full or part (including a payment by way of advance) to any person on account of rent of immovable property (including rent of furniture and fixtures, and amounts for services relating to such property) shall deduct tax from the gross amount of rent paid at the rate specified in Division V of Part III of the First Schedule of the Income Tax Ordinance.

According to the notices served to the business community with the objective of conduction of the survey, the information has been collected from the business under Section 176 of the Income Tax Ordinance 2001.

The proforma contains information regarding particulars of business, payment of recent and deduction of tax thereon under Section 155 of the Income Tax Ordinance 2001.

The survey would also verify the timely and accurate deduction and payment of withholding tax to the national exchequer. The information on the prescribed proforma should be submitted with rent agreement or proof of ownership, in case building is not on rent, the relevant notice said.

The information is called under Section 176 of the Income Tax Ordinance 2001 with the due permission of Commissioner Withholding Taxes, RTO Islamabad.

In case of non-compliance, penalty under Section 182(9) of the Income Tax Ordinance 2001 would be imposed.

Under the penal provision, any person who fails to furnish the information required or to comply with any other term of the notice served under Section 1765 [or 108] of the Income Tax Ordinance 2001.

Such person shall pay a penalty of Rs25,000 for the first default and Rs50,000 for each subsequent default.

The concerned inspector having the said CNIC has been deputed to gather information after taking due permission of the Commissioner Inland Revenue, the notice adds.

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