ISLAMABAD: The Federal Board of Revenue (FBR) has directed taxpayers that the “taxpayer's profile” shall be filed electronically on the prescribed format as provided on the IRIS Web Portal.
According to the FBR's notification SRO1341(I)2020 issued here on Wednesday, the taxpayers profile would be verified in the manner specified on IRIS Web Portal.
A tax expert explained that the new condition for submission of the "Taxpayer's profiles" covers certain categories of taxpayers i.e. persons applying for registration, persons deriving income chargeable to tax under the head, "income from business"; income subject to final taxation; non-profit organisations, and any trust or welfare institution.
The persons, registered before September 30, 2020, having business income or incomes subject to final taxation, trusts, welfare institutions and non-profit organisations are required to file taxpayers' profile on or before December 31, 2020.
Nevertheless, there is a dire need to simplify return forms without compromising on data required to verify accuracy of the declared version.
Instead of endeavouring to obtain all the relevant information in the income tax return, a new section was added wherein taxpayers' profile may be prescribed in order to capture data relevant to the taxpayer.
The persons who are already registered before September 30, 2020, and are deriving business income or incomes subject to final taxation, trusts, welfare institutions, non-profit organisations and such other persons prescribed by the board are proposed to file a profile on or before December 31, 2020.
The FBR said that the persons who obtain their registration after September 30, 2020 are proposed to furnish such profile within 90 days of registration.
In case of any change in particulars of information, such persons shall update their profile within 90 days of the change in particulars.
The profile contains information relevant to income regarding bank accounts, utility connections, business premises including all manufacturing, storage or retail outlets operated or leased by the taxpayer, types of businesses and such other information as may be prescribed by the board.
Moreover, if a person fails to furnish or update a taxpayer's profile within the due date or time period as extended by the board under Section 214A, such person shall not be included in the active taxpayers' list for the latest tax year ending prior to the aforesaid due date or extended date.
However, upon filing or updating the profile, such persons shall be allowed to be placed on the active taxpayers' list upon payment of surcharge which is proposed to be Rs20,000 in the case of a company, Rs10,000 in the case of an association of persons, and Rs1,000 in the case of an individual, the FBR added.
Copyright Business Recorder, 2020