ISLAMABAD: The Federal Board of Revenue (FBR) has issued a clarification that the salaried individuals are not required to update their tax profiles

under section 114A of the Income Tax Ordinance, 2001.

According to a FBR clarification issued to the Lahore-based chartered accountant, the salaried individuals are not required to update their tax profiles, however, every person applying for registration under section 181 of the Income Tax Ordinance 2001 including salaried individual is required to update tax profile.

The option to verify changes has been given in “Tax Profile” for submission of changes made in the profile, the FBR maintained.

The e-intermediaries have been enabled to update “Tax Profiles” of the taxpayers, however, e-intermediary needs to be nominated by taxpayer in order to update tax profile, the FBR added.

The FBR has already extended the last date of furnishing of Taxpayer’s Profile required to be submitted under Section 114A ibid up to March 31, 2021.

Under the law, the taxpayer’s 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.

Presently, 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. The 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 31st, 2020.

Copyright Business Recorder, 2021