ISLAMABAD: The government has proposed prosecution for any company including banks and association of persons (AOPs) for failure to furnish all the required information in return of income.

The Finance Bill 2024 has introduced a new section 191A (prosecution for failure to furnish information in return of income) in the Income Tax Ordinance 2001.

Finance Bill 2024 stated that any company including a banking company and an association of persons who fails to fully state all the relevant particulars or information as specified in the form of return, including a declaration of the records kept by the taxpayer; furnishes blank or incomplete particulars or information as specified in the return of income; or attaches blank or incomplete annexures, statements or documents where such annexures, statements or records were required to be filed, shall commit an offence punishable on conviction with a fine or imprisonment for a term not exceeding one year or both.

Prosecution for non-registration: Any person specified in section 99B who is required to apply for registration but fails to do so shall commit an offence punishable on conviction with imprisonment for a term not exceeding six months or fine or both.

An explanation is added to the effect that super tax is leviable on banking companies for tax year 2023 and for subsequent years.

The provisions pertaining to income of banks is clarified so that tax treatment for banks remain the same and the deductions allowed from income remain the same as before this bill.

Copyright Business Recorder, 2024