Under the Finance Bill 2020, the salaried class is not required to submit “Taxpayer’s profile” to the Federal Board of Revenue (FBR). The condition of the “Taxpayer Profile” will only be applicable to businesses.
The new condition for submission of the “Taxpayer’s profiles” cover certain categories of taxpayers that include:
- Persons applying for registration
- Persons deriving income chargeable to tax under the head, “income from business”
- Income subject to final taxation
- Non-profit organizations
- Any trust or welfare institution
According to the Finance Bill 2020, the following persons shall furnish a profile:
- Every person applying for registration under Section 181
- Every person deriving income chargeable to tax under the head, “income from business”
- Every person whose income is subject to final taxation
- Any non-profit organization as defined in Clause (36) of Section 2
- Any trust or welfare institution; or any other person prescribed by the board
A taxpayer’s profile shall be in the prescribed form and shall be accompanied by such annexures, statements or documents as prescribed. It shall fully state, in the specified form and manner,
- The relevant particulars of bank accounts
- Utility connections
- Business premises including all manufacturing
Storage or retail outlets operated or leased by the taxpayer - Types of businesses
- Such other information as may be prescribed
They shall be signed by the person being an individual, or the person’s representative where Section 172 applies and shall be filed electronically on the web as prescribed by the board.
It is pertinent to mention that the return filers will now be required to submit a “Taxpayer Profile” electronically including particulars of bank accounts, utility connections, business premises including all manufacturing, storage or retail outlets etc.
A taxpayer’s profile shall be furnished:
- On or before the 31st of December 2020 in case of a person registered under section 181 before the 30th of September, 2020; and
- Within ninety days of registration in case of a person not registered under section 181 before the 30th of September 2020.
The profile shall be updated within 90 days of a change in any of the relevant particulars of information.
The bill also proposed that any person who is required to furnish or update a taxpayer’s profile but fails to furnish or update within the due date will be penalized with a penalty of Rs. 2,500 for each day of default from the due date with a minimum penalty of Rs. 10,000 in case of failure to furnish or update the tax profile.
The bill also proposes to exclude the name of the person from active taxpayers’ list in such a scenario
It’s so confusing. Na koi sar hai na paer hmari economy ka. Abi tak insy aik strong policy hi nai ban pa rhi regarding income tax, har saal change kar dety hain. Awam ko zaleel kar ky rakha hoa hai.
this article is most unclear and confusing copied text from somewhere in hurry. Ata sb should get some good writers. attaining a good visitors is good but content should be atleast meaning full
Other countries of World have “Simplified their Tax System” to ensure transparency.
FBR always “Complicates the already Complicated Tax System” ensuring… you know, it’s an “Open Secret”.