The Federal Board of Revenue (FBR) has issued a legal clarification that the ‘salaried individuals’ are not required to update their ‘Tax Profiles’.
According to an FBR clarification issued to the Lahore-based chartered accountant firm, the Salaried Individuals are not required to update their Tax Profile. However, every person applying for registration under section 181 of the Income Tax Ordinance 2001, including Salaried Individual, is required to update the Tax Profile.
The option to verify changes has been given in Tax Profile for submission of changes made in the Profile, FBR maintained.
The e-intermediaries have been enabled to update the Tax Profiles of Taxpayers. However, e-intermediary needs to be nominated by Taxpayer to update the Tax Profile, FBR added.
Through an income tax circular 8 of 2020, the FBR has already extended the last date of submitting the Taxpayer’s Profile by up to March 31, 2021.
According to the FBR’s circular, in the exercise of the powers conferred under Section 214A of the Income Tax Ordinance, 2001, the FBR has extended the last date of furnishing of Taxpayer’s Profile required to be submitted under Section 114A ibid up to March 31, 2021.
The FBR has also issued a user guide (profile update under Section 114A of the Income Tax Ordinance, 2001) for the taxpayers. 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 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 before 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 organizations, and any trust or welfare institution.
Those registered before September 30, 2020, having business income or incomes subject to final taxation, trusts, welfare institutions, and non-profit organizations are required to file taxpayers’ profile on or before December 31, 2020. The “taxpayer’s profile” shall be filed electronically in the prescribed format as provided on the IRIS Web Portal.
However, upon filing or updating the profile, such persons shall be allowed to be placed on the active taxpayers’ list upon payment of the surcharge, which is proposed to be Rs. 20,000 in the case of a company, Rs. 10,000 in the case of an association of persons, and Rs. 1,000 in the case of an individual.
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.