Showing posts with label Income Tax Ordinance 2001. Show all posts
Showing posts with label Income Tax Ordinance 2001. Show all posts

Tuesday, September 13, 2011

FBR's Clarification regarding Payment of surcharge at 15% under section 4A of the Income Tax Ordinance 2011—levied vide Income Tax (Amendment) Ordinance 2011

The Federal Board of Revenue has announced that the 15@ surcharge under section 4A of the Income Tax Ordinance 2011 is payable by all tax payers of their tax liability for the Tax year 2011, irrespective of whether their tax year ends on 31st December 2010 or 30th June 2011 or any other date.
In a circular issued here today, the FBR has made certain clarifications to the 15% Surcharge under section 4A of the ordinance in view to address the queries being received by the Board suggesting multiple interpretations of this Section and to streamline the implementation of this time bound provision.The circular further clarifies that the Tax Liability for the entire Tax Year 2011 may not be subjected to the imposition of surcharge and the same be levied on the proportionate liability for a period of three and a half month.It may hence be noted again that the surcharge is to be computed @ 15% of the Income Tax payable for three months and a half on pro-rata basis and the tax liability inclusive of 15% surcharge so calculated is to be set off against the taxes withheld or collected in the tax year.

Thursday, January 20, 2011

Karachi Income Tax Bar rejects proposed Rule 81B Active Taxpayers List

Mr Ali Rahim
President Income Tax Bar Association
Karachi.
Income Tax Bar Association, Karachi rejected proposed insertion of Rule 81B relating to Active Taxpayers List as it will affect every tax payer in the country.
In a communication to Federal Board of Revenue, it said FBR SRO 09(I)/2011, on January 6, 2011, after discussion by its members was rejected as functions and powers delegated under it negated available provisions contained in Income Tax Ordinance,2001. FBR record and data is not updated properly, web portal of PRAL faces numerous technical problems and unwarranted use of this law will be disastrous having negative impact on business activities of existing taxpayers.
Bar says taxpayer once suspended will have to run from pillar to post and their request will only be accepted when gratification is used. SRO will be considered a great tool to discourage existing taxpayers as harassment, highhandedness cannot be ruled out while exercising powers available in proposed Rule.
The Department, FBR failed to achieve task of broadening tax base and requested to shelve this SRO for time being, in the interest of country which is facing economic and geo-political challenges in the region, said Bar President Ali A. Rahim.