ISLAMABAD: The top revenue body of the country, Federal Board of Revenue, has issued draft amendments to Income Tax Rules, 2002 for making changes in apportionment of expenses.
The FBR had proposed the amendments in Income Tax Rules, 2002 using the powers conferred upon it by sub-section (1) of section 237 of the Income Tax Ordinance, 2001 (XLIX of 2001).
The amendment has been introduced to Rule 13 under which deduction and allowances have been made part of apportionment. Through this amendment the tax authorities will able to prorate the expenses of a taxpayer falling in both Final Tax Regime (FTR) and Normal Tax Regime. The proposed amendment also restricts taxpayer to claim expenses in normal tax regime for reducing the income as well as tax liability.
Another amendment proposed to Rule 122 which restricts Commissioner Inland Revenue from delegating powers to inspector for recovery above Rs5 million.
In Rules 213, 217 and 220 amendments have been proposed asking non-profit organizations to declare names, CNIC, NTN, last income declared, tax year and addresses of the promoters, directors, trustees, president, secretary, treasurer, manager and other office bearers, as the case may be, of the organization, and indicating clearly their family relationship with each other.
