ISLAMABAD: Federal Board of Revenue (FBR) has announced benefits of filing annual income tax returns for tax year 2019 by due date i.e. September 30, 2019.
According to media, the FBR in its ongoing campaign for encouraging people to file their income tax returns by due date highlighted advantages of filing by due date and also pointed out disadvantages of non-compliance.
The FBR said that for not filing the return by due date the person/company will be charged withholding tax at double rates; FBR will assess the applicable tax without serving any notice; legal action will be taken resulting into imprisonment of one to three years; fine will be charged on late submission of income tax return.
By filing the income tax returns by due date i.e. September 30, a person/company shall be enlisted to Active Taxpayers List (ATL). The following are the benefits of ATL enlistment:
a Almost half of the withholding tax as compared with the inactive taxpayers
b 5.5 percent tax on imports (raw material)
c 6 percent on imports (commercial)
d 15 percent tax on dividends
e 10 percent tax on bank and saving scheme profit worth up to Rs0.5 million and 15 percent on above Rs0.5 million
f 4.5 percent tax on sale of goods by persons except companies
