ISLAMABAD: Another issue regarding online Income Tax Return form is creating problems not only for the taxpayers, but also for Federal Board of Revenue (FBR).
According to tax lawyer Waheed Shazad Butt, the Income Tax Return form for Tax Year 2014, that has been uploaded on the FBR website having computerised formulas and taxpayer’s due tax liability, would cause a huge loss to national exchequer. Shazad Butt has raised the issue before the Federal Tax Ombudsman (FTO) through filling a representation.
“Income Tax Return form has a problem where the embedded code for computation of income tax liability for taxpayers placed in the Services Sector category having income/receipt liable to minimum tax under section 153(1)(b) of the Income Tax Ordinance, 2001 is defective and consequently their tax calculation is understated,” the lawyer said.
He said that due to universal self-assessment scheme through which the return would be accepted when filed, would lead to a significant loss of tax revenue. “There is the added risk that such returns may be picked up for audit in case short payment of tax is criteria for selection of returns for audit,” he added.
