KARACHI: Tax practitioners have urged Federal Board of Revenue (FBR) to extend the last date for filing income tax return that is expiring on October 31.
Karachi Tax Bar Association (KTBA) in a letter to FBR chairman informed that:
(1) The form of Wealth Statement and Reconciliation Statement for e-filers and forms of Return of Income / Statement of Final Taxation, Wealth Statement and Reconciliation Statement on Excel Sheet for Manual Filers was finally prescribed vide S.R.O. 981(I)/2017 dated September 28, 2017.
(2) The form of Return of Income for Companies was prescribed vide S.R.O. 982(I)/2017 dated September 28, 2017.
(3) The time prescribed under various Sub-Sections of Section 118 of the Income Tax Ordinance, 2001 (herein after referred to as the Law) for manual / e-filing the Tax Return along with Wealth Statement for the Taxpayers falling under the FTR and salaried individuals is two months from the end of financial year i.e. August 31 and similarly three months from the end of financial year for business individuals i.e. September 30 and in the cases of certain companies also the last date of the filing the tax return is September 30 every year.
The time has presently been extended up to October 31, 2017 vide Circular No. 07 of 2017 (Income Tax) dated September 29, 2017 for all the cases mentioned at No. (3).
The KTBA said that the extension of time presently allowed only up to October 31, 2017 is not only insufficient but is also contrary and against the time stated and allowed by the law.
Since the above stated forms were finally notified on September 28, 2017, the last date of filing the return of income / statement of final taxation along with wealth statement should be, in our view, two months and three months respectively from the date of finally notifying the said forms, which criteria does not at all meet the presently allowed extension of time up to only October 31, 2017, which definitely needs to be extended further.
The KTBA further informed the chairman that many senior citizens having income from Bahbood Saving Certificates and/or Pensioner’s Benefit Account are presently reluctant in filing their Return of Income in view of the ambiguity created by the issuance of Circular No. 06 of 2017 (Income Tax) dated September 29, 2017 as they have to face very heavy tax burden, particularly in the cases of lower income and are awaiting further clarification in their favour.
