ISLAMABAD: Federal Board of Revenue (FBR) has withdrawn the option of provisional assessment by commissioner Inland Revenue if an individual doesn’t file income tax return in any tax year.
Finance Bill 2017 proposed to delete Section 122C of Income Tax Ordinance, 2001, which states: “Where in response to a notice under sub-section (3) or sub-section (4) of section 114 a person fails to furnish return of income for any tax year, the Commissioner may, based on any available information or material and to the best of his judgment, make a provisional assessment of the taxable income or income of the person and issue a provisional assessment order specifying the taxable income or income assessed and the tax due thereon.”
Budget 2017/2018 commentary of PwC Pakistan Chartered Accountants, said that the concept of provisional assessment, which was introduced in 2010 has been deleted. “However, in case the taxpayer fails to file a return, the Officer still has the power to frame a best judgement assessment under section 121 of the Ordinance.”
