ISLAMABAD: The Senate Finance and Revenue Committee held a detailed review of the 26 amendments moved by the Federal Board of Revenue (FBR) in Income Tax Ordinance 2001 for the federal budget 2018-19.
The committee also approved a large number of amendments proposed by the FBR in the Federal Excise and Taxation Ordinance 2018. The amendments moved by the FBR have been covered in Ordinance V of the 2018 promulgated on April 8, 2018 called the Income Tax (Amendment) Ordinance, 2018.
Although these amendments have been made part of constitution through ordinances yet they require to be made part of an act through their approval by the parliament along with the Finance Bill 2018.
The senate committee met here with Farooq H Naek in the chair to consider and finalize the recommendations on the Finance Bill 2018, containing the annual budget statement laid in the house on April 27, 2018, under the article 73 of the constitution and referred to the standing committee.
FBR has moved in the amendments that every resident taxpayer being an individual having foreign income equal to or in excess of ten thousand United States dollars or having foreign assets with a value of one hundred thousand United States dollars or more would have furnish a statement, hereinafter referred to as the foreign income and assets statement, in the prescribed from and verified in the prescribed manner giving particulars.
Under these amendments commissioner may, by a notice in writing, require any person being an individual, who in the opinion of the commissioner on the basis of reasons to be recorded in writing is required to furnish a foreign income and assets statement.
These amendments have also bound people to pay a penalty of 2% of the foreign income of value of the foreign assets for each year of default and it will become effective from July 01, this year.
Moreover, through these amendments of FBR, there will 35% rate of tax on taxable income of every association of person and 32% for tax year 2016 and onwards. The taxable income in a tax year, other than income on which the deduction of tax is final, does not exceed one million Rupees of a person.
Moreover, these amendments tax liability on such income shall be reduced by fifty per cent in case a taxpayer of the age of not less than sixty years on the first day of that tax year.
