KARACHI: The number of active taxpayers dropped 14 percent to 2.18 million for the tax year 2020 as many return filers were unable to file returns within due date, sources said on Monday.
The Federal Board of Revenue (FBR) issued the new Active Taxpayers List (ATL) for tax year 2020 on March 1. The new ATL has 2.18 million names of taxpayers who file their returns for tax year 2020. However, this number is less than the ATL 2019, which carried 2.53 million active taxpayers.
The last date for filing income tax return for tax year 2020 was December 8, 2020 in case of business individuals, salaried persons and companies with special years, which was extended from September 30, 2020. However, for the tax year 2019 the date was extended up to February 25, 2020.
A day earlier, the FBR claimed to receive 2.62 million income tax returns by February 28, 2021. It means the FBR has received 440,000 returns that were filed after due date or failed to pay surcharge for appearing in the ATL 2020.
The FBR introduced the concept of ATL through Finance Act, 2010. Since then persons were allowed to appear on the ATL even filing the return after due date without payment of any surcharge.
The appearance of the taxpayer's name ensures exemption of withholding taxes on various transactions besides reduction of 50 percent amount of withholding tax on many other transactions.
However, through an amendment through Finance Act, 2019 a major change was introduced and return filers after due date were denied to appear on the ATL.
The appearance of taxpayers on the ATL linked with filing of income tax returns either by due date or after payment of surcharge in case returns were filed after due date.
The surcharge amount as per the Income Tax Ordinance, 2001 is Rs20,000 for a company, Rs10,000 for an association of persons, and Rs1,000 in case of an individual.
Tax experts said the FBR should allow the income tax returns filed after the due date without fine and penalty and also without surcharge to appear on the ATL.
A tax practitioner at the Karachi Tax Bar Association said the FBR had agreed to waive fine and penalty and surcharge for persons who file their returns after the due date.
However, FBR made it clear that harsh action had been started against persons having taxable income but not filed their income tax returns, the tax practitioner added.
Nissan Motor CEO Makoto Uchida and Honda Motor CEO Toshihiro Mibe attend press conference in Tokyo. —...
Samiullah Siddiqui, Chairman PAIB committee and council member ICAP addressing the event. —...
The representational image shows a person holding gold necklaces. — AFP/FileKARACHI: Gold prices rose by Rs2,100 per...
President-elect US President Donald Trump speaks to attendees during a campaign rally at the Mosack Group warehouse in...
A representational image of a tax files. — Pixabay/FileLAHORE: The notion that Pakistan’s corporate sector is...
President of the Karachi Chamber of Commerce & Industry Muhammad Jawed Bilwani can be seeen in this photo released on...