FAISALABAD: The Income Tax clause of 214D has been converted into 214E under amended Finance Bill of 2018, providing an opportunity to taxpayers to show 32 percent enhancement in their taxable income to avoid an audit of their accounts.
This was disclosed by Chief Commissioner Inland Revenue Muhammad Tariq while addressing an awareness session at the Faisalabad Chamber of Commerce and Industry (FCCI) here Friday.
He said that 1.2 million cases were picked for audit which was practically impossible in prevailing circumstances.
Hence, this new clause had been added as the Income Tax returns will be accepted without any condition of audit if the taxpayers will enhance its taxable income up to 32 percent.
Muhammad Tariq said that a software had been developed and people could avail this online opportunity up to December 31 this year.
“It will not only facilitate taxpayers, but the government will also get sufficient additional revenue from this head,” he added.
He said earlier there was no proper system for income tax audit but now it had been decided that audit would be allowed only after three years of the previous audit.
About one window scheme, he said that it would be replicated with few amendments very soon.
An officer will check applications and mark all objections only once and its application will be disposed of within three days if there was no need for verification.
Regarding Alternate Dispute Resolution Committee (ADRC), he said that it would be reconstituted and the FCCI would be given due representation in it.
About sales tax refund cases, he said that refund cases up to Rs100,000 would be paid at the RTO level while refund with huge amount would be released subject to the decision by the government.
He said that no doubt the government was also interested in clearing the pendency of refund claims.
Regarding Turnover Tax, he said that there was no alternative but to conduct an audit of these cases in the present circumstances.
However, in order to settle the chronic cases of yarn markets, grain markets and Kariyana a separate committee could be constituted to settle down genuine cases.
About extension in filing tax returns, he said that decision in this regard could be made in light of pending cases within the prescribed date.
However, awareness campaigns had already been launched with a display of banners, streamers and distribution of pamphlets.
He added that for the convenience and taxpayers, another session at a large scale could also be arranged at the FCCI.
He assured that proposals to make the tax returns form simple in the Urdu language would also be floated.
Earlier, Syed Zia Alumdar Hussain, the President FCCI, delivered the welcome address.
FCCI Senior Vice President Mian Tanveer Ahmed, Vice President Engineer Ihtesham Javaid, Jawwad Asghar, Rana Sikandar Azam, Rana Ikram Ullah, Chaudhry Talat Mehmood, Yusuf Vohra, Haji Talib Hussain Rana, Muzzamil Sultan, Secretary General Abid Masood and Chaudhary Muhammad Asghar were also present.
Later, former president Ashfaq Ahmed Sheikh presented an FCCI shield to the Chief Commissioner Inland Revenue.