The Federal Revenue Council (FBR) has issued a legal clarification that “paid individuals” are not required to update their “tax profile”.
Salaried individuals are not required to update their tax profiles, according to an FBI statement to the Lahore-based accounting firm. However, anyone applying for registration under Article 181 EStG 2001, including those with salaries, must update their tax profile.
The ability to review changes defined in the control profile to post changes to the account, FBR supports.
Electronic intermediaries have the ability to update the taxpayer’s tax profile. However, electronic intermediaries need to be appointed by taxpayers to update the tax profile, FBR added.
Through the Income Tax Circular 8 of 2020, FBR has extended the final date for submitting tax profiles to 31 March 2021.
According to the FBR circular, when exercising the powers conferred under Section 214A of the 2001 Income Tax Ordinance, FBR extended the last date for the renewed submission of the tax accounts to be deposited under Section 114A until March 31, 2021
FBR has also published a user guide (account renewal in accordance with Section 114A EStG 2001) for taxpayers. Under the law, a taxpayer profile includes income-related information about bank accounts, utilities, premises including manufacturing, storage or commercial facilities operated or leased by the taxpayer, types of business and other information that the board of directors may determine.
If a person does not submit or update the tax profile within the date or time extended by the council under Article 214A, that person will not currently be placed on the active taxpayer register for the last tax year ended or before the aforementioned date. extended date.
The provisions for filing a “taxpayer account” apply to certain categories of taxpayers, i. H. Person applying for registration, person receiving taxable income under the “Business Income” section, income subject to income tax, non-profit organizations and trusts or social institutions.
Trusts, charities and nonprofits registered before 30 September 2020 and whose business or income is subject to final tax are required to file a tax profile on or before 31 December 2020. The “Tax Profile” will be sent electronically in the specified format as shown in the IRIS web portal.
However, upon submission or renewal of the account, these persons are allowed to be registered as active taxpayers after paying the allowance, which is Rs. 20,000 for the company, Rs. 10,000 for gatherings and Rs. 1000 for individuals.
According to FBR, individuals who accept their registration after 30 September 2020 will be offered to provide such accounts within 90 days of registration. When data changes, these people update their profiles within 90 days of the data change.