The Federal Board of Revenue (FBR) has issued a legal clarification thatthe ‘salaried individuals’ are not required to update their ‘Tax Profiles’.
According to an FBR clarification issued to the Lahore-based charteredaccountant firm, the Salaried Individuals are not required to update theirTax Profile. However, every person applying for registration under section181 of the Income Tax Ordinance 2001, including Salaried Individual, isrequired to update the Tax Profile.
The option to verify changes has been given in Tax Profile for submissionof changes made in the Profile, FBR maintained.
The e-intermediaries have been enabled to update the Tax Profiles ofTaxpayers. However, e-intermediary needs to be nominated by Taxpayer toupdate the Tax Profile, FBR added.
Through an income tax circular 8 of 2020, the FBR has already extended thelast date of submitting the Taxpayer’s Profile by up to March 31, 2021.——————————
According to the FBR’s circular, in the exercise of the powers conferredunder Section 214A of the Income Tax Ordinance, 2001, the FBR has extendedthe last date of furnishing of Taxpayer’s Profile required to be submittedunder Section 114A ibid up to March 31, 2021.
The FBR has also issued a user guide (profile update under Section 114A ofthe Income Tax Ordinance, 2001) for the taxpayers. Under the law, thetaxpayer’s profile contains information relevant to income regarding bankaccounts, utility connections, business premises including allmanufacturing, storage, or retail outlets operated or leased by thetaxpayer, types of businesses, and such other information as may beprescribed by the board.
Presently, if a person fails to furnish or update a taxpayer’s profilewithin the due date or period as extended by the board under Section 214A,such person shall not be included in the active taxpayers’ list for thelatest tax year ending before the aforesaid due date or extended date.
The condition for submission of the “Taxpayer’s profiles” covers certaincategories of taxpayers, i.e., persons applying for registration, personsderiving income chargeable to tax under the head, “income from business,”income subject to final taxation, non-profit organizations, and any trustor welfare institution.
Those registered before September 30, 2020, having business income orincomes subject to final taxation, trusts, welfare institutions, andnon-profit organizations are required to file taxpayers’ profile on orbefore December 31, 2020. The “taxpayer’s profile” shall be filedelectronically in the prescribed format as provided on the IRIS Web Portal.——————————
However, upon filing or updating the profile, such persons shall be allowedto be placed on the active taxpayers’ list upon payment of the surcharge,which is proposed to be Rs. 20,000 in the case of a company, Rs. 10,000 inthe case of an association of persons, and Rs. 1,000 in the case of anindividual.
The FBR said that the persons who obtain their registration after September30, 2020, are proposed to furnish such profile within 90 days ofregistration. In case of any change in particulars of information, suchpersons shall update their profile within 90 days of the change inparticulars.