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Extension in last date for tax incentive package likely

Extension in last date for tax incentive package likely

ISLAMABAD: The government is likely to extend last date of Prime Minister’s tax incentive package being expired on February 28 (Friday), by 15 days to one month to provide a last opportunity to the non-filer NTN-holders and unregistered persons to come into the tax net.

If the Finance Ministry gives concurrence to the proposal, the extension will be announced on Friday (today). However, if any decision is taken to this effect on March 1, it will be announced on the same day, depending on the Finance Minister’s decision.

The incentive package, applicable from January 1, 2014, will continue till February 28, which is the last date for availing the scheme. On the other hand, a positive response has been witnessed in Karachi where people have shown keen interest in the scheme during the last few days. It is correct that the FBR has received a number of presentations seeking extension in time period for availing the scheme. Keeping in view such large number of requests, more time could be provided to non-filers of income tax returns and persons operating out of the tax net.

With the aim to enhance income tax collection and simultaneously facilitating the existing taxpayers by providing an option to them to avoid tax audit, but the immunity from tax audit will be given to those taxpayers who pay 25 percent more tax for the Tax Year 2013 than the tax paid or assessed for the previous year.

Taxpayers who have already furnished their returns will be eligible to file revised returns to avail the facility. With the intention to increase the number of return filers, increase tax collection and to reduce the gap between the NTN holders and the return filers, an incentive was announced to encourage NTN holders who have not filed income tax returns during last five years to file their returns by exempting them from penalty, additional tax and audit if they file their missing returns of the last five years. However, immunity shall be available only if a minimum tax of Rs20,000 on the basis of taxable income has been paid.