Govt proposes relief for widows, orphans & disabled

Filing of income tax returns

ISLAMABAD: The Finance Bill 2017/18 has proposed to provide relief to widows, orphans, and disabled persons under certain conditions with regards to filing of income tax returns, The News has learnt. 

According to details, currently, section 114 of Income Tax Ordinance (ITO) requires those persons, among others, to file return of income, who own immoveable property with a land area of 500 square yards or more located in a rating area, a flat having covered area of 2,000 square feet or more located in a rating area, and a motor vehicle with an engine capacity above 1,000CC.

Keeping in view the problems faced by the financially compromised segments of society, the government, in the finance bill, has proposed to relieve those widows, orphans, and disabled persons from the aforementioned requirement, who are solely required to follow it because of the above mentioned conditions.

However, section 119 of ITO empowers the commissioner to grant extension in time for filing of return or other documents. Furthermore, the finance bill also advises to empower chief commissioner to grant such extension if the same is not granted by the commissioner.

As per section 121 of ITO, the commissioner is authorised to make the best judgment assessment on the basis of available information in certain circumstances. 

The bill further purports to widen the power of commissioner to make the best judgment assessment in the event of a taxpayer’s failure in complying with the notices of commissioner to file return of income.

As per section 121 of ITO, the commissioner has the power to make a provisional assessment on the basis of available information if a taxpayer fails to comply with the notices of commissioner to file return of income.

The finance bill has also suggested the omission of the section as the provisions of this section are proposed to be embedded in section 121 of ITO. 

Another impact of this omission will be the eligibility of taxpayer to file an appeal, as currently no appeal may be filed against an order under section 122C.

The government has also decided to write off outstanding House Building Finance Corporation (HBFC) loans to be paid by the widows. Finance minister Ishaq Dar told a news conference on Saturday that loans of Rs 250,000 to Rs 300,000 obtained by them since 1999 would be written off and the matter had been discussed with the HBFC.