Mandatory condition of filing tax returns: FBR asks provinces, ICT to furnish plot owners’ data

ISLAMABAD: The Federal Board of Revenue (FBR) has asked four provinces as well as Islamabad Capital Territory (ICT) administration to share the required data of owners of plots with area of 500 square yard or flat in order to ensure compliance on mandatory requirement of filing of tax returns.

In an official letter written by Chairman FBR Shabbar Zaidi to Chief Secretaries of all provincial governments as well as Islamabad administration for sharing details about owners of real estate plots and flats within their jurisdictions. The FBR plans to broaden the tax base as it will have to achieve a gigantic task for collecting Rs5550 billion at a time when the FBR found it really hard to go close to the collection of last year figure of Rs3842 billion in fiscal year 2018-19.

The FBR has so far collected Rs3821 billion and it is hoped that Rs10 to 15 billion will be added more till finalising the revenue collection of the last financial year within next 10 to 15 days. It all indicates that the country is heading towards highest ever budget deficit in the country’s history during first year rule of PTI led regime. However the official figures of the budget deficit would be made public by end of the ongoing month.

In an official communication sent out by chairman FBR to Chief Secretaries in all provinces and sought their assistance for enforcing mandatory condition for filing of income tax return on those who own immoveable property or flat within their jurisdictions.

The official letter from the chairman FBR states that the Section 114 of the income tax Ordinance 2001 relating to filing of return of income states that every “person” who owns immovable property with a land areas of five hundred squares yards or more or owns any flat located in areas falling within the municipal limits existing immediately before the commencement of Local Government laws in the provinces or areas in a cantonment or the Islamabad capital territory.

Anyone who owns immovable property with a land area of five hundred square yards or more located in a rating area. Anyone owns a flat having covered area of two thousand square feet or more located in a rating area is required to file a return to income under the section 114 of Income Tax Ordinance 2001. He wrote that the information relating to ownership lied with the provincial governments. He suggested that a “focal person” must be appointed to coordinate on this matter as FBR intends to ensure proper compliance of law on this matter.