Thursday February 22, 2024

Tax returns set to hit 3 million mark

November 04, 2020

KARACHI: The Federal Board of Revenue (FBR) has received 380,000 returns for the tax year 2019 from the taxpayers during the last eight months mostly pronounced by economic shutdown related to coronavirus outbreak, and the number is set to touch the three million mark, sources said on Tuesday.

The number of return filers by February 29, 2020 for tax year 2019 was 2.53 million as per active taxpayers list (ATL) issued on March 1, 2020. It means the FBR added 380,000 more returns since then.

Number of income tax returns had been increasing despite coronavirus lockdown during the March-June period, according to the sources.

The filing of income tax returns reached a record high of 2.91 million for tax year 2019 and it is heading towards the three million mark.

The FBR received 2.91 million income tax returns for the tax year 2019, according to the weekly ATL updated on November 2.

The sources said the actual number will be much higher as many returns filed manually have not been added to the list. Further, returns filed without penalty after the due date are also not included, they added.

An official at Regional Tax Office said ATL for tax year 2019 is applicable till February 28, 2021 therefore the FBR will be able to log three million returns for the tax year at the end.

The previous high of return filing was recorded at 2.85 million for tax year 2018 as per taxpayers’ directory issued by the FBR last month.

The official said the measures taken by the FBR prompted people making huge transactions to file their income tax returns.

A taxpayer needs to file return and ensure his name on the ATL to take advantage of the reduced rate of withholding tax.

Through the Finance Act 2019, tenth schedule was introduced into the Income Tax Ordinance 2001 under which taxpayers not appearing on the ATL even after filing the return will be liable to pay 100 percent more withholding tax.

The FBR issues ATL on every year on March 1 on the basis of return filed by taxpayers by the due date for the relevant tax year.

The sources said the facilitation drive of the FBR will further encourage taxpayers to file their returns for the tax year 2020. The due date for income tax return filing for tax year 2020 is December 8 and ATL for the year would be issued on March 1, 2021 and remain applicable till February 28, 2022.