The Federal Board of Revenue (FBR) has introduced a convenient feature for taxpayers, allowing them to revise their income tax returns for the tax year 2023 without requiring approval from the Commissioner Inland Revenue. In response to concerns raised by the Karachi Tax Bar Association (KTBA), the FBR has provided a detailed explanation of the process. In this article, we will explore the key aspects of this new system and address the issues raised by the KTBA.
Revision of Income Tax Returns:
- Taxpayers who filed their Income Tax Returns for the year 2023 now have the flexibility to make revisions within a 60-day window. The best part is that this no longer requires approval from the Commissioner Inland Revenue. This user-friendly approach simplifies the process and allows taxpayers to correct any errors or make necessary adjustments hassle-free.
Data Availability Under Section 116A:
- One of the concerns raised by the KTBA was the non-availability of data under Section 116A (inner columns). However, the FBR responded by assuring that Section 116A data can be filed without any issue. If individuals encounter specific problems related to this section, they are encouraged to share the details with the FBR for further assistance.
Handling Salary Income and Business Receipts:
- The KTBA raised concerns about IRIS requesting profit & loss accounts, balance sheets, and account attachments for those with salary income and one-off service receipts. In response, the FBR explained that a separate salary return exists, but those with both salary income and business income under Section 153 (minimum tax) must include the profit & loss account, as per legal requirements.
SME Return and Tax Deductions:
- In the case of SME Returns, the association highlighted the absence of a tab to show tax deductions under Section 153 and other sections. The FBR clarified that the SME return is designed based on the notified form, and the issue reported is not a system-related problem. This ensures that SMEs can continue to file their returns smoothly.
Filing Returns on Behalf of Deceased Taxpayers:
- When dealing with the last return of a deceased taxpayer, legal heirs may be required to file the return. The KTBA suggested an improvement for the verification tab, allowing them to input the name and CNIC of the legal heir. The FBR, while acknowledging the suggestion, clarified that they have a separate process for marking the taxpayer as a deceased taxpayer.
Status of Members in Associations of Persons (AOPs):
- Lastly, the KTBA raised the issue of the incorrect status of members in the tab for Associations of Persons (AOPs), where members were listed as directors instead of partners or members. The FBR confirmed that this issue has already been resolved, ensuring accurate representation.
Conclusion:
The FBR's electronic system has made it easier for taxpayers to revise their Income Tax Returns for the year 2023 within 60 days, eliminating the need for Commissioner approval. The concerns raised by the Karachi Tax Bar Association have been addressed, and the FBR has provided clarifications and solutions where necessary. This streamlined approach should ease the tax-filing process and enhance the experience for taxpayers.
