The Federal Board of Revenue (FBR) has warned the defaulters of income tax returns owning vehicles of engine capacity above 1000 cc to file returns because failing to do so immediately would result in strict penal action.
According to the details, the Chairman of the Federal Board of Revenue (FBR) Syed Shabbar Zaidi in his tweet reiterated that all the vehicle owners of above 1000 cc engine capacity are required to file income tax returns. The department had previously issued a deadline of 30th November to file returns.
However, according to a circular issued by FBR, it was extended till 16th December 2019 to allow more people to come into the tax net for the Tax Year 2019 before the government starts to penalize. It is pertinent to mention here that the condition to file income tax returns was imposed under Section 114 of Income Tax Ordinance 2001. The condition is irrespective of owning a locally manufactured vehicle or an imported one. The person is required to declare the ownership of the vehicle and the source of income for the purchase of a vehicle.
In this regard, FBR has also collected the relevant information of vehicles purchased in the last five years from the motor registration authority and all the local auto manufacturers in the country. It has also gathered details regarding the imported vehicles of the specified engine capacity being purchased in this period from the customs authorities. Have a look at the tweet of the Chairman FBR, Shabbar Zaidi:
FBR reiterates that every person owning a car above 1000 cc and a house measuring 500 sq. yards or above is mandatorily required to file return of income irrespective of having any taxable income during the year. Penal actions will be taken against delinquents. Avail extension.
— Syed Shabbar Zaidi (@ShabarZaidi) December 2, 2019
In case the vehicle owners of above 1000 cc engine capacities fail to file their tax returns within the due date, a penalty equal to 0.1% of the payable tax amount will be charged. The maximum penalty in this regard will be 50% of the payable tax amount.
The government wants to bring more people into the tax net, and the general public is advised to register themselves for paying income tax returns before the extended deadline to avoid any penalty. That’s it from our side for now. Share your feedback in the given space below and stay tuned to PakWheels for more updates related to the automobile industry.