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" LETTER FROM   LETTER FROM MAHBOOB SHEIKH & CO., CHARTERED ACCOUNTANTS TO CHAIRMAN, FEDERAL BOARD OF REVENUE   (Re: Hardship of Section 165 of Income Tax Ordinance, 2001)   The Chairman,   Federal Board of Revenue,   Islamabad.   SUBJECT: HARDSHIP OF SECTION 165 OF INCOME TAX ORDINANCE, 2001   Dear Sir,   Prescribed person is required to deduct tax under sections 149, 153 etc. and has to furnish a statement to Commissioner under sections 149 and 165 as the case may be:   Before June, 2010, prescribed person was obliged to furnish statement only if he has deducted the tax.   By Finance Act, 2010 section 165 was amended by insertion of a proviso:--   "Provided that every person as provided in subsection (1) shall be required to file withholding statement even where no withholding tax is collected or deducted during the period".   This amendment is made only to defeat the decision of higher courts and it has caused lot of inconvenience to the taxpayer. It is sheer wastage of time energy and money. The computer system of FBR is quite often out of order and it takes long to submit the information - a useless information.   Tax deducted and statement furnished can serve the…
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