Law: Income Tax Ordinance, 2001

Section: 114,153

Law: Federal Tax Ombudsman Ordinance, 2000

Section: 2,2(3),9,10,11

Income Tax Ordinance (XLIX of 2001)---Ss. 114 & 153---Establishment of Office of Federal Tax Ombudsman Ordinance (XXXV of 2000), Ss.2(3), 9, 10 & 11---Defects in the electronic Income Tax Return---Complainant, a practising Advocate, in public interest complaint, had taken the issue of defects in the electronic Income Tax Return and contended that in the case of taxpayer providing services, such as Lawyers, Architects, Accountants, Doctors, etc. the electronic Income Tax Return I.T.2 (Return of Total Income/Statement of Final Taxation), provided misleading information to taxpayers---As a sequel to the amendments made in S.153 of Income Tax Ordinance, 2001, through Finance Act, 2009, all Professional income arising from rendering service became liable to be treated as regular income in Tax year 2010---Previous electronic Return Form for the year 2010 under-stated the tax payable by service-sector-taxpayer thereby resulting in loss to Revenue---Federal Board of Revenue had not devised any mechanism to recoup the revenue in service-sector-returns, filed up to October, 2010---Electronic Return placed on the Federal Board of Revenue Web Portal, prima facie, appeared to be defective, failing to report tax payable correctly in the normal course; one had to resort to various improvisations to get correct results; and it was not realistic to assume that such improvisations were within easy grasp of ordinary taxpayers with little or no technical background---Failure to design an electronic return that reported tax payable correctly in the case of taxpayers deriving professional income from service rendered, was indicative of its inefficiency and was tantamount to maladministration under S.2(3) of Establishment of Federal Tax Ombudsman Ordinance, 2000---Recommendations were made to Federal Board of Revenue to ensure that apparent defects in the electronic return placed on the Federal Board of Revenue Web Portal, were removed so that tax payable was correctly worked out when all the fields were filled out; to issue appropriate instructions for retrieval of any revenue lost in Service Sector Returns filed upto October, 2010 and to submit compliance report within 15…

Deprecated: trim(): Passing null to parameter #1 ($string) of type string is deprecated in /home/digixyei/sldsystempk.com/view/master-layout/view_case.php on line 492