Rules in respect of prescribing time limit for notifying Income Tax Return forms

Government of Pakistan
Revenue Division
Federal Board of Revenue

Islamabad, the 13th October, 2020.

NOTIFICATION
(Income Tax)

S.R.O.1041 (I)/2020.- The following draft of certain further amendments in the Income Tax Rules, 2002, which the Federal Board of Revenue proposes to make in exercise of the powers conferred by sub-section (1) of section 237 of the Income Tax Ordinance, 2001 (XLIX of 2001), is hereby published for the information of all persons likely to be affected thereby and, as required under sub-section (3) of the said section 237, notice is hereby given that objections or suggestions thereon, if any, may for the consideration of the Federal Board of Revenue be sent within seven days of publication of the draft in the official Gazette. Objections or suggestions which may be received from any person in respect of the said draft, before the expiry of the aforesaid period, shall be considered by the Federal Board of Revenue, namely, -

DRAFT AMENDMENT

In the aforesaid Rules, after rule 34, the following new rule shall be inserted, namely:-

"(34A) Time limit for notifying income tax return form.- (1) This rule shall apply for the purpose of setting timelines in respect of various steps involved in notifying income tax return forms for a tax year.

(2) The return form specified in sub-rule (2) of rule 34 shall be notified for suggestions from all persons likely to be affected thereby on or before the first day of December of the financial year following the Finance Act to which the return relates by observing following timelines:-

(a) Inland Revenue Policy Wing shall identify the legal amendments to be incorporated in income tax return forms by thirty-first day of August of the financial year following the Finance Act to which the return relates;

(b) preparation of change request form (CRF) shall be finalized by Inland Revenue Policy Wing and Information Technology Wing, in consultation with PRAL, by fifteenth day of September of the financial year following the Finance Act to which the return relates;

(c) analysis and scrutiny of change request form (CRF) by Chief Income Tax Policy and Chief Business Domain Team shall be conducted by sixteenth day of September of the financial year following the Finance Act to which the return relates and the same shall be submitted to Member Inland Revenue Policy for approval on the same day;

(d) PRAL shall complete configuration and development of the approved CRF by thirty first day of October of financial year following the Finance Act to which the return relates; and

(e) User Acceptance Test (UAT) of the amended return forms on testing environment shall be finalized by Inland Revenue Policy Wing and Information Technology Wing, in consultation with PRAL, by fifteenth day of November of financial year following the Finance Act to which the return relates and the same shall be submitted to Member Inland Revenue Policy for approval on the same day.

(3) The Return Form shall remain available on the portal for suggestions till seventh day of January of financial year following the Finance Act to which the return relates.

(4) The final return form shall be notified on or before the thirty first day of January of financial year following the Finance Act to which the return relates by observing following timelines:-

(a) Inland Revenue Policy Wing and Information Technology Wing shall review the suggestions received from stakeholders by twelfth day of December of financial year following the Finance Act to which the return relates;

(b) a new Change Request Form (CRF), if required, shall be finalized by Inland Revenue Policy Wing and Information Technology Wing, in

consultation with PRAL, by tenth day of January of the financial year following the Finance Act to which the return relates and the same shall be approved by Member Inland Revenue;

(c) PRAL shall complete configuration and development of the approved CRF by fifteenth day of January of the financial year following the Finance Act to which the return relates;

(d) User Acceptance Test (UAT) of the final Return forms on testing environment shall be finalized by Inland Revenue Policy Wing and Information Technology Wing, in consultation with PRAL, by eighteenth day of January of the financial year following the Finance Act to which the return relates and the same shall be submitted to Member Inland Revenue Policy for approval;

(e) final income tax return forms shall be available on IRIS by the thirty first day of January of financial year following the Finance Act to which the return relates;

(f) in case, any further amendments are introduced in Finance Act that have an impact on the finally notified income tax return forms referred to at clause (e), such amendments shall be incorporated by seventh day of July of the financial year next following; and

(g) notwithstanding anything contained in this rule, the time so specified may, if requested by the Member Inland Revenue Policy, be extended by the Board to such extent and subject to such conditions and limitations as it may deem proper. ".

[F.No. 1(87)R&S/2020]

(Waqas Ahmed Bajwa)
Secretary (Income Tax Budget)