Amendment in the Income Tax Rules, 2002 regarding Apportionment of expenditures.

GOVERNMENT OF PAKISTAN
REVENUE DIVISION
FEDERAL BOARD OF REVENUE

Islamabad, the 20th July, 2016.

NOTIFICATION
(Income Tax)

S.R.O. 497(I)/2016.- The following draft of certain further amendments in the Income Tax Rules, 2002, which the Federal Board of Revenue proposes to make in the 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, as required by sub-section (3) of said section and notice is hereby given that the draft shall be taken into consideration by the Federal Board of Revenue after seven days of its publication in the official Gazette.

Any objection or suggestion, 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.

DRAFT AMENDMENTS

In the aforesaid Rules,

(1) in rule 13,-

(a) in the marginal note, after the word "expenditures" the comma and words ", deductions and allowances" shall be added; and

(b) in sub-rule (3), in clause (a), in sub-clause (C), after the word "expenses", the comma and words ", deductions and allowances" shall be inserted; and

(c) in sub-rules (1), (2), (4), (5) and (6), after the word "expenditures", wherever occurring, the comma and words ", deductions and allowances" shall be inserted;

(2) in rule 30, in sub-rules (2), (3) and (4), after the words "national tax number", wherever occurring, the words "or CNIC" shall be inserted;

(3) in rule 31, in the marginal note, after the word "salary" a comma shall be inserted;

(4) in rule 44, after sub-rule (4), the following new sub-rule shall be added, namely:-

"(5) Pursuant to sub-section (6) a person responsible for deducting tax under section 149 shall furnish or e-file annual statement by 31st day of the month July after the end of a financial year in the form set out in Part IX of the Second Schedule to these rules.";

(5) in rule 73, after sub-rule (2D), the following new sub-rule shall be inserted; namely:-

"(2DD) In case of an individual declaring taxable income one million rupees and more or turnover or receipts exceeding fifty million rupees electronic filing of income tax return and withholding statement shall be mandatory from the First day of July, 2016 onwards.";

(6) in rule 75, for the words "taxation officer", the words "officer of Inland Revenue" shall be substituted;

(7) in rule 76, under heading "TAX ASSESSED", serial (k) and (l) shall be omitted;

(8) in rule 77, for the words "Income Tax Office", the words "Inland Revenue Office" shall be substituted;

(9) in rule 122, in clause (f), for the words "taxation officer", the words "Officer of Inland Revenue or Inspector Inland Revenue" shall be substituted and for the full stop at the end a colon shall be substituted and thereafter the following proviso shall be added, namely:-

"Provided that the Commissioner Inland Revenue shall not delegate powers and functions under this Chapter to any Inspector Inland Revenue in respect of taxpayer having tax demand exceeding five million rupees.";

(10) in rule 194, in sub-rule (1), in clause (b), after the word "Revenue", the comma and words ", Inspector Inland Revenue" shall be inserted;

(11) in rule 211,-

(a) in sub-rule (1), under the heading "PARTICULARS", after serial 10, the following new serial shall be inserted, namely:-

"11. (i) Bank A/c No. ________________
(ii) Name of Bank________________
(iii) Branch________________";

(b) in sub-rule (2),-

(i) after clause (a), the following new clause shall be inserted, namely:-

"(cc) Details of Members/Trustees of the organization on the date of application.

(i) Name________________
(ii) CNIC________________
(iii) Income declared________________
(iv) Tax Year________________";

(ii) in clause (e), after the word "names", the letter, commas and words ", CNIC/NTN, Last income declared, tax year" shall be inserted;

(12) in rule 213, in sub-rule (2), after clause (e), the following new clause shall be added; namely:-

"(f) the names, CNIC/NTN, last income declared, tax year and addresses of the promoters, directors, trustees, president, secretary, treasurer, manager and other office bearers, as the case may be, of the organization, and indicating clearly their family relationships, if any, with each other.";

(13) in rule 214,-

(a) for the words "subsequent years", the words "subsequent three years or" shall be substituted;

(b) after the figure "217", the words "whichever is earlier" shall be added;

(14) in rule 217, in sub-rule (1), in clause (b), after sub-clause (viii), the following new sub-clause shall be added, namely:-

"(ix) the names, CNIC/NTN, last income declared, tax year and addresses of the promoters, directors, trustees, president, secretary, treasurer, manager and other office bearers, as the case may be, of the organization, and indicating clearly their family relationships, if any, with each other."; and

(15) in rule 220A, in sub-rule (1), in clause (b), for sub-clause (v), the following shall be substituted, namely:-

"(v) the names, CNIC/NTN, last income declared, tax year and addresses of the promoters, directors, trustees, president, secretary, treasurer, manager and other office bearers, as the case may be, of the organization, and indicating clearly their family relationships, if any, with each other.".

[F.No.1(37)Rules & SROs/2016]

(Syed Hassan Sardar)
Secretary (Rules & SROs)