It has been made mandatory for all the taxpayers to provide details of the bank accounts or they will be excluded out of the active taxpayer's list (ATL).
An amendment in Section 114A of the Income Tax Ordinance, 2001 is proposed to be made in the finance bill 2020. As per this amendment, it has been made mandatory for all the taxpayers to update their profiles.
According to budget commentary issued by PwC A. F. Ferguson Chartered Accountants, all existing registered taxpayers as well as those who will obtain registration by September 30, 2020, will be required to file and update their tax profile by December 31, 2020, whereas other taxpayers will be required to file and update their profiles within 90 days of registration.
Also, any change in such a profile is required to be updated within 90 days of such a change.
Failure to file and update tax profiles in the above manner and within the prescribed dates could result in a taxpayer’s exclusion from active taxpayers list. However, such persons can be included back in active taxpayers list by filing the requisite information and paying the prescribed amount of surcharges.
Proposed new section 114A of Income Tax Ordinance is as follows:
114A. Taxpayer’s profile:
1.As per this section, the following persons shall furnish a profile:
- every person applying for registration under section 181;
- every person whose income is subject to final taxation
- any trust or welfare institution;
- Any other person prescribed by the Board.
- any non-profit organization as defined in clause (36) of section 2
- every person deriving income chargeable to tax under the head, “income from business”;
2.Taxpayers profile:
- shall be in the prescribed form and shall be accompanied by such annexures, statements or documents as may be prescribed;
- shall fully state, in the specified form and manner, the relevant particulars of:
- utility connections;
- types of businesses
- such other information as may be prescribed;
- bank accounts;
- business premises including all manufacturing, storage or retail outlets operated or leased by the taxpayer;
3.shall be signed by the person being an individual, or the person’s representative where section 172 applies
4. Shall be filed electronically on the web as prescribed by the Board.
5. A taxpayer’s profile shall be furnished:
- within ninety days registration in case of a person not registered under section 181 before the 30th day of September 2020.
-
on or before the 31st day of December 2020 in case of a person registered under section 181 before the 30th day of September 2020
6. A taxpayer’s profile shall be updated within ninety days of the change in any of the relevant particulars of information as mentioned in clause (b) of sub-section (2).”