ISLAMABAD:Filing of Income Tax Returns (ITRs) has improved significantly during Tax Year 2020, a statement by the Federal Board of Revenue said. 1.768 Million Taxpayers filed their Income Tax Returns before the deadline of December 8, 2020 while the tax received by FBR stood at Rs. 22 Billion by this date.
The number of Filers has further increased to 2.316 Million along with the tax collection rising up to Rs. 43.6 Billion till January 4, 2021 as compared to 2.181 Million filers along with the tax collection of Rs.28 Billion during the corresponding period of the previous year, showing an increase of 55 percent in tax collection in current year, it added. It is also mentionable here that the number of Income Tax Returns filed after the deadline of December 8, 2020 remained 0.547 Million along with the tax collection of an amount worth Rs. 22 Billion approximately.
FBR has launched a number of initiatives for the facilitation of taxpayers that have resulted in the increased number in filing of Income Tax Returns. FBR will issue the updated list of Active Taxpayers after 1st March 2021 and only those taxpayers will be included in the list who have filed their Income Tax Returns for Tax Year 2020. Enlistment in Active Taxpayers List comes with a variety of benefits for taxpayers that include exemption from Withholding Tax in a number of financial transactions and withholding of tax at half of the rate on many other financial transactions carried out by non-filers i.e those not on Active Taxpayers List.
Possible legal action on account of concealment of income based of tax withheld on any financial transaction. It may be noted that the amount of fine on late filing increases in proportion with the delayed period of time. FBR has urged all taxpayers to file their Income Tax Returns at their earliest to get their names enlisted in the upcoming