Following are the technical measures that have been announced by Federal Board Of Revenue (FBR) in Budget 2018-19:
- Time limit for taking cognizance of concealed income arising outside Pakistan:
Awareness of disguised wage earned/emerging in Pakistan can be taken within five years from the end of the financial year in which the return of salary is documented as far as far as possible depicted under area 122 of the Income Tax Ordinance, 2001. An alteration has been made in area 111(2) of the Income Tax Ordinance, 2001 whereby disguised pay earned/emerging from outside Pakistan might be exhausted in the expense year before the time of disclosure of such unexplained income or resource.
- Foreign remittances through normal banking channels:
Preceding the declaration of the Income Tax (Amendment) Ordinance, 2008 a man was not required to clarify the nature and additionally the wellspring of any measure of remote trade which is transmitted from outside Pakistan through typical keeping money channels and hence encashed into Pakistani Rupees by any planned bank .To demoralize whitening of untaxed cash and legitimizing tax sidestepped livelihoods through this conductor, amendment has been made in segment 111(4) of the Ordinance whereby people would be required to clarify the wellspring of speculation if the measure of outside settlements in a year surpasses Rs.10 million.
- Furnishing of Foreign Income and Assets Statement:
Another area 116A has been embedded whereby it has been made required for occupant people to furnish an outside salary and resources articulation along with return of income if such individual procures remote wage proportional to or surpassing USD 10,000/ – or is the proprietor of outside resources having an esteem equal to or surpassing USD 100,000-. The foreign pay and resources articulation should contain particulars/insights with respect to add up to remote resources and liabilities (as on the most recent day of the Tax Year) and additionally subtle elements of remote resources exchanged to someone else amid the assessment year and thought got in lieu of such exchange. Finish particulars of outside wage earned and the uses brought about for procuring such salary might likewise be furnished through this announcement.
- Return of Income to be filed mandatorily by a person required to furnish Foreign Income and Assets Statement:
On the off chance that an individual meets the conditions stipulated in segment 116A of the Income Tax Ordinance,2001 as for winning of remote pay or responsibility for resources, such individual should compulsorily be required to document return of Income Tax along with foreign salary and resources articulation as far as segment 114(2)(f) of the Ordinance.
- Time limitation for issuance of a notice calling for return of income in case of foreign income /assets:
Through the Income Tax (Amendment) Ordinance, 2018 a stipulation has been included sub-area (5) of segment 114 whereby as far as possible for issuance of a notice calling for return should not have any significant bearing if the Commissioner is fulfilled based on motivations to be recorded in composing that a man who neglected to furnish his arrival has income pay or claims remote resources.
- Penalty for failure to furnish Foreign Income and Assets Statement:
A man who neglects to outfit Foreign Income and Assets proclamation inside the due date might likewise ,be liable to require of punishment of 2 percent of the foreign pay or estimation of the remote resources for every time of default under area 182 of the Income Tax Ordinance, 2001.
- Purchase of property by non-filers:
Non-filers shall be prohibited from purchasing property having declared value exceeding Rs.4 million.
- Purchase of new motor vehicles:
Non-filers shall not be permitted to purchase new motor vehicles manufactured in Pakistan or new imported vehicles.
- Time limitation in best judgment assessment:
Notice to embellish a return of pay under area 114(4) of the Income Tax Ordinance, 2001 can be issued for at least one of the last ten finished tax years to a man who has not recorded return of wage for any of the last five tax years. Notwithstanding, by and by best judgment evaluation under segment 121 of the Ordinance must be made throughout the previous five years .Necessary alteration has been made whereby best judgment appraisal under area 121, in the previously mentioned case can be made inside two years from the end of the tax year in which notice to file return of pay has been issued.
- Legal cover to electronic service of notices:
Necessary amendment has been made in section 218 of the Income Tax Ordinance, 2001 to grant legal sanctity to service of notices through electronic mode.
- Builders and Developers specified as withholding agents:
People and AOP’s having turnover of Rs. 50 Million or above in a Tax Year are obliged to go about as withholding specialists while making installments for merchandise, administrations and contracts under area 153 of the Income Tax Ordinance,2001. Manufacturers and Developers have now particularly been incorporated into the ambit of withholding charge specialists with the end goal of segment 153 of the Ordinance paying little mind to the quantum of their turnover.
- Allowing credit of tax to companies as per their share in an AOP:
In situations where an organization is an individual from a relationship of people, the organization needs to document a different return in regard of its offer of salary in the AOP. Notwithstanding, tax is deducted for the sake of the AOP and the organization can’t assume praise of tax deducted against pay announced by the organization. Keeping in mind the end goal to mitigate the hardship of organizations being individuals from an AOP, fundamental revision has been made to empower organizations to assume praise of tax deducted for the sake of the AOP in an indistinguishable extent from the offer of the organization in the benefits of the AOP.
- Exemption from capital gains on disposal of immovable property by dependents of Shaheeds:
Capital gains at a bargain of steadfast property by a ward of a Shaheed having a place with Pakistan Armed Forces and in addition ward of a man who kicks the bucket in administration of Pakistan Armed Forces or Federal or Provincial Government is burdened at the rate of 0 percent independent of the holding time frame. Be that as it may, zero percent rate is relevant to people said in sub-area (4) of segment 236C which was overlooked through the Presidential Order dated 31.08.2016. Fundamental alteration has been made to guarantee concede of exclusion to wards of the above people as initially planned.