Islamabad: The Karachi Tax Bar Association (KTBA) has asked the Federal Board of Revenue (FBR) to correct mistakes in the FBR’s online tax filing platform, news sources reported.
In a letter to the FBR, the bar has said that it has identified many mistakes and deficiencies in the FBR’s IRIS system related to the income tax filing mechanism. The letter has identified the following discrepancies in the system:
An inactive column for refund adjustment of genuine refunds to taxpayers.
Problems related to income attribution concerning minimum taxation under Section 153 of the income tax ordinance led to ‘unwarranted higher taxation on the same income of a taxpayer
The initial depreciation allowance on plant and machinery under Section 23
Erroneous calculation of the written-down value of assets — one calculated after accounting for depreciation or amortization
The adjustment of brought-forward capital losses on listed securities under the head of capital gains, due to which tax on capital gain could not be calculated correctly under Section 37A
Returns for small and medium-sized businesses completed without draft returns, as well as the value of properties used to compute considered income under Section 7E
Separately, the Lahore region’s chief commissioner of the FBR’s inland revenue division stated that the tax office is considering extending the deadline for filing returns. He stated that the decision is being considered since more and more tax filers are joining the system and require time to adjust to the additional tax scrutiny.
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