The Federal Board of Revenue (FBR) has withdrawn the provision of Common Identifier Number through an amendment in the Finance Bill 2021.
In budget 2021-22, the FBR has introduced the concept of Common Identifier Number for promoting ease of doing business.
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According to the commentary of the tax expert, Ashfaq Tola, on the amended Finance Bill 2021, under Income Tax Ordinance, 2001, and Income Tax Rules, 2002, individuals having Computerized National Identity Card (CNIC) issued by the National Database and Registration Authority, CNIC number being used as Tax Identification National Tax Number or Registration Number.
A company and an association of persons (AOP) are assigned a National Tax Number or Registration Number when they e-enroll on the FBR Iris portal. In the case of individuals, 13 digits Computerized National Identity Card (CNIC) number will be used as NTN or Registration Number and used as the main identification number in notices issued and assessments made under the Income Tax Ordinance 2001.
As a step towards integration between various portals used by FBR into one portal and an initiative for ease of business, the concept of Common Identifier Number is proposed through the bill by inserting a new Section 21B whereby from 1st July 2021 and onwards, in the case of an individual, having Computerized National Identity Card (CNIC) issued by the National Database and Registration Authority, registered or liable to be registered as per Section 14 of Act, CNIC shall be common identifier number in addition to sales tax registration number (STRN).
From the tax period July 2021 and onwards, in case of an association of persons (AOP) or company, having National Tax Number (NTN), registered or liable to be registered under Section 14, NTN shall be common identifier number, whereby CNIC in case of individuals and NTN in other cases shall be primarily used as an identifier in sales tax assessment proceedings and notices also.
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Through an amendment in the Finance Bill 2021, the said provision has been withdrawn.
The Finance Bill proposed to restrict exemption on withdrawal of the amount of profit on debt up to Rs. 500,000 only and proposed to tax excess amounts of profit on the debt portion of funds at the rate of 10 percent as a separate block of income.
The Amended Finance Bill has now withdrawn the above proposal, Ashfaq Tola added.
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