The Federal Board of Revenue’s (FBR) field formations have started a physical survey of business units, corporate entities, and companies falling within the jurisdiction of Islamabad, to collect details of owners of commercial buildings, rental payments, and verify payment of withholding tax on rent.
On Tuesday, teams of the Regional Tax Office (RTO) Islamabad visited different markets of the federal capital and distributed forms for the collection of the necessary information on the spot. The form seeks business details, rent payments, and building owner details, etc. The physical survey of business establishments of the federal capital will continue during the current week.
According to the survey teams, the information has been collected from the businesses under section 176 of the Income Tax Ordinance 2001. The proforma collects information regarding particulars of the business, payment of rent, and deduction of tax thereon under section 155 of the Income Tax Ordinance 2001. The survey will also ascertain the timely and accurate deduction and payment of withholding tax to the national exchequer.
The information on the said proforma should be submitted with a rent agreement or proof of ownership, in case the building is not on rent.
The information is collected under section 176 of the Income Tax Ordinance 2001 with the due permission of Commissioner Withholding Taxes, RTO Islamabad. In case of non-compliance, a penalty under section 182(9) of the Income Tax Ordinance 2001 will be imposed.
Under the penal provision, any person who fails to furnish the information required or to comply with any other term of the notice served under section 1765 [or 108] of the Income Tax Ordinance 2001, shall pay a penalty of Rs. 25,000 for the first default and Rs. 50,000 for each subsequent default.
The concerned inspector has been deputed to gather information after taking due permission of the Commissioner Inland Revenue, survey notice added.