FBR decides to make tax system more stringent and digital

Automatic scrutiny system of tax returns will identify errors, inconsistencies and legal issues in returns by cross-matching various available data

Islamabad: Federal Board of Revenue (FBR) has decided to make tax system more stringent and digital.

In this regard, new conditions have been imposed for tax credit on integration, automatic scrutiny of returns and ATL, and Federal Board of Revenue (FBR) has also issued its formal notification.

According to details, in notification of large-scale new amendments in tax system by FBR, it has been decided to give tax credit on integrating business with FBR's computerized system.

According to notification, under Rule 33U of Income Tax Rules, for tax credit electronic system has to be purchased, installed and successfully integrated with FBR system in same tax year. In new system, certain one-time expenses of hardware, software, installation, configuration, interface development, testing and implementation will be able to be included in credit.

Furthermore, internet, telecommunication, salaries, training, routine operational cost, repair, annual maintenance and service charges will not be included, while discounts, rebates, refunds, grants and subsidies will be deducted from actual investment.

Tax credit can be taken in return of same year in which integration will be completed, while credit will not be given again on same expense. Automatic scrutiny system of tax returns will identify errors, inconsistencies and legal issues in returns by cross-matching various available data.