FBR’s new amendment will increase transparency in the tax system

The Federal Board of Revenue (FBR) has proposed a major amendment to the Income Tax Rules 2002, announcing that electronic filing will now be mandatory for individual taxpayers.

According to the new draft, taxpayers will have to submit their income tax returns and withholding statements only online. The FBR has invited public suggestions and objections regarding this amendment within 7 days.

According to sources, the amendment has been made in Sub-Rule (2DD) of Rule 73, which aims to promote digital transparency and automated monitoring in the tax system.

According to the announcement, the FBR has also made integration mandatory for retailers.

Now, retailers paying withholding tax of more than Rs 100,000 will have to link their businesses with the FBR system.

Along with this, amendments have also been made in the Sales Tax Rules 2006, under which retailers with withholding tax up to Rs. 500,000 will also be included in the FBR digital system.

The notification clarified that this new law has been included under Section 150Q, while the integration process will be completed under Section 43A of the Sales Tax Act 1990.

According to FBR officials, this step will prove to be an important milestone in facilitating taxpayers, transparency of the system and identifying non-filers.