15% surcharge in online return PROBLEM

[daneyal13]

DEAR SIR/MADAM

While e-filing return they are taking the whole of net taxpayable's 3.5 months ratio to calculate flood surcharge again payable, this adds to heavy tax.

Like for contracts over the year the tax for full year comes to 500,000 excluding tax deducted by parties on surcharge for last 3.5 months,,, . In online return they are calculating surcharge payable in this way 500,000/12*3.5=total surcharge payable which infact was not deducted by parties as surcharge becoz they only deducted on te payments made in last 3.5 months, SO IF WE TAKE BALANCE OF THE SURCHARGE DEDUCTED BY PARTIES AND THE SURCHARGE CALCULATION IN ONLINE TAX RETURN , THE BALANCE IS AMOUNT IS QUITE HUGE IN MANY CASES, HOW COULD WE PAY THESE LARGE AMOUNTS.

pls tell the solution to remove this extra tax from online filing, and please also tell is this problem being conveyed and under discussion by business community with tax authorites.

[daneyal13]

PLEASE REPLY.

[student_of_law]

There is a little error in your post . According to current Income Tax Return, Surcharge payable won't be 500,000/12*3.5 but it would be [15% of 500,000/12*3.5]
Apart from this you are absolutely right. This is illegal. Law/ Ordinance imposing surcharge was promulgated on 15th March. It specifically made the law applicable from the date of its promulgation to June. FBR cannot charge surcharge on income accrued prior to March. It is illegal without any doubt.

Earlier FBR had rightly issued page 2 and page 3 separately for income before March 15 and after March 15, but afterwards owing to some irrational advice and foolish advisor, FBR applied surcharge on pro rata basis which is illegal.

We are writing to FBR on this tomorrow. <u>You all are advised to raise your voice, the least we can and we should do to safeguard our rights and to bring to limelight the unwise advisors to FBR.</u>

Second step would be filing writ petition before the High Court. We are considering this step and have put this before our clients who have been prejudiced by this act of FBR.

[daneyal13]

Thanku Sir, you have always been very kind.