FTO Directs FBR to Issue Explanatory Circular for Rebate

The Federal Tax Ombudsman (FTO) has directed the Federal Board of Revenue (FBR) to issue a detailed income tax explanatory circular for guidance of all concerned seeking tax rebates for full time teachers. The FBR should make an unambiguous decision explicitly providing in the law that this rebate was lawfully available till the tax year 2024. The FTO has issued these instructions to the FBR after receiving complaints for not allowing tax rebates admissible to full time teachers under sub-clause (2) of clause (1) of Part-III of the Second Schedule of the Income Tax Ordinance 2001. According to an order of the FTO received at the FBR here on Wednesday, the FBR must update the withholding regime (section 149) by amending the PIFFRA module across the country. The FBR has been directed to allow the rebate to the complainant up to Tax Year 2024 in the light of various decisions by the President of Pakistan in identical cases. The FBR should issue authentic version of all laws it administers with complete legislative history so that the correct position of laws for any period is available, FTO’s directions added.