FBR Withdraws Option of Common Serial Number in Finance Account

Using an amendment in Finance Bill 2021, the Federal Board of Revenue (FBR) removed the provision for a common identifier number.

The FBR established the common identifier number idea in Budget 2021-22 to facilitate corporate operations.

Ashfaq Tola, a tax expert's comment, says the National Database and Registration Authority, amended Finance Bill 2021, 2001 Revenue Tax Order, and 2002 Tax Rules, which state CNIC number is used as national tax identification number or registration number for individuals with a Computerized National Tax Card (CNIC).

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When registering on the FBR Iris website, a business and a person association (AOP) is issued a national tax number or registration number. The NTN, or Registration Number, will be utilised as the primary identifying number in the notifications given and the assessments made according to the Income Tax Ordinance 2001 for people as a number of 13 digits Computerized National Identification Card (NIC).

The concept of Common Identifier Number is proposed through the bill by the insertion of a new section 21B which provides that a computerised National Identity Card (CNIC) is produced for an individual by the National Database and Registration Authority (NDB) as an integration of the various portals used by FBR into one portal and an initiative to make business easier (STRN).

In the event of an association or company with a National Tax Number (NTN) which has been registered or liable to be registered in accordance with Section 14 from July 2021 onwards, NTN shall be a common identification number, whereby, in the case of individuals, CNIC and in other cases NTN are used primarily as identification in sales taxation procedures and also as notices.

The abovementioned provision was withdrawn by means of an amendment to the Finance Bill 2021.

The financial bill suggested restricting exemptions on debt withdrawal to a mere Rs. 500,000 and recommended taxing surplus profit amounts on the debt part of funds at a rate of 10%, which would be a distinct income block.

The amended finance plan, Ashfaq, has now withdrawn

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