Simplified ISL form issued The Federal Board of Revenue has issued a simplified form for payment of 0.5 percent Income Support Levy (ISL) on net movable assets above Rs 1 million for Tax Year 2013 to be submitted/deposited along with income tax return/wealth statement within extended time period, ie, October 31, 2013. In this regard, the FBR has issued Income Support Levy Rules, 2013 through an S.R.O.904(I)/2013 to notify the computation and payment form of ISL. According to the rules, the levy required to be paid under section 4 of the Income Support Levy Act 2010 shall be computed on the basis of valuation made under rule 5 in the Computation and Payment Form specified in the relevant Schedule. The computation and payment form shall be filed on the basis of the wealth statement under section 116 of the Ordinance as specified in Part IV of the Second Schedule to the Income Tax Rules, 2002. Time of payment of levy:- A person liable to pay the levy under the said Act shall pay the Levy on the basis of the wealth statement on or before the due date of filing of return. Where a person is not required to file return, the Levy shall be payable, along with wealth statement, at the time provided in sub-section (4) of section 118 of the Income Tax Ordinance, 2001. The rules said that the levy shall be payable in respect of net movable assets, exceeding Rs one million, held by a person on the last day of the tax year. The value of any movable asset shall, for the purposes of computing Levy, be the value as declared by the person in the wealth statement filed. The net movable assets means the aggregate value of movable assets declared in the wealth statement as reduced by the aggregate value of all the liabilities relating to movable assets, as owed by the person on the closing date of the tax year. Where the liability relates wholly and exclusively to a movable asset it is to be claimed and allowed as a straight deduction from aggregate value of movable asset. Where the liability relates to both, movable and immovable assets, and cannot be determined for the movable assets, the liability to be allowed shall be calculated by the following formula: (A/B) x C Where A is the aggregate value of movable assets; B is the aggregate value of movable and immovable assets; and C is the aggregate value of all liabilities which relate to movable and immovable assets. The levy under the Act shall be payable as determined in Computation and Payment Form as specified in the Schedule. Where a person is required to file the return electronically, Computation and Payment Form shall also be furnished electronically and where a person is not required to file the return electronically, Computation and Payment Form shall be furnished in the manner in which return is to be filed. Where a person is required to file a wealth statement under sub-section (1) of section 116 of the Ordinance, the levy shall be payable manually accompanied by the wealth statement referred to in rule-4, the FBR rules added.
Posted on: Wed, 09 Oct 2013 05:31:55 +0000
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