Sources said these education institutions were neither filing their income tax returns and statement under section 165 of the Income Tax Ordinance, 2001 nor deducting tax under section 149 of the Ordinance on the salaries being given to the teachers and staff. In addition, no tax is being deducted on supplies under section 153 of the Ordinance, providing serious financial shock to the national kitty.
Therefore, the department has started issuing notices under section 176 of the Ordinance to all unregistered schools, tuition centres and others for tax compliance, sources maintained. They further said that BTB Zone held meeting with the representatives of private school association for registration and filing of voluntary tax returns by the school, academics and tuition centres which were previously not enrolled in the tax net.
Sources said that during the meeting, representatives of private school association had assured the tax department to motivate its members for fulfilling their national obligation of filing of income tax returns. Replying to a question, sources said that BTB zone had obtained complete details of schools in terms of number of students in each class and fee charged and tax deducted under section 236(i) besides acquiring details of the salaries paid under section 149 of the Ordinance.