So the very famous, Federal Board of Revenue (FBR) recently initiated a survey of schools and other educational institutions to check if these schools have been registered with the income tax department.According to the details of the said matter, the Regional Tax Office (RTO) in Karachi have created the strategy of action they want to take on educational institutions for the rest of the current fiscal year.
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Furthermorethe tax office have put in place designated special teams who will visit the schools, Montessori/pre-schools, educational/tuition centers, and colleges to check their current tax status. These designated teams will initiate visits to these schools from 4th March, 2019.As per certain sources, many schools have been collecting a lot of money as fee in the name of quality education, without actually declaring their income. Moreover, the authorities have decided for the first time to check private tuition centers for their income and whether they are paying the right amount of tax or not.
FBR looking to bring Private schools under the Tax system
Moving on, Montessori schools have also been found to charge huge amounts of fee to the parents, but their contribution to the tax net is minimal, which simply does not add up. Therefore, the FBR has also decided to acquire details of the fee structure of schools from the provincial education department to verify the amount charged as the fee to the parents.The board have alsourged the parents of children to identify any schools who they think are not complying with the tax laws. It will also urge the parents to adjust or claim a refund against the tax withheld on payment of education fee.
