ISLAMABAD - The city managers have deducted the whole year’s income tax at once from May 2012 salary of CDA’s employees, as earlier the Federal Bureau of Revenue recovered Rs 180 million outstanding dues after attaching the Capital Development Authority bank accounts against outstanding liabilities.

The amount of Rs180 recovered by FBR from CDA accounts was meant to pay the monthly salaries of employees.
To fix the gap the Finance Wing of the authority, which was not deducting income tax from the salaries of its employees, decided to withdraw past 12-month income tax from salary of May 2012 at one time.
Earlier, Large Taxpayers Unit (LTU) of the Federal Bureau of Revenue (FBR) has recently frozen some 33 accounts of the Capital Development Authority (CDA) for outstanding liabilities amounting to Rs720 million. The FBR after attaching all bank accounts of the CDA for the amount it owed to the exchequer in income taxes has recovered some Rs180 million from CDA accounts.
The CDA was served with recovery notices time and again under Section 138 of the Income Tax Ordinance 2001, to deposit the outstanding liabilities, which it failed to do so. Following that the Chief Commissioner, LTU Islamabad had formed teams to recover the amount from CDA through attachment of bank accounts.
Chairman Capital Development Authority (CDA) Engineer Farkhand Iqbal while talking to TheNation criticised the FBR’s action saying the authority would move the appropriate forum against the decision. “It was a strange move on the part of FBR, as CDA provides municipal services to residents free of cost and thus not entitled to pay any sort of tax to FBR,” Iqbal said.
“CDA would file writ against the forceful deduction of Rs180 million from CDA accounts,” he added.