Internship Report on Federal Board of

Revenue
(Regional Tax Office Abbottabad)

Submitted by: Humma Khurshid

Registration # 10-A/COM-21
Supervised by: Sardar Ejaz Ahmed

Government College of Management

Sciences

Abbottabad
SESSION 2012-2013

Internship Report On
Regional Tax Office, Abbottabad (FBR)
Submitted by: Humma Khurshid
Roll # 109

This internship report is submitted in partial

fulfillment of the requirements for the degree of
Master of Commerce awarded by the Hazara
University

Government College of Management

Sciences
Abbottabad
SESSION 2012-2013

Government College of Management Sciences

Abbottabad

Approval sheet

Approval Committee

1.

External Examiner

_______________________________

2.

Supervisor

Mr. Sardar Ejaz

Professor

3.

Signature

Signature

Head of Department

Mr. Mushtaq Ahmed

(Principal)

Signature

Dedication
Dedicated to my parents, Teachers
&
All Friends
Whose Guidance enabled me
Achieving Objectives in Life, their Prays
Enlightened and Paved the way to success
God Bless them All...

ACKNOWLEGEMENT
All praise and gratitude due to almighty ALLAH who created man in His own image
and enjoyed upon him to travel on the earth and enter into a profound and analytical study of
Universe for spiritual appreciation of ALLAH unity and His attribute as well as for
harnessing the material manifestation of the world to the mankinds profit utilization. In the
first place, therefore we express our utmost thanks to ALLAH.
The work presented in this manuscript was accomplished under the inspiring guidance,
generous and enlightened supervision of Incharge Mr. Tariq Mehmood Federal Treasury
Officer, Data Processing Centre and Mr. Faisal Haroon, Assistant of DPC, Regional Tax
Office, Abbottabad. I express my gratitude to him for his scholastic and sympathetic attitude
in the completion of this Internship. I am very thankful to my supervisor Mr. Sardar Ejaz
Ahmed for his precious guidance.
I also thankful to Mr. Abdul Saeed, Supervisor of DPC and holding the additional
charges with Additional Commissioner (IR) Zone-II, Audit-I, RTO, Abbottabad who
benevolently extended all possible ways to smooth completion of this piece of work through
his expert guidance, sympathetic and encouraging attitude all the time. I also would like to
pay my heartiest thanks to all my honorable Incharge, Supervisor, who encouraged me in the
completion of my work.

Humma
Khurshid

Abbreviations
FBR-

Federal Board of Revenue

CBR-

Central Board of Revenue

LTU-

Large Tax Payer Unit

RTO-

Regional Tax office

NTN-

National Tax Number

STRN-

Sale Tax Registration Number

CPR-

Computerized payment receipt

HRM-

Human Resource Management

E & C-

Enforcement & Compliance

AW-

Audit Wing

LW-

Legal Wing

IR-

Inland Revenue

C.C

Chief Commissioner

e-filing-

Electronic Filing

EXECUTIVE SUMMARY
Although FBR is the one of the most important organizations and it is functioning
very efficiently and effectively. Federal Board of Revenue is a good Organization in the way
that anybody can join it for his/ her long-term career. Overall working environment is
comfortable. Management of Office cares a lot of its employees and considers them as the
Asset of the organization. Behavior of senior executives of organization is very polite and
they are caring about the individuals career and their growth.
However management is very demanding about the targets but good reward at the
achievement of assigned targets is awarded. Employees at Regional tax Office are quite
efficient. As the office is renovated and new employees are hired, its employees have to bring
their organization among the list of good organizations. Therefore, they work more than their
working hours and it is all according to their will. It also shows their loyalty, commitment to
organization.
Employees are given the benefits like bonus, gratuity funds, increments, and many
other facilities. All the customers are entertained individually. Same kind of behavior and
attention is given to all the customers. Getting ideas for improvement from employees side is
a new idea and that is working very well in the organization. All the employees are asked to
fill a suggestion form and the standards of the organization are improved through them.
Internship training at Regional Tax Office is a very rewarding experience. The
training was beneficial because it is helpful for me to be aware of real life working
environment.

ABSTRACT

The report covers all the area of the FBR that clearly show that how the FBR is working in
many tax areas. A comprehensive overview of the FBR is provided in terms of its history,
current status & operations. The data for report has been taken from books, through different
sites and practical training at RTO, FBR Abbottabad as well. The report shows the tax system
and revenue generations. FBR maintains its position as Pakistans premier Government Body
determined to set higher standards of achievements. Due to the induction of new ideas, the
FBR took the heights where that can give excellent services to Government. It is the major
organization for the Government of Pakistan with special emphasis on fostering Pakistans
economic growth through aggressive and balanced lending policies, technologically oriented
system and services offered through its large network of RTOs and LTUs.

TABLE OF CONTENTS

CHAPTER 1
INTRODUCTION OF THE REPORT

01

1.1 Background of the Study

01

1.2 Purpose of the Internship

01

1.3 Scope of Work

01

1.4 Source of data for Study

02

1.4.1 Primary Sources

02

1.4.2 Secondary Sources

02

1.5 Limitations

02

1.6 Merits of the Report

02

CHAPTER 2
INTRODUCTION TO FEDERAL BOARD OF REVENUE

03

2.1 Functions of FBR/ Revenue Division

03

CHAPTER 3
MISSION & VISION

07

CHAPTER 4
WORKING AREA OF THE ORGANIZATION

08

4.1 INCOME TAX

08

4.1.1 Personal

08

4.1.2 Corporate

08

4.1.3 Payroll

09

4.1.4 Inheritance

09

4.1.5 Capital gains tax

09

4.2 SALES TAX

10

CHAPTER 5
INCOME TAX LAW IN PAKISTAN

14

CHAPTER 6
OBLIGATION TO FILE INCOME TAX DECLARATIONS TAXPAYERS

20

CHAPTER 7
BASIC CONCEPTS OF TAXATION

23

CHAPTER 8
2012-2013 BUDGET REVENUE POLICIES TAX AND CUSTOMS

31

CHAPTER 9
2 BTB (BROADENING OF TAX BASE)

38

CHAPTER 10
PERSONAL EXPERIENCE IN DIFFERENT SECTION OF RTO, ABBOTTABAD

42

CHAPTER 11
RECOMMENDATIONS/SUGGESTIONS

45

REFERENCES

47