TAX RETURNS & ASSESSMENT OF INCOME UNIVERSAL SELF ASSESSMENT SCHEME

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Taxation Management FIN 623

MODULE 15

LESSON 15.40

TAX RETURNS & ASSESSMENT OF INCOME

UNIVERSAL SELF ASSESSMENT SCHEME

Tax Return:

Return is prescribed document for submission of taxable income by taxpayer. Specimens of Return to be

submitted by different taxpayers are designed by CBR under Income Tax rules, 2002.

Persons Required to File Returns

a) Every Company:

Every person (other than company) whose taxable income exceeds the initial threshold as provided

under the ordinance (However, companies to submit return & pay minimum tax even in case of loss @

0.50% of annual turn over)

b) Every Person:

Charged to tax for any two preceding years

Claims loss that is carried forward

Owns immovable property, with a land area of 250 Sq. yards or more in municipal limits, cantonment

and CDA

A return of income shall be:

(a) Prescribed form along with required documents.

(b) Fully state all relevant particulars or information as specified in the form of return, including a

declaration of the records kept by the taxpayer; and

applies.

A return of income can also be filed electronically. (e- Filing of return)

Returns on Notice by Commissioner

The Commissioner may, by notice in writing, require a person, or a person's representative, as the case may

be, to furnish a return of income by the date specified in the notice for a period of less than 12 month,

where-

The person has died;

The person has become bankrupt or gone into liquidation;

The person is about to leave Pakistan permanently.

· The commissioner may require any person to file a return of income, if in the opinion of the

commissioner, a person is required to file a return for a tax year but he failed to do so. The person on

whom the notice is served shall file return within 30 days from the date of service of notice.

· In case of any omission by a tax payer, a revised return can be filed within 5 years of the date that the

original return was furnished.

Person Not Required to File Tax Return

Section 115 grants immunity to salaried person in lieu of filing a return as outlined below:

Salary certificate from employer sufficient in lieu of return

Other Exceptions: Sec-115

Widow

Orphan below age of 25 years

Disabled person or

In case of ownership of immovable property, a non-resident person

Further Exceptions

All persons subject to final tax regime/PTR u/s5, 6, 7, 113A, 148, 153, 154, 156, 156A, 233 or 235(5) shall

furnish to CIT a statement showing such particulars relating to person's income for tax year in such form

and verified in such manner as may be prescribed.

Filing of Wealth Statement (Sec. 116)

The Commissioner may, by notice in writing, require any person to furnish, on the date specified in the

notice, a statement (hereinafter referred to as the "wealth statement") in the prescribed form and verified in

the prescribed manner giving particulars of:

(a) The person's total assets and liabilities as on the date or dates specified in such notice;

Taxation Management FIN 623

(b) The total assets and liabilities of the person's spouse, minor children and other dependents as on the

date or dates specified in such notice;

such notice and the consideration for the transfer; and

(d) The total expenditures incurred by the person, and the person's spouse, minor children, and other

dependents during the period or periods specified in the notice and the details of such expenditures.

· Every resident taxpayer filing a return of income for any tax year (whose last declared or assessed

income, is five hundred thousand rupees or more) shall furnish a wealth statement for that year along

with such return.

· Where a person, who has furnished a wealth statement, discovers any omission or wrong statement

therein, he may, without prejudice to any liability incurred by him under any provision of this

Ordinance, furnish a revised wealth statement at any time before an assessment, for the tax year to

which it relates, is made under sub sec (1).

Sec. 117--Discontinuance of Business:

Return to be filed within 15days of discontinuance.

· Where NTN is not already registered /allotted/ issued taxpayer shall apply on prescribed form for

NTN at the time of furnishing return of income.

Provision of Revised Tax Return:

A person may furnish Revised Return within five years of the date when the original return was furnished.

Extension in time for furnishing returns and other documents:

If commissioner is satisfied that applicant is unable to furnish returns and other documents by due date

because of the following reasons, he can grant extension for 15 days from the due date , however, under

exceptional circumstances, a longer extension of time can also be granted.

Longer extension in time can be granted in the following situations:

Absence from Pakistan

Sickness or other misadventure; or

Any other reasonable cause

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