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Taxation Managment

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Taxation Management ­ FIN 623
VU
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
(c) Shall be signed by the person, being an individual, or the person's representative where section 172
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;
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Taxation Management ­ FIN 623
VU
(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;
(c) Any assets transferred by the person to any other person during the period or periods specified in
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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Table of Contents:
  1. AN OVERVIEW OF TAXATION
  2. What is Fiscal Policy, Canons of Taxation
  3. Type of Taxes, Taxation Management
  4. BASIC FEATURES OF INCOME TAX
  5. STATUTORY DEFINITIONS
  6. IMPORTANT DEFINITIONS
  7. DETERMINATION OF LEGAL STATUS OF A PERSON
  8. HEADS OF INCOME
  9. Rules to Prevent Double Derivation of Income and Double Deductions
  10. Agricultural Income
  11. Computation of Income, partly Agricultural,
  12. Foreign Government Officials
  13. Exemptions and Tax Concessions
  14. RESIDENTIAL STATUS & TAXATION 1
  15. RESIDENTIAL STATUS & TAXATION 2
  16. Important Points Regarding Income
  17. Geographical Source of Income
  18. Taxation of Foreign-Source Income of Residents
  19. Exercises on Determination of Income 1
  20. Exercises on Determination of Income 2
  21. SALARY AND ITS COMPUTATION
  22. Definition of Salary
  23. Significant points regarding Salary
  24. Tax credits on Charitable Donations
  25. Investment in Shares
  26. SALARY AND ITS COMPUTATION EXERCISES 1
  27. SALARY AND ITS COMPUTATION EXERCISES 2
  28. SALARY AND ITS COMPUTATION EXERCISES 3
  29. Tax treatment of Gratuity
  30. Gratuity Exercise
  31. PROVIDENT FUND
  32. Exemptions on Business income, Treatment of Speculation Business
  33. Deductions Allowed & Not Allowed
  34. Deductions: Special Provisions, Depreciation
  35. Methods of Accounting
  36. Taxation of Resident Company
  37. Taxation of Companies: Exercises
  38. Computation of Capital Gain
  39. Disposals Not Chargeable To Tax
  40. TAX RETURNS & ASSESSMENT OF INCOME UNIVERSAL SELF ASSESSMENT SCHEME
  41. Normal Assessment, USAS, Provisional Assessment, Best Judgment Assessment
  42. ADVANCE TAX COLLECTION & RECOVERY OF TAX PENALTIES & PROSECUTION
  43. What is Value Added Tax (VAT)?
  44. SALES TAX
  45. SALES TAX RETURNS