01-26-2007, 02:44 PM
I am giving the answer in anticipation that u have asked the question regarding pakistani tax laws, as this is website of pakistani accountants. If u have asked in UK context, then ignore my reply...
In Pakistan after the introduction of voluntary return scheme, the tax authorities have to accept the tax return submitted by an individual, irrespective of its accuracy. The revenue department then picks on random basis, individuals and companies for audit purposes. So, they will accept whatever u show them without an evidence. But, if u claim any adjustment of advance tax paid on telephone or electricity or any other asset, then u will have to submit the bills or invoices...
But the first thing u have to assess is that whether u r liable to file a return of income or not...Following is the list of people who have to file a return...
(a)every company
(ab)every person (other than a company) whose taxable income for the year exceeds the maximum amount(Rs. 150K) that is not chargeable to tax under this Ordinance for the year;]
(ac)any non-profit organization as defined in clause (36) of section 2; and]
(ad)any welfare institution approved under clause (58) of Part I of the Second Schedule;]
(b)any person not covered by clause [(a), (ab), (ac) or (ad)] who,-
(i)has been charged to tax in respect of any of the two preceding tax years;
(ii)claims a loss carried forward under this Ordinance for a tax year;
(iii)owns immovable property with a land area of two hundred and fifty square yards or more or owns any flat located in areas falling within the municipal limits existing immediately before the commencement of Local Government laws in the provinces; or areas in a Cantonment; or the Islamabad Capital Territory.]
In Pakistan after the introduction of voluntary return scheme, the tax authorities have to accept the tax return submitted by an individual, irrespective of its accuracy. The revenue department then picks on random basis, individuals and companies for audit purposes. So, they will accept whatever u show them without an evidence. But, if u claim any adjustment of advance tax paid on telephone or electricity or any other asset, then u will have to submit the bills or invoices...
But the first thing u have to assess is that whether u r liable to file a return of income or not...Following is the list of people who have to file a return...
(a)every company
(ab)every person (other than a company) whose taxable income for the year exceeds the maximum amount(Rs. 150K) that is not chargeable to tax under this Ordinance for the year;]
(ac)any non-profit organization as defined in clause (36) of section 2; and]
(ad)any welfare institution approved under clause (58) of Part I of the Second Schedule;]
(b)any person not covered by clause [(a), (ab), (ac) or (ad)] who,-
(i)has been charged to tax in respect of any of the two preceding tax years;
(ii)claims a loss carried forward under this Ordinance for a tax year;
(iii)owns immovable property with a land area of two hundred and fifty square yards or more or owns any flat located in areas falling within the municipal limits existing immediately before the commencement of Local Government laws in the provinces; or areas in a Cantonment; or the Islamabad Capital Territory.]
