ISLAMABAD (September 19 2003): The income tax returns filed by taxpayers (Individuals/AOPs) without proper declaration of accounting method or containing any omission in “verification” would not form the only basis for audit selection under the Universal Self Assessment Scheme (USAS).
The CBR gave this relaxation on persistent demand of business community to waive these conditions pertaining to audit.
CBR secretary assessment Waqar Ahmed recently issued an order to all the regional commissioners of income tax that the non-declaration of method of accounting/omission in verification should not be the only criteria for selection of cases for audit.
According to the directive, the Board has received a number of queries as to whether instances, in which either “method of accounting” has not been declared, or there is any omission in “verification” regarding maintenance of books of accounts in the return of income for Tax Year 2003, would form basis for selection of cases for audit or not?
The matter has been examined in the Board and it has been decided that non-declaration of the “method of accounting” and any omission in “verification” part of the return of income regarding maintenance of books of accounts in the return of income for Tax Year 2003 would not be considered as the only ground for selection of cases for audit.
The RCITs and CITs should forthwith issue necessary instructions to all the taxation officers for immediate compliance of these instructions, Waqar added.