Assessment Flashcards
Normal Assessment
Person furnishes
- complete return
- not revised return
assessment of said to be made
Complete Return conditions (7)
- Prescribed form
- Accompanied by annexures, statements, documents
- Fully state all relevant particulars/ information
- Duly signed
- Accompanied with - evidence of payment due
- Accompanied with - wealth statements, reconciliation statement
- Accompanied with - foreign income and asset statement as required
Assessment in case of Incomplete return (4)
- Taxpayer fails to fully comply by due date
- Return furnished would be treated as invalid return as if it was never furnished
- If taxpayer complies by due date, the new return furnished shall be treated to have been complete on the date the original was furnished
- Notice for incomplete return shall not be issued after expiry of 180 DAYS from end of FY in which return was furnished
Automated system process (5)
- Return processed through automated system for correct
- total income
- taxable income
- tax payable - by adjusting:
- arithmetic error (wrong incorrect calculation of tax)
- incorrect claim
- disallowance of loss, deductible allowance, credit
- disallowance of c/f of any loss - Before adjustment: system generated notice is issued to tp.
- Response from tp shall be considered for making adjustment
- If no response within 30 DAYS of notice, adjustments are MADE
IF NO ADJ MADE BY SYSTEM FOR 6 MONTHS, THE FURNISHED RETURN BY TP WOULD BE FINAL
Until when can CIR issue best judgement assessment order
- Issued within 5 YEARS from end of TY to which it relates
- Where person has not filed any return in last 5 years, then any of last 10 years’ return can be asked to be furnished from a NOTICE
- Best Judgement relating to notice year can be issued within 2 YEARS from end of TY of issuance of notice
Concealed asset
Any property/asset, which in opinion of CIR, is acquired from any income chargeable to tax but could not be charged to tax
Procedure of Best Judgement Assessment (6)
- Where person fails to:
- Furnish return in response to notice of CIR
- Furnish return required (as carrier or shipping companies)
- Furnish wealth statement required
- produce: accounts, documents, records required or any other document that CIR or audit panel may specify - CIR may make an assessment of taxable income & tax due based on any available info and best of his judgement
- Then any assessment treated to have been made (normal) by tp, shall have no legal effect
Components of best judgement order by CIR (4)
States:
- taxable income
- amount of tax due
- amount of tax paid (if any)
- time, place, manner of appealing against such assessment order
Procedure for Provisional assessment in certain cases
- Concealed/Offshore asset is impounded/discovered by agency of Fed/Prov
- CIR impowered to make provisional assessment before best judgement/amended/final assessment
- Impounded Concealed asset, taken into account for consideration for taxable income and tax due for last completed TY
Concealment of Income (4)
Includes:
- suppression of any item of receipt liable to tax
- failure to disclose income chargeable to tax
- claiming deduction/expenditure not incurred
- claiming income/receipt as exempt that is actually taxable
Assessment in relation to disputed property (3)
- Ownership of property generating taxable income
- IN dispute in any civil court in PAK
- assessment order in respect of that income issued within one year after the end of FY of decision of court
Assessment order shall be quashed or void (2)
- in substance and effect, not in conformity with ITO
2. Person assessed is not designated in the order according to common understanding
Order of assessment would be valid even if? (2)
- quashed or void or voidable for want of form
2. affected due to mistake, defect, omission
