Records

Question 1

How is a taxpayer required to maintain records as per ITO?

Answer 1

Maintain accounts, documents and records as may be prescribed:

1. CIR may disallow or reduce a tp’s claim if he is unable (without reasonable cause) to provide a
   - receipt
   - other record
   - evidence
   of transcations or circumstances giving rise to claim for deduction
2. Accounts and documents required to be maintained:
   - shall be maintained for 6 YEARS after the end of TY to which they relate
   - maintained for as long as pending proceeding before any authority is going on
3. CIR may require any person to install and use an Electronic Tax Register (type and description - prescribed)
   - for purpose of storing and accessing info regarding any transaction having bearing on tax liability

Question 2

Deduction

Answer 2

Any amount debited to trading account, manufacturing account, receipt and expenses account, or PNL

Question 3

Pending proceedings (7)

Answer 3

• proceeding for asmt/amd of asmt
• appeal
• revision
• reference
• petition
• persecution
• proceeding before an ADRC

Question 4

Records to be maintained by every tax payer deriving IFB (4)

Answer 4

1. Sums of money received and expended
2. Sales and purchases of goods and services
3. Assets of TP
4. Liabilities of TP
5. Items of cost relating to utilization of materials, labour, and other inputs

Question 5

Records to be maintained by taxpayer with only business income upto 500,000

Answer 5

1. Serially numbered and dated cash-memo/invoice receipt for each transaction of sale or receipt
2. Where each transaction < Rs. 100, one or more cash-memos per day for all such transactions
3. Daily records of receipts, sales, payments, purchases, expenses
4. Vouchers of purchases and expenses

Question 6

Records maintained by TP with IFB > 500K and wholesaler, distributor, dealer, commission agents

Answer 6

1. Serially numbered and dated cash-memo/invoice receipt for each transaction of sale or receipt
2. Tax payer’s name and business name, address, NTN/CNIC, sales tax registration number
3. Description, Quantity, Value sold or services rendered
4. Cash book/bank book/ daily records of receipts, sales, payments, purchases and expenses (a single entry)
5. General ledger or annual summary of RecSalPaymPurExp under distinctive heads
6. Vouchers of purchases and expenses where single transactions > 10,000 with name and address of payee

Question 7

Records to be maintained by Professionals like Docs, lawyers, CAs, architects etc

Answer 7

1. Serially no.d and dated cash-memo/ invoice receipt for each transaction of sale or receipt
2. Daily appointment and engagement diary
3. Daily record of RecSalPayPurExp (single entry)
4. Voucher of purchases and expenses

Question 8

Records for Income from Salary

Answer 8

Salary certificate indicating amt of salary and tax deducted

Question 9

Records for IFP

Answer 9

1. Tenancy agreement
2. Tenancy termination agreement
3. Receipt for amount of rent received
4. Evidence of deductions claimed in respect of
   - premium paid to insure
   - building
   - local rate
   - charge
   - cess
   - ground rent
   - profit/interest
   - share in rent
   - money borrowed
   - expenditure on collection of rent
   - legal services
   - unpaid rent

Question 10

Records for Capital Gain

Answer 10

1. Evidence for cost of acquiring capital asset
2. Evidence for deduction for any other cost claimed
3. Evidence for consideration received on disposal of capital assets

Question 11

Records for IFOS

Answer 11

1. Dividend warrants
2. Royalty agreement
3. Evidence and detail of profit yielding debt
4. Evidence of profit on debt and tax deducted thereon
5. Evidence of Zakat deducted