Returns Flashcards
Persons liable to file a tax return (15)
- Every Company
- AOP + Individual with taxable income exceeding min limit
- NPO
- Person whose income is subject to FTR
- Persons/classes of persons notified by FBR w/approval of minister
Additionally, person who:
1. has been charged to tax in any of last two years
2. claims loss of c/f for a tax year
3. owns immovable property:
- land (>500sqyds)
- flat
within municipal limits, areas of cant, ISB capital
- In rating area:
- land (>500 sqyds)
- flat (>2000sqft) - owns MV (+1000CC engine)
- has NTN number
- holder of commercial/industrial meter with annual bill > 500k
- Resident person registered with any chamber of commerce and industry/ trade/business association/ market committee/ professional body
- Resident individual required to file foreign income and assets statement
- IFB > 300k but does not exceed 400k
Legal implications of not declaring bank account
ONLY SOLE PROPRIETOR, AOP are req to declare business bank account on FBR e Portal
If not declared:
1. Expense incurred = inadmissible while computing IFB
Persons not liable to file a tax return having things that make one liable
DOWN:
1. Widow
2. Orphan <25 years old
3. Disabled person (on CNIC)
4. Non resident person
When can CIR give notice to furnish a return for period of less than 12 months? (4)
Circumstances (4) Procedure (2)
- Died person
- Bankrupt/ liquidated person
- About to leave Pakistan permanently
- CIR may consider it appropriate to require such return to be furnished
- To furnish a return within 30 days (or for longer or shorter period as specified) from date of such notice
Notices issued by CIR to furnish a return (3)
- For period less than 12 months
- For one or more of any of the last five completed tax years
- For one of more of any of the last 10 completed tax years if person has not furnished any in last five.
- To furnish a return within 30 days (or for longer or shorter period as specified) from date of such notice
- Time limitation not applied if valid reasons in writing satisfy the commissioner that person has foreign income/owns foreign assets
Conditions to furnish revised returns (4)
OR
Conditions not fulfilled to make it invalid return
- Accompanied with revised accounts/ revised audited accounts
- reasons for revision of return in writing duly signed
- accompanied by approval of CIR:
- Approval not required if:
- revised return is filed within 60 days of filing of return. - Revised taxable income not less than or loss declared not more than income or loss
Amount of tax, default surcharge and penalties to be paid along with revised return, if:
- Revised return before receipt of notice of audit
Tax short paid/ evaded plus default surcharge, but NO PENALTY
Amount of tax, default surcharge and penalties to be paid along with revised return, if:
- Revised return during audit before the show cause notice of amendment of assessment
Tax pointed by CIR + Default surcharge + 25% PENALTY
Amount of tax, default surcharge and penalties to be paid along with revised return, if:
- Revised return after issuance of show cause notice of amendment of assessment
Tax Evaded + Default surcharge + 50% of Penalty
Tax return on discontinuance of Business (4)
- shall give CIR in writing within 15 days of discontinuance
- furnish return of income for period starting from 1st day of tax year till date of discontinuance (separate tax year)
where taxpayer does not give notice of discontinuance and CIR has grounds to believe:
- Business has been discontinued
- likely to be discontinued
then CIR may serve notice to furnish a return within stipulated time or 30 days
Due Dates of filing tax return
- Notice issued [for person liable to file return OR discontinuance of business] :
Due date mentioned or 30 days - Individual/AOP: 30 September
- Company w/year end (1 july - 31 dec): 30 sep
- Company w/year end (1 jan - 30 june) : 31 dec
Consequences of not filing returns by due date (4)
- Name is removed from active taxpayer’s list
- Losses cannot be carried forward
- cannot claim refund or additional refund for that period
Procedure of extension of time for tax return (4)
- Person may apply in written for extension
- before due date of filing return
- Extension may be granted if CIR is satisfied that taxpayer was unable to do so because of:
- absence from PAK
- sickness/ misadventure
- any other reasonable cause - extension should not exceed 15 DAYS from due date. (could increase in exceptional cases)
