ASSESSMENT PROCEDURE: ILLUSTRATION 2

(a) Tax year of a company ended on 31.12.2009. It must furnish the return of income by 30.9.2010.

(b) Tax year of a company is from 1.4.2008 to 31.3.2009. It must furnish the return of income up to 31.12.2009.

(c) Tax year of a firm has ended on 30.9.2009. The return of income must be furnished up to 30.9.2010.

(d) Tax year of an individual who is doing business and who maintains books of accounts has ended on 30.6.2010. He must furnish the return of income by 30.9.2010.

(e) Income of an individual includes profit from an association of persons.

He does not maintain books of accounts. His tax year ended on 31.3.2009. Last date for furnishing the return of income will be 30.9.2009 Tax year of a salaried person ended on 30.6.2010. The return of income must be furnished up to 31.8.2010.

(g) Tax year of a businessman ended on 31.12.2008. He must furnish the return of income by 30.9.2009.

Extension for Furnishing the Return

The Commissioner of Income Tax has the powers to extend the date for fumishing the return provided that an application for extension in time is presented by the due date of furnishing the return. If on receipt of such an application Commissioner is satisfied that an extension is necessary because of the taxpayer’s absence from Pakistan, his sickness or other misadventure or any other genuine difficulty, the Commissioner will grant an extension of time for a period not exceeding fifteen days.

However, under exceptional circumstances justifying the delay, a longer extension of time may be granted by the Commissioner.

Invalid Return

The following instances illustrate the circumstances under which return furnished will be treated as invalid

(a) Return which is not signed and verified by the taxpayer or his authorized agent.

(b) Return not furnished in the prescribed manner or form.

(c) Non-furnishing of wealth statement along with the return of total income, if the total income of last year or present year is Rs. 5,00,000 or more.

(d) In case a taxpayer is not borne on the National Tax Number

Register, it is necessary that he should apply for such number along with his return of income, otherwise his return will be rendered invalid. The application for the number should be filed in the prescribed form.

Method of Furnishing Return

The return of total income should be furnished by registered post, with acknowledgement due, or delivered by hand, to the officer having jurisdiction over the case or any other officer who may be specified for this purpose by the Commissioner of Income Tax. The Board is empowered to frame rules for electronic filing of returns and other statements

Notice for Furnishing a Return of Income

If in the opinion of the Commissioner of Income Tax a person was chargeable to tax or was required to furnish the return of total income but has not furnished the return of income, he can issue such person a notice in writing to submit the return within a specific period of time (normally 30 days). Such a notice may be issued only in respect of last five tax years. The Commissioner can also require a person or his representative, as the case may be, to furnish a return for a period of less than twelve months if

(a) the person has died,

(b) the person has become bankrupt or gone into liquidation;

(c) the person is about to leave Pakistan permanently,

(d) the person is going to discontinue his business, or (e) the Commissioner considers it appropriate due to any other reason.

On receipt of notice, in any of the above case, it is necessary for the taxpayer to furnish the return.

Revision of Return

If a person after furnishing a return discovers any omission or wrong statement therein, he may furnish a revised return. It is necessary that such a return should be submitted within five years of the date on which the original return was furnished. However, he should:

(a) send the revised accounts or revised audited accounts with the return;

(b) the reason of revision of return in writing, duly signed must accompany the revised return, and

(c) the taxable income declared in the revised return is not less than under an order by tax authorities.

In case revised return is filed before receipt of any notice from authorities and tax short is paid, no penalty shall be imposed. If any of the above conditions is not fulfilled the revised return shall be treated as an invalid return as if it had not been furnished.

Penalty for Failure of Furnish the Return of Income

Where any person fails to furnish the return of income within the prescribed time and extension is not granted by the Deputy Commissioner of Income Tax as mentioned in section 119, the Commissioner shall impose penalty upon such person. The amount of Dfa Ho penalty will be equal to one tenth of one per cent of the tax payable for each day of default subject to a minimum of five thousand rupees and a maximum of twenty five per cent of tax payable in respect of that tax year.