Taxpayers under the universal self-assessment method may enjoy some relief like submission of their revised returns and relaxed auditing of their tax files in the upcoming fiscal year.
Tax files of the taxpayers won't be audited or scrutinised in case of showing 15 per cent higher income than that of previous year. Currently, it is 20 per cent which many taxpayers found too high as annual income growth.
Taxpayers would be able to submit revised tax returns within six months of return submission if they found any fault in tax returns. They can even pay tax within that period in case of less payment with the tax returns.
However, a penal tax at a rate of 2.0 per cent per month would be imposed on the tax amount due to delay in full tax payment.
The government has moved an amendment to the related provision of the Income Tax Ordinance 1984 through the proposed Finance Bill 2017 placed before Parliament last Thursday.
Taxmen also impose restrictions on assessment of a tax file if it is selected for audit. Currently, taxmen can audit and assess tax files simultaneously.
They would not audit or ask any question on the disclosed source of initial capital of the business or profession of a new assessee if they show 20 per cent of the initial capital invested in the businesses and profession.
Also, the tax authority has made electronic Taxpayer Identification Number (TIN) mandatory for land--situated in City Corporation and district towns--purchaser, seller or power-of-attorney holder.
The new finance bill incorporated a detailed provision for the Deputy Commissioners of Taxes (DCT) on auditing of universal self-assessment tax returns.
Taxmen will have to communicate the taxpayers if they found any difference on paid tax and audited ones before issuing notice.
DCT will enclose the sheet of computation of income tax, refund or other related particulars that he prepared after processing the tax returns.
"Taxmen will have to give opportunity to the taxpayer concerned to explain his position in writing within the time specified in the notice where the process of return results in additional liability or in reduction of refund," the official said.
Taxpayers can file amended tax returns and left-out tax within the given timeframe of the DCT, he added.
A notice of demand would be served within six months of the serving of caution notice in case of not responding to the taxmen's query.
However, the DCT would not be allowed to amend tax returns after expiry of one hundred and eighty days from the date of filing the original return or if the original return already selected for audit.
The National Board of Revenue (NBR) introduced the universal self-assessment system in fiscal year (FY) 2007-08 in a bid to facilitate taxpayers in submitting tax returns on the basis of their own calculations. Currently, more than 95 per cent of the taxpayers submit their tax returns under the system.
doulot_akter@yahoo.com
