Tax Book 2023

Returns and Assessments Chapter- 17

221 Rectification of mistakes

Different tax strategies

MCQ’S with solutions

ICMAP and CA mod C past papers theoretical questions

For CAF- 6 & ICMAP students)

In this chapter

CIR stands for Commissioner Inland Revenue

Assessment procedure

After finalization of accounts the taxpayer prepares and files income tax return with the tax department by
manual or on E. portal along-with required documents. After filing of income tax return the tax department
selects the cases for total audit or for amendment in assessment. The said process is named as
assessment process.

1. Who should file the return of income [Section 114(1)]

The following persons are required to furnish a return of income for a tax year, namely:-

(a) every company,  owns a flat having covered area of 2,000 square

feet or more located in a rating area;

(b) every person (other than a company)

whose taxable income for the year

exceeds the maximum amount not

chargeable to tax,

 owns a motor vehicle having engine capacity above

1000CC; and

(c) any non-profit organization, and  has obtained National Tax Number.

(d) Omitted  is the holder of commercial or industrial

connection of electricity where the amount of

annual bill exceeds Rs.500,000.

(e) every person whose income for the year is

subject to final taxation under any provision

of this Ordinance,

 is a resident person registered with any Chamber of

Commerce and Industry or any trade or business

association or any market committee or any

professional body including Pakistan Engineering

Council, Pakistan Medical and Dental Council,

Institute of Chartered Accountants of Pakistan or

Institute of Cost and Management Accountants of

Pakistan; or

(e) any person not covered in the above

clauses who,

 is a resident person being an individual required to

file foreign income and assets statement under

section 116A.

 has been charged to tax in respect of

any of the two preceding tax years;

 persons or classes of persons notified by the Board

with the approval of the Minister in-charge.

 claims a loss carried forward for a tax

year;

(1A) Every individual whose annual income under the

head ‘Income from business exceeds Rs.300,000

and others with annual income of Rs.400,000 in

a tax year are also required to furnish return of

income for the tax year.

 owns immovable property with a land

area of 50 0 square yards or more or

owns any flat located in areas falling

within the municipal existing immediately

before the commencement of Local

Government laws in the provinces; or