Returns and Assessments Chapter- 17
areas in a Cantonment or the Islamabad
Capital Territory;
owns immoveable property with a
land area of 500 square yards or more
located in a rating area;Rating area: In this section rating area has not been defined but its means urban area where provinces tax
applies.
Example: Briefly explain which of the following persons are required to file a return of income for the tax
year 20 23 :
a) ABC (Pvt.) Ltd. was incorporated on July 02, 201 6 and there was no activity during tax year 20 23.
b) XYZ Ltd was incorporated in tax year 20 23 and incurred loss during the tax year.
c) C Ltd was incorporated in tax year 20 23 and taxable income of the company during the year was Rs.
454,000.
d) Mr. Ikram (NTN holder) is a salaried individual and his salary income during the tax year is below
taxable limit.
e) Mr. Jamal is a non-salaried individual, his business income during the tax year is below taxable limit.
He has not obtained NTN certificate.
f) An individual owns an 800 CC motor vehicle.
g) Mr. Amir incurred loss in his business during the tax year. He wants to carry forward this loss.
h) Mr. Zahid (NTN holder) is 75 years old. He is living with his son and has no source of income.
i) Mr. Khan owns a property with the land area 550 square yards located in a non rating area.
j) Non-profit organisation or welfare institution.
k) Mr. Shahzad owns a flat having covered area 1900 square feet located in a rating area.
Solution:- In all three cases from (a) to (c) company is required to file return of income irrespective of its
commencement of business of profit or loss. - In case of (d) as Mr. Ikram has obtained NTN certificate so he is required to file return of
income irrespective of his income. - In case of (e) Mr. Jamal is not required to file return of income as his income is below taxable
limit and he has not obtained NTN certificate. - In case of (f) individual is not required to file return as engine capacity of the vehicle owned by
him is not exceeding 1000 CC. - In case of (g) Mr. Amir is required to file return of income as he is claiming loss to be carried
forward. - In case of (h) Mr. Zahid is required to file return of income as he is NTN holder.
- In case of (i) although area of the land is more than 500 square yards however the same is not
in the rating area therefore Mr. Khan is not required to file return of income. - In case of (j) every non-profit organisation is required to file return of income, however welfare
institution are no more required to file their income tax returns unless any other condition to file
the income tax return is applicable under this section. - In case of (k) Mr. Shahzad is not required to file return of income as covered area of flat owned
by him is less than 2000 square feet.
1.1 Requirements to file a return [Section 114(2)]
A return of income
shall be in the prescribed form and shall be accompanied by annexures, statements or
documents,