Tax Book 2023

Method of Accounting and Records Chapter- 11

A taxpayer accounting for income chargeable under the head "Income from Business" may

maintain additional records, add further columns or particulars in the forms or may keep such

records in the manner that suits to the taxpayer's business.

In this chapter:

 "Legal practitioner" includes an advocate, pleader, tax practitioner and advisor or consultant

on income tax, sales tax, customs, central excise or salt tax laws.

 "Medical practitioner" includes a doctor, surgeon, physician, dentist, psychiatrist,

physiotherapist, tabib, homeopath, vaid, veterinarian and any person practicing medicine under

any other name.

Books of account, documents and records to be maintained [Rule 29]

Every taxpayer deriving income chargeable under the head "Income from business" shall maintain

proper books of account, documents and records with respect to -

 all sums of money received and expended by the taxpayer and the matters in respect of which

the receipt and expenditure take place;

 all sales and purchases of goods and all services provided and obtained by the taxpayer;

 all assets and liabilities of the taxpayer; and

 in case of a taxpayer engaged in assembly, production, processing, manufacturing, mining or

like activities, all items of cost relating to the utilization of materials, labour and other inputs.

If a taxpayer uses fiscal electronic cash register or computerized accounting software, it may issue

cash-memo/invoice/receipt generated by the electronic cash register or computer.

Duplicate copies and electronic or computer records of the cash-memo / invoice / receipt / patient-slip

to be issued, shall be retained by the taxpayer and form part of the records to be maintained.

The books of account, documents and records to be maintained for 6 years after the end of the tax

year to which they relate.

The above 6 years record provision shall not apply where any proceeding under the Ordinance is

pending before any authority or court the taxpayer shall maintain the record till final decision

of the proceedings.

The following are the various Rules regarding books of account to be maintained by various
taxpayers.

S.

No.

Class of tax payers Rule

1 Taxpayer with business income up to Rs. 5 00,000 or a new taxpayer 30(1)

2 Taxpayer with business income exceeding Rs. 5 00,000 30(2)

3 Professionals 30(3)

4 Manufacturers having turnover more than Rs.2.5 million 30(4)

5 Electronic Tax Register (ETR) 30A

6 Non business taxpayers 31

1. Taxpayer with business income upto Rs. 5 00,000 or a new taxpayer [Rule 30(1)]

Serially numbered and dated cash-memo / invoice / receipt for each transaction of sale or receipt

containing the following:

 taxpayer's name or the name of his business, address, NTN, CNIC and sales tax registration

number, if any; and

 the description, quantity and value of goods sold or services rendered;

Provided that where each transaction does not exceed Rs.100, one or more cash-memos per day for

all such transactions may be maintained;