Friday, 7 February 2014

Define the term Assessment and explain the procedure of filling the return under the income tax ordinance. Who should file the return and when it should be submitted

Assessment :-
It means a complete scrutiny of the information’s provided by the taxpayer  in his return.
So the work assessment has the following meanings in the income tax ordinance.
(i). To compute the total income.
(ii). To compute taxable income.
(iii). To compute the tax.
(iv). To compute the refund.
(v). To adjust the loss or to carry forward of loss.

Assessment Officer :-
Deputy Commissioner income tax of that area where principal place of business is situated will make the assessment.

Step 1 : A person files the return of his total income.
Step 2 : Assessment is made and tax payable is computed.
Step 3 : Tax payer makes the payment.
Step 4 : If tax payer is defaulter then recovery proceedings is taken against him.
Step 5 : If excess amount is paid by the taxpayer then excess tax is refunded.

How The Return Is Finished :-
(i). It is necessary for certain persons that they should inform the tax deportment about the total income which they have earned during the year.
(ii). They will also show that income which is exempt from tax.
(iii). All the information’s they will provide at the end of the year.
(iv). All those details they will provide on the prescribed form which is called return.
(v). Businessman also includes the income statement, balance sheet and any other document required in the form.
(vi). This form return should be signed by the person or his representative.
(vii). When the form which is technically called return is duly completed and submitted to the income tax authorities, it is called furnishing the return of income.

Who Should File The Return :-
Following persons are required to submit the return according the income tax ordinance.
(i). Every company.
(ii). Any person whose income is chargeable to tax.
(iii). Any person who has been charged tax in any of the 4 proceeding income years.
(vi). Any person who traveled abroad.
(v). Any person who owns a motor vehicle.
(vi). Any person who is owner of immovable property with land area 250 square or mors.
(vii). Every person who is subscriber of a telephone.
Note : In the above cases (, a widow, a disabled, orphan below 25 years are not required to file the return.

When One Should File Return :-
According the following schedule a taxpayer should file the return.
  1. Companies :- If the tax year of the company ends between 1st January to 30th June then income return should be submitted up to 31st December of the same year.
  2. Other Persons :- All other taxpayers should submit the return up to 30th September next following end of their tax year.
  3. Business Discontinued :-  If the business discontinued by any person and commissioner has issued the notice to furnish the return then he will submit the return according the date of notice.

Extension Of Date :- The period of filling the return can be extended up to 15 days by the commissioner income tax. But this time can be extended if reason of not submitting the return is genuine sickness or absence from country.

Exception :- In some exceptional cases it can be extended for a longer period.

How Return Should Be Submitted :-
A tax payer can submit the return in the following way.
(i). It may be sent by registered post to the concerned officer.
(ii). It may be delivered by hand.

Issuance Of Notice :-
The commissioner income tax can issue the notice for the submission of return to any person with in a specified period. Some time the commissioner finds that such person income was chargeable to tax but he has not submitted the return. So this action is taken by him. The notice can issued only in respect of last five tax years.

Change In Return :-
In the following case return can be revised.
(i). The return of total it can be revised by the taxpayer before the submission.
(ii). After filling the return a taxpayer discovers any mistake or wrong statement it can be revised.


Post a Comment

Google+ Followers

  © Blogger template Blue Surfing by Trade Cycle 2014

Back to TOP