|
|
 |
|
|
|
|
Universal Self Assessment
and Income Tax Ordinance, 2001
|
Income Tax Ordinance, 2001 was
promulgated on 13th September 2001. It shall
come into force on July 01, 2002 and will be
applicable from the said date. The new
income tax law is in simple language and is
easy to understand. You can now prepare your
income tax return and compute your tax
liability without any difficulty.
The new income tax law will bring a complete
change in the philosophy of income tax
proceedings and it will make life easier.
The salient features are:
-
No assessing officer will determine your
income and compute your tax liability.
Now you will yourself declare your
income and determine your tax liability.
-
Your income tax return shall be accepted
without any conditions. There will be no
compulsory enhancement of tax liability
over previous year to qualify for
acceptance. Even your loss return shall
also qualify for acceptance.
-
Filing
of your income tax return itself will be
an assessment order and your eligibility
for refund will flow from your tax
return.
-
A
certain percentage of returns filed
shall be selected for tax audit on the
basis of risk assessment to verify the
accuracy and correctness of your income
tax return.
-
Tax audit will not necessarily mean an
amendment of the assessment originally
made based by you in your return of
income.
-
Your
original assessment can only be amended
on the basis of information acquired
during tax audit or any other source.
-
If selected for audit, there will be no
pre-designated auditors to carry out
audit. The officials making selection
for audit will be different from those
who do actual audit. In other words you
have no designated Income Tax Officer
holding jurisdiction on you.
Thus universal self-assessment in its
true sense will be available to all
taxpayers irrespective of quantum,
status, location or size. This is the
first such experience in this part of
the world.
The new law and the universal
self-assessment system will take away
the discretionary powers of the tax
collectors and place great
responsibility and obligation on you as
a taxpayer and an honorable citizen.
The new Income Tax Ordinance, 2001 and
its salient features, briefly explained
above, are not workable without adequate
records to support the items reported by
you on the income tax return and allied
statements.
The Central Board of Revenue is fully
aware of your (small taxpayers) problems
and difficulties in maintaining adequate
records. Therefore only
bare minimum books of account; documents
and records (that you generally
maintain to run your business) have been
prescribed.
|
|
|
