ISLAMABAD (July 02 2003) : The Central Board of Revenue (CBR) has proposed comprehensive amendments in the Income Tax Rules 2002 asking the companies to furnish documents/certificates along with the return of total income.
The tax authorities are also considering to amend Income Tax Recovery Rules.
The CBR has issued a draft SRO 633 (I)/2003 here on Tuesday suggesting 10 amendments and proposed incorporation of new Rule 30A after Rule 30 of the Income Tax Rules 2002.
The CBR has circulated the draft to all the stakeholders, including commissioners of income tax (CITs) for comments.
The draft will be taken into consideration after 15 days of its publication in the official gazette.
According to the proposed rule, every company as defined in clause (b) of Sub-section (2) of Section 80 would, with the return of total income for that year, furnish a copy of the balance sheet, profit and loss account for that year and an auditors' report prepared/signed by chartered accountant or a cost and management accountant.
In case a company has not complied with these requirements, its income, profits and gains would be computed on such basis and in such manner as the commissioner might determine.
The authorities have also proposed omission of Rule 63 pertaining to quarterly and annual statements of collection of tax in relation to the issue or clearance of certain financial instruments.
Similarly, it has been suggested to abolish Rule 65 relating to the quarterly and annual statements of tax deducted from the commission or discount allowed to the petrol pump operators.
Following is the text of the SRO 633 (I)/2003 issued here on Tuesday: “The following draft amendments in the Income Tax Rules, 2002, proposed to be made in exercise of the powers conferred by section 237 of the Income Tax Ordinance, 2001 (XLIV of 2001), is hereby published, for the information of all persons likely to be affected thereby, and notice is hereby given that the draft will be taken into consideration after fifteen days of its publication in the official Gazette.
“Any objection or suggestion which may be received from any person, in respect of the said draft amendments before the expiry of the aforesaid period, shall be considered by the Central Board of Revenue.”
DRAFT AMENDMENTS
“In the aforesaid Rules:
(1) in rule 18, in clause (b), the proviso shall be omitted;
(2) in rule 19, in clause (c), the proviso shall be omitted;
(3) after rule 30, the following a new rule shall be inserted, namely:
“30A In particular, and without prejudice to the generally of the provisions of rule 29, documents, certificates, etc, to be furnished by companies. – (1) Every company as defined in clause (b) of sub-section (2) of section 80 shall, with the return of total income for that year, furnish a copy of the balance sheet, profit and loss account for that year and an auditors' report for that year, in Form 35A of the Companies (General Provisions and Forms) Rules, 1985, prepared and signed by a person who is a chartered accountant within the meaning of the Chartered Accountants Ordinance, 1961 (X of 1961), or a Cost and Management Accountant within the meaning of the Cost and Management Accountants Act, 1966 (XIV of 1966).
(2) Where a company has not complied with the requirements of sub-rule (1), its income, profits and gains shall be computed on such basis and in such manner as the Commissioner may determine”.
(4) in rule 45, sub-rule (2) shall be omitted;
(5) in rule 54, before the word “QUARTERLY” the figure “55” shall be omitted;
(6) rule 63 shall be omitted;
(7) rule 65 shall be omitted; and
(8) in Chapter XVI,
(a) in Part-II, in the heading, the word “ATTACHMENT”, at the end, shall be omitted; and
(b) in Part-III, in the heading the word “ATTACHMENT”, at the end, shall be omitted”.
