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+--- Thread: Wealth Reconciliation Statement (/thread-wealth-reconciliation-statement)
Wealth Reconciliation Statement - farruukh - 10-11-2011
Please me have your advice(s) , how you prepare Wealth reconciliation statement.
Suppose, I am proprietor of small company and received amount of Rs. 500,000/- on a/c of supply on which tax @3.5% amounting to Rs. 17500/- is deducted , total expenses during the year is Rs. 65000/- , my net income after tax is Rs. 417500/-.
Now my question is what amount of income should i declare in reconciliation Rs. 417,500/- or reverse calculate Rs. 17500/- (income tax on supply) with rate of tax on individual which is 7.5% as per first schedule "Where the taxable income exceeds Rs.300,000
and does not exceed Rs.500,000 7.50%"
if i calculate reverse then my income will be Rs. 233,333/- (17500 / 7.5%) but i i declare Rs. 417,500/- then is there any problem? because income tax on Rs. 417,500/- @7.5% is rs. 31313/- and i paid Rs. 17500/-, is i/tax dept any authority to ask me to pay balance amount???
please help me
- LapTop - 10-11-2011
Where the final tax is of Rs. 35,000 or more in a tax year a Wealth Statement and a Re-conciliation Statement thereof.
- farruukh - 10-11-2011
i have just mentioned an example, i want to clarify that what amount should i mention in Receipt section of wealth statement rs. 233,333/- or Rs. 417500/-
- sharif lakhani - 10-11-2011
by the way 3.5% tax on supplies is fixed tax or final tax?