Assessment year and Tax year

[maani]

Can any body explain the concept of Assessment year and Tax year...have they the same meaning...tax books doesnot have understandable definitions
thanks!

Ace

[massood akhter]

AoA,

the concept of assessment year has been done away with the end of Income Tax Ordinance 1979, The ITO 2001 has totally different concept based on audit instead of assessment. In ITO 2001 tax is levied/calculated on the basis of tax year.

I do hope that it will be the answer.




massood ar.

[maani]

the problem is still there...if income year is 2004...then the tax year would be 2005?...





Ace

[ali4u3]

Assesment Year means the assesment year as defined in the REPEALED Ordinance ( i.e ITO 1979) section 2(8) of the repealed ordinance defined the assesment year as below
Assesment Year means a period of 12 months begining on the first day of july nest following the income year. it also includes any such period, which is deemed to be the assesment year in respect of any income, or income year .from the above defination it should be noted that
1> assesment year is a period of 12 months
2> assesment year starts on 1 july immediate after the colse of the income year.
fpr emaple....
TAX PAYER income year end income year AS year Start ASS year<b></b>
MR A 31-03-2003 2002-2003 01-07-2003 2003-2004

i think it 'll help u out )



Never seek advice from a Chartered Accountant. They are trained to find problems not solutions.

[massood akhter]

AoA,

tax year means period of 12 months ending on the june 30 (normal tax year) and be denoted by the calender year in which said date (30 june) falls.

In certain circumstances the tax year may be differeent from NORMAL TAX YEAR (as discussed above) such income year or tax tax year sahll be that person's tax year (SPECIAL TAX YEAR) and be denoted by the calender year in which such closing date of the tax year falls.

suppose an income year ends on 30-09-2004 than its tax year will be 2004 and so on.

I DO HOPE THAT THIS WILL BE THE ANSWER.
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massood ar.

[zahidnoor]

Hi Masood,

sub section 2 denotes the special "income year's" tax year qouted "be denoted by the calendar year relevant to normal tax year in which the closing date of the special tax year falls."

so i think for 30-09-2004 income year the tax year should be the 2005. as my understanding of the provision .

kindly correct me if i m wrong.

regrds

zahid

[Ali Akbar]

AOA

Ya Mr Zahid is right.

Income year ending 30-09-04 will be denoted by Tax Year 2005.

ICAP is the best, impeccably best.