Urgent Query about Wealth Tax

[imdad1]

114. Return of income.- (1) Subject to this Ordinance, the following persons
are required to furnish a return of income for a tax year, namely–

2
[(a) every company;]

3
[(ab) every person (other than a company) whose taxable income for
the year exceeds the maximum amount that is not chargeable
to tax under this Ordinance for the year;]


4
[(ac) any non-profit organization as defined in clause (36) of section
2; and]


5
[(ad) any welfare institution approved under clause (58) of Part I of
the Second Schedule;]


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[(b) any person not covered by clause
1
[(a), (ab), (ac) or (ad)] who,-

1
Inserted by the Finance Act, 2009.
2
Substituted by the Finance Act, 2003. The substituted clause (a) read as follows
“(a) Every company and any other person whose taxable income for the year
exceeds the maximum amount that is not chargeable to tax under this
Ordinance for the year; and”
3
Inserted by the Finance Act, 2003.
4
Inserted by the Finance Act, 2006.
5
Inserted by the Finance Act, 2006.
6
Substituted by the Finance Act, 2005. The original clause (b) read as follows
(b) any person not covered by clause (a) or (ab) who –
(i) has been charged to tax in respect of any of the four preceding tax years;
(ii) claims a loss carried forward under this Ordinance for a tax year;
(iii) owns immovable property, with a land area of two hundred and fifty square yards or more,
located in areas falling in the limits of a Metropolitan/Municipal Corporation, a Cantonment
Board, or the Islamabad Capital Territory or owns any flat;
(iv) owns a motor vehicle (other than a motor cycle) in Pakistan;
(v) subscribes for a telephone including a mobile phone in Pakistan;
(vi) has undertaken foreign travel in the tax year other than travel by a non-resident person or
any travel for the purposes of the Haj, Umrah, or Ziarat; or 128

(i) has been charged to tax in respect of any of the two
preceding tax years;

(ii) claims a loss carried forward under this Ordinance for a
tax year;

(iii) owns immovable property with a land area of two
hundred and fifty square yards or more or owns any flat
located in areas falling within the municipal limits
existing immediately before the commencement of Local
Government laws in the provinces; or areas in a
Cantonment; or the Islamabad Capital Territory
2
[;] ]

3
[(iv) owns immoveable property with a land area of five
hundred square yards or more located in a rating area;]

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[(v) owns a flat having covered area of two thousand square
feet or more located in a rating area;]

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[(vi) owns a motor vehicle having engine capacity above
1000 CC; and]


6
[(vii) has obtained National Tax Number.]


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[(2) A return of income -


(vii) is member of a club where the monthly subscription exceeds five hundred rupees or the
admission fee exceeds twenty-five thousand rupees.
1
The letters and word “(a) or (ab)” substituted by the Finance Act, 2006.
2
Full stop substituted by the Finance Act, 2009.
3
Inserted by the Finance Act, 2009.
4
Inserted by the Finance Act, 2009.
5
Inserted by the Finance Act, 2009.
6
Inserted by the Finance Act, 2009.
7
Substituted by the Finance Act, 2003. The substituted sub-section (2) read as follows
“(2) A return of income –
(a) shall be in the prescribed form;
(b) shall state the information required by the form, including a declaration of the
records kept by the taxpayer;
(c) in the case of a person carrying on a business, shall include an income
statement, balance sheet, and any other document as may be prescribed for
the tax year; and
(d) shall be signed by the person or the person’s representative.” 129
(a) shall be in the prescribed form and shall be accompanied by
such annexures, statements or documents as may be
prescribed;

(b) shall fully state all the relevant particulars or information as
specified in the form of return, including a declaration of the
records kept by the taxpayer;
1
[and]

(c) shall be signed by the person, being an individual, or the
person’s representative where section 172 applies.]

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[(2A) A return of income filed electronically on the web or any magnetic
media or any other computer readable media as may be specified by the Board
shall also be deemed to be a return for the purpose of sub-section (1); and the
Board may, by notification in the official Gazette, make rules for determining
eligibility of the data of such returns and e-intermediaries who will digitise the
data of such returns and transmit the same electronically to the Income Tax
Department under their digital signatures
3
[and other matters relating to
electronic filing of returns, statements or documents, etc.] ]

(3) The Commissioner may, by notice in writing, require a person, or a
person’s representative, as the case may be, to furnish a return of income by the
date specified in the notice for a period of less than twelve months, where -

(a) the person has died;

(b) the person has become bankrupt or gone into liquidation;

(c) the person is about to leave Pakistan permanently;

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[ ]

(e) the Commissioner otherwise considers it appropriate to require
such a return to be furnished.

(4) Subject to sub-section (5), the Commissioner may, by notice in
writing, require any person who, in the Commissioner’s opinion, is required to file
a return of income under this section for a tax year
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[or assessment year] but
who has failed to do so to furnish a return of income for that year within thirty

1
Inserted by the Finance Act, 2005.
2
Inserted by the Finance Act, 2005.
3
Inserted by the Finance Act, 2007.
4
Omitted by Finance Act, 2003. Earlier this was omitted by S.R.O. 633(I)/2002 dated 14.09.2002
which stands rescinded by SRO 608(I)/2003, dated 24.06.2003 with effect from 01.07.2003. The
omitted clause (d) read as follows
“(d) the person is otherwise about to cease carrying on business in Pakistan; or “
5
Inserted by the Finance Act, 2003. 130
days from the date of service of such notice or such longer period as may be
specified in such notice or as the Commissioner may allow.

(5) A notice under sub-section (4) may be issued
1
[in respect of one or
more]
2
[of the] last five completed tax years
3
[or assessment years].


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[(6) Any person who, having furnished a return, discovers any omission
or wrong statement therein, without prejudice to any other liability, which he may
incur under this Ordinance, may furnish a revised return for that tax year at any
time, within five years from the end of the financial year in which original return
was filed, subject to the following, namely-

(a) it is accompanied by the revised accounts or revised audited
accounts, as the case may be;

(b) the reason of revision of return, in writing, duly signed, is filed
therewith; and

(c) it is filed before the issuance of the notice for amendment of
assessment.]

(7) Every return purporting to be made or signed by, or on behalf of a
person shall be treated as having been duly made by the person or with the
person’s authority until the person proves the contrary.

115. Persons not required to furnish a return of income.-
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[(1) Where the
entire income of a taxpayer in a tax year consists of income chargeable under

1
The words “only in respect of the” substituted by Finance Act, 2003. Earlier these were substituted
by S.R.O. 633(I)/2002 dated 14.09.2002 which stands rescinded by SRO 608(I)/2003, dated
24.06.2003 with effect from 01.07.2003.
2
Inserted by the Finance Act, 2005.
3
Inserted by the Finance Act, 2004.
4
Substituted by the Finance Act, 2009. The substituted sub-section (6) read as follows
“(6) Any person who, having furnished a return, discovers any omission or wrong statement
therein, may furnish a revised return within five years of the date that the original return was
furnished.”
5
Substituted by the Finance Act, 2008. The substituted sub-section (1) read as follows
“(1) Where the entire income of a taxpayer in a tax year consists of income chargeable under the
head "Salary", the taxpayer may, instead of furnishing a return as required under section 114
furnish –
(a) a certificate from the person’s employer in the prescribed form stating such
particulars, and accompanied by such statements, and verified in such manner, as
may be prescribed, and such certificate shall be, for the purposes of this Ordinance,
treated as a return of income furnished under section 114
Provided that a taxpayer shall not be required to furnish a certificate, if his
employer has furnished for the same tax year, Annual Statement of Deduction of
Income Tax From Salary as prescribed under the Income Tax Rules, 2002.
(b) a wealth statement referred to in section 116. 131
the head “Salary”, Annual Statement of Deduction of Income Tax from Salary,
filed by the employer of such taxpayer, in prescribed form, the same shall, for the
purposes of this Ordinance, be treated as a return of income furnished by the
taxpayer under section 114

1
[Provided that where salary income, for the tax year is five hundred
thousand rupees or more, the taxpayer shall file return of income electronically in
the prescribed form and it shall be accompanied by the proof of deduction or
payment of tax and wealth statement as required under section 116.] ]

2
[ ]

(3) The following persons shall not be required to furnish a return of
income for a tax year solely by reason of
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[sub-clause (iii)] of clause (b) of sub-
section (1) of section 114 –

(a) A widow;

(b) an orphan below the age of twenty-five years;

(c) a disabled person; or

(d) in the case of ownership of immovable property, a non-
resident person.