Commercial power users: Tax return threshold curtailed to Rs 0.5 million

The threshold for filing of income tax return has been curtailed to Rs 500,000 from Rs one million in case of a person who is the holder of commercial or industrial connection of electricity under Finance Act, 2013. According to the circular 6 of 2013 issued here on Friday to explain the Finance Act, 2013, the changes have been made in section 114 through Finance Act,
2013. Now a person registered with any Chamber of Commerce and Industry or any trade or business association or any market committee or any professional body including Pakistan Engineering Council, Pakistan Medical and Dental Council, Pakistan Bar Council or any Provincial Bar Council, Institute of Chartered Accountants of Pakistan or Institute of Cost and Management Accountants of Pakistan has to file return of income.
Keeping in view the basic threshold of Rs 400,000, a technical correction has been made to provide that every individual whose income under the head 'Income from business' exceeds Rs 300,000 but does not exceed Rs 400,000 in a tax year is also required to furnish return of income for the tax year.
Prior to Finance Act,2013 any person who, having furnished a return, discovers any omission or wrong statement therein, may file revised return subject to the conditions that it is accompanied by the revised accounts or revised audited accounts, and the reasons for revision of return, in writing, duly signed by the taxpayers. Now such taxpayers shall also have to obtain approval of the Commissioner in writing for revision of return, circular said.
It said that prior to Finance Act, 2013 a salaried individual deriving income under the head 'Salary' where the salary income was above Rs 400,000 but below Rs 500,000 was not required to file return of income as the Annual Statement of deduction of Income tax from Salary, filed by the employer was treated to be a return of income furnished by the taxpayer under section 114. Through Finance Act, 2013 filing of income tax return has been made mandatory for such salaried individuals, the income tax circular added.