The Federal Board of Revenue (FBR) is planning to restrict taxpayers to get their accounts audited by professional accountant firms for e-filing of income tax returns, it is learnt on Monday. According to sources in the FBR, the Board was striving to insert a new provision - (177-A) - in the Income Tax Ordinance, 2001 in the Budget 2014-15 to make the audit of financial accounts by professional accountant firms mandatory for taxpayers for e-filing of income tax returns.
Replying to a question, sources said: "If the taxpayers fail to comply with the provisions of the said section, income tax returns shall be treated as invalid." They said after the insertion of section 177A, it shall be obligatory for taxpayers to get their accounts audited by professional accountant firm as defined under Chartered Accountants Ordinance 1961 or a firm of Cost and Management Accountants as defined under the Cost and Management Accountants Act 1966.
They said every company and person, if total sales, turnover, or gross receipts as the case may be, in business for the tax year or the immediately preceding tax year exceeded Rs 10 million or whose total income for the tax year or the immediately preceding tax year exceeded Rs 1 million, shall be liable to get their accounts audited. They said after conducting audit, the firm of professional accountants shall certify that the accounts were maintained by the taxpayers in accordance with the provisions of the ordinance, and give a true picture of the income of the taxpayer, as computed under the ordinance.
Moreover, sources said the firm shall submit its report in the form prescribed under the rules, and a copy of such report shall form part of the return filed by the person under the ordinance. They said nothing contained in this section shall preclude the commissioner from conducting the audit of the income tax affairs of the persons under any other provision of this ordinance.
Comments
Comments are closed.