The Federal Board of Revenue (FBR) would select 12 percent cases for audit out of total filed returns and exempt certain categories of cases from random computerised ballot for selection of cases for audit for tax year 2014.
According to the draft of the Audit Policy 2015, the FBR shall conduct random computer ballot for selection of up to 12 percent cases for audit out of the total Income Tax, Sales Tax and FED returns filed for Tax Year 2014 and for corresponding tax periods ie 1st July 2013 to 30th June 2014. Certain exclusions have been identified and approved by the Board which pertain to cases where audit is not required.
Those exclusions are as under:
Within the category of Income Tax Corporate Returns, cases excluded from audit included all Final Tax Regime (FTR) cases; all cases where no business is stated to have been conducted for the relevant tax year; all cases already selected for audit for Tax year 2013 under section 177(1), and 214C of the Income Tax Ordinance, 2001; all cases already selected for audit by the CIRs for Tax Year 2014 under section 177 (1) of the Income Tax Ordinance, 2001 and all cases where no turnover has been declared.
Under the category of Income Tax Non-Corporate Returns, exclusions included all final Tax Regime (FTR) cases; all case declaring Below Taxable Limit (BTL) income; cases where no turnover have been declared; taxable income from salary only; taxable income form property only except persons declaring income from property for first time; taxable income form share from AOP only; cases of pensioners drawing exempt income from pension and any other exempt income; foreign remittance income; All cases already selected for audit for Tax Year 2013 under section 177(1), and 214C of the Income Tax Ordinance, 2001.
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