The Central Board of Revenue (CBR) has issued 'Income Tax Assistant 2007', a software which will help the taxpayers in computing and determining income chargeable to tax for exact calculation of payable amount of the tax for 2007.
Sources told Business Recorder on Tuesday that the software would assist individuals, associations of persons and companies in preparing the income tax return, annexes, wealth statement, wealth reconciliation, and a host of allied computations and details for the tax year 2007 in accordance with the provisions of Income Tax Ordinance, 2001.
The software has a limited application and may not cater for complex and unique tax situations peculiar to any specific taxpayer. It also does not cover tax situations involving more than one business and calculation of additional taxes.
Sources said that the software can handle data of multiple taxpayers and maintain record of each taxpayer separately. The objective of developing 'Income Tax Assistant' is to facilitate and educate taxpayers in computing the income chargeable to tax and tax liability thereon and preparation of income tax return, applicable annexes, statements, allied computations, details, etc.
It would eliminate human error, discretion, thereby ensuring accuracy in computation of income and tax liability. The software would enhance voluntary compliance by reducing the compliance cost and saving the taxpayer from the burden of the technical language of income tax law, procedure and practices.
Sources said that the complexity of tax laws that can cater to modern pace of economic developments and the ways of commercial and non-commercial transactions cannot be avoided. However, in this software the adaptation of a systematic flow using multiple sub-menu levels has made it possible to overcome the complexities and to make the preparation of income tax return etc as simple and user friendly as possible.