Income tax audit of July-November: FBR detects Rs 38 billion payable by taxpayers

07 Jan, 2011

The Federal Board of Revenue (FBR) has made extra-ordinary detection of over Rs38 billion payable by taxpayers during July-November 2010 after finalisation of income tax audit of different categories of taxpayers.
The income tax audit of corporate taxpayers particularly companies has detected over Rs14 billion during last six months of current fiscal. The accumulative detection made by the FBR through audit is over and above Rs52 billion, which is record figure during this period.
Sources told Business Recorder here on Thursday that over 10,324 desk audits have been finalised by the Income Tax Department during the current fiscal. Such audits of taxpayers on the basis of departmental record will continue till the end of the current fiscal. In addition 4,296 other audits have been finalised this year, yielding revenue detection of Rs38,005 million until end-November, 2010. The corporate audits for income tax during the last six months of current fiscal have unearthed another Rs14,556 million as revenue payable. By June 2011 when this fiscal year ends, the total amount of tax detected through audits will therefore, be substantial. Besides, a comprehensive Annual Audit Plan has already been released for the guidance of FBR's field formations and this is now in the implementation phase.
About the documents required to be attached with the income tax returns, official sources further said that the Rule 34(2) of the Income Tax Rules, 2002 clearly says, that "A return of income as required to be furnished under Section 114 shall be in the form specified in: Part-I (for companies); Part-II (for salaried/non-salaried individuals and association of persons); and of the second Schedule to these rules". Similarly, Part-I and Part-II of the Income Tax Rules, 2002 clearly specify the documents, statements and annexure to be attached with the return which include annexure A for declaration of depreciation, initial allowance and amortisation, annexure B for tax already paid and annexure C for the break-up of sales in case of multiple business in the case of return for individual and association of persons. The annexure A1, B1, C1, and D1 also require nearly the same details regarding returns for the company. Besides, SRO. 1159 of December 12, 2010 (for Company) also requires the above mentioned detailed documents to be attached with the return.

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