The Wealth Statement and Reconciliation Statement (2018-19) have to be submitted by resident individual taxpayer having foreign income of not less than US $10,000 or having foreign assets not less than US $100,000. According to the explanation of income tax return form for Tax Year 2018 issued by Mustafa Hassan and Associates-Tax Consultants, the Wealth Statement and Reconciliation Statement would be required to be filed by every resident taxpayer (individual or member of AOP).
The obligation to file "Income Tax Return" for 2018-19 included every company irrespective of any income limit. Associations of persons and individuals under any of the following conditions: Income from business for individual in a tax year exceeds Rs 300,000; every person (other than company) whose taxable income exceeds Rs 400,000 for the year; charged to tax in any of the two preceding tax years or claims a loss carried forward under the Income Tax Ordinance, 2001.
The obligation to file "Income Tax Return" for 2018-19 cover those who owns immovable property, ie, with land area of 250 sq yards or more or a flat located in areas falling within the municipal limits or a cantonment board or Islamabad Capital Territory; with land area of 500 sq yards or more located in a rating area; or a flat with covered area of 2,000 sq feet or more located in a rating area.
The obligation to file "Income Tax Return" for 2018-19 included those who own a motor vehicle having engine capacity above 1,000 cc; has obtained a National Tax Number; holder of commercial or industrial connection of electricity where the amount of annual bill exceeds Rs 500,000 and member (a resident person only) of any chamber, trade/business association, market committee or professional body including PEC, PMDC, PBC, ProvBC, ICAP, ICMAP.
The obligation to file "Income Tax Return" for 2018-19 covers an individual (resident person) to file foreign income and assets statement; non profit organizations, irrespective of any condition; any welfare institution, irrespective of any condition; any person to whom a notice for furnishing of the return of income has been served by the Commissioner and entire income is subject to final tax or fixed tax for which a separate statement is prescribed.
Mustafa Hassan and Associates explained that the notice for filing of return may be issued for ten years to non-filers.
Due date for furnishing the return: Company - 30th September or 31st December next following the end of tax year; Individual (other than salary) and Association of Persons - 30th September next following the end of tax year and for salary individuals, it is 31st August next following the end of tax year.
Mandatory to furnish the return electronically: A company; an Association of Persons; an individual registered under the Sales Tax Act, 1990; an individual deriving income from salary; Person claiming refund and an individual declaring income one million or turnover Rs 50 million or more are bound to file returns electronically.
Penalty for non-filing or late filing is minimum Rs 20,000 while maximum penalty is 50 percent of tax payable. There is a penalty of 2 percent of the foreign income or value of foreign assets for each year for non-filing of foreign assets and income statement within due date.