Project:What is assessment and legal provision regarding furnishing of return on income?Subject:Business TaxationTeacher:Mr. Faiz AhmadGroup MemberMuhammad Zeeshan AnjumMuzzamil HussainDated29-05-2015

Assessments:Assessments means a complete scrutiny of the information provided by the tax payer in his return.Cycle of assessment:The following are the major stages involved in the cycle of assessment: A person furnishes the return of income. Assessment of the return is made and the tax payable by the person is determined. Payment of tax by the taxpayer. Recovery of tax from the defaulter taxpayer. Refund of tax.

LEGAL PROVISIONS REGARDING FURNISHING OF INCOME.At the end every tax year it is necessary for certain persons to inform the income tax authorities about the total income they have earned during the year they are also required to show the income earned but which are exempt from tax.All these details are to be provided in a prescribed form. This form techniqually is known as a return of income or simply a return. A return of income states all the information required by the form including a declaration of the records kept by the taxpayer.in case of persons caring on a business there return should also include an income statement, balance sheet and any other document asked for in the form.it should be sign by the person are his representative, if the taxpayer is not on the national tax number register, he should file an application on prescribed form along with the return of income. When this return duly completed is submitted to the income tax authorities it is known as furnishing of return of income. All the resident individual should furnish of wealth statement and a wealth reconciliation statement also along with their return with affect from tax year 2013 Who should furnish a return?It is necessary for the following person to furnish a return of income Every person whose total income during the tax year exceeds the maximum amount that is not chargeable to tax Every company irrespective of its income Any nonprofit organization Any person who has been charged to tax for any of the two tax year immediately preceding a previous tax year Any person who claim a loss carried forward from a previous tax year Any person owing 500 yards or above immoveable property in a rating area Any person who owns a flat with covered area of 2000 square feet or more located in a rated area Any person who has obtain a national tax number Any person holding commercial or industrial connection of electricity where the annual bill exceeds Rs 500000Furnishing a wealth statement:Filling a wealth statement and a wealth reconciliation statement along with a return of income is compulsory for the following persons Every individual taxpayer filling a return of income Any person other than company or association of a person which falls under final tax regime(FTR) Every member of an AOP Every person to home commissioner of inland revenue serves a notice for filling a wealth statement

When to furnish the return of income:A taxpayer should furnish the return of income according to the final details: The companies whose tax year ends between first January and 30th June, the return of income must be furnished up to 31st December of the same year. All other persons must furnish their returns of income by 30th sep, next following the end of their tax year In case a person is discontinuing his business and the commissioner has issued him a notice to furnish the return, the person should furnish the return by the date specified in the notice

RETURN OF SALARIED PERSON:If the salary income of a person is RS. 5,00,000 or more , he must file the return of income electronically in the prescribed form .it must be accompanied by the proof of deduction or payment of tax and wealth statement along with a wealth reconciliation statement.

Extension for furnishing the return:The commissioner of income tax has the powers to extend the date for furnishing the return provided that an application for extension in time is presented by the due date of furnishing the return.Invalid return:The following instances illustrate the circumstances under which return furnished will be treated as invalid. Return which is not signed and verified by the tax payer or his authorized agent. Return not furnished in the prescribed manner or form. Non-furnishing of wealth statement along with the return of total income if the total income of last year is present year is RS. 5, 00,000 OR more.