August 8, 2013

Responsibilities of a Salaried Taxpayer of Pakistan for 2013

Finance Act, 2013 made drastic changes in different provisions of the Income Tax Ordinance, 2001 related to Salaried Class, some of the important provisions and responsibilities of a salaried taxpayer relevant to submission of return and wealth statement for Tax Year 2013 are listed below: 

a. Filing of Income Tax Return for Tax Year 2013 is mandatory for every salaried individual having income exceeding Rs. 400,000/-. [Section 114(1)(ab)] 

b. Wealth statement and Wealth Reconciliation Statement shall also be submitted alongwith return of income by every return filer. [Section 116(2)] 

c. E-filing of Income Tax Return alongwith Wealth Statement and Wealth Reconciliation Statement is mandatory for salaried individual having income of Rs. 500,000 or more. [Section 118(2A)] 

d. The Federal Government also introduced a new levy i.e. Income Support Levy Act, 2013, resultantly every taxpayer having movable assets exceeding Rs. 1,000,000 shall pay levy @ 0.5%. 

e. Last date for filing of return and wealth statement is August 31, 2013 [Section 118(3)(a)] 

Penalties for Non-Compliance 

a. Non-filing of return will attract a minimum penalty of Rs. 20,000 and maximum 50% of the amount of tax. [Section 182(1) Serial # 1 of the Table] 

b. Non-submission of Wealth Statement will attract a penalty of Rs. 100/- per day of default. [Section 182(1) Serial # 1AA of the Table] 

c. Non payment of Income Support Levy Act, 2013 will attract default surcharge @ 16% pa of the payable amount.