The government has relaxed the issues related to submission of income tax returns and making assessment under the universal self-assessment scheme, according to the budget proposal of the government for the next fiscal year.
Taxpayers will be able to submit revised income tax returns within six months of filing the original returns if they find any unintentional mistakes in the returns.
Taxmen will also give a scope to the taxpayers to file revised returns finding a difference in the amount of income, tax or other material figures than the amount mentioned in the original returns during scrutiny of the returns.
The government brought an amendment to the related provision of the Income Tax Ordinance-1984 through the proposed Finance Bill-2017 placed before parliament on Thursday relaxing the submission of tax returns under the scheme.
Tax officials will also allow the taxpayers to file revised returns detecting any error in the returns in the process of audit.
They will close the audit process without making assessment or conducting hearing if the revised returns are found accurate and taxes are paid, the amendment stated.
A taxpayer will also be exempted from audit if he or she shows income 15 per cent higher than that of previous year.
Officials of the National Board of Revenue said that many taxpayers made unintentional mistakes in computation of income, tax, rebate and other figures and had to face assessment and hearing before the tax officials.
Now the taxmen will offer the taxpayer to file revised returns by correcting the mistakes and paying the additional tax without facing any assessment and hearing, he said.
He said that taxpayers could also avail the benefit if they, themselves, found such mistakes after filing returns.
In this case, taxpayers will have to pay 2 per cent interest per month on unpaid tax amount, he added.
The proposed amendments will also allow the taxmen to close an audit process by offering the taxpayer to file revised returns.
The amended returns will not face audit further.
The proposed finance bill also relaxed the provision of showing income of businesses and professionals in the first returns.
No question as to the source of initial capital of the business or profession of a new assessee shall be raised if the assessee shows at least 20 per cent of the initial capital invested in the business or profession as income, said tax officials.
Currently, new assessee gets the benefit for showing 25 per cent of the initial capital as income, they said.
The amendments also proposed to waive the small taxpayers having gross wealth up to Tk 25 lakh from furnishing wealth statement with the tax returns. Currently, taxpayers with gross assets up to 20 lakh enjoy the benefit.
They said that the proposed amendments, if finally approved by the parliament, would make the return submission simplified for taxpayers.
Currently, more than 95 per cent of taxpayers submit income tax returns under universal self assessment scheme introduced in the fiscal year 2007-08.
Under the system, taxpayers calculate their own tax and submit income tax returns which the revenue board accepts without any questions if the returns are found complete and correct.
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