This document discusses Pakistan's Self Assessment Scheme for income tax assessment year 2001-2002. Some key points: - The scheme allows taxpayers to self-assess their income tax as long as certain conditions are met, such as fully paying tax and filing on time. - Certain types of returns are not eligible for self-assessment and will undergo a full audit, such as those with declared losses or lump sum additions. - Eligible returns must include detailed documents supporting income sources like business financial statements, salary certificates, property tax payments. - 20% of returns will be randomly selected for a full audit to verify self-reported income and tax payments. Assessors can make adjustments if deficiencies are found

1. Name Rebekah Samuel
Class BBA 4th
A
Subject Business taxation
Submitted to Sir Faiz Ahmad
Topic Self Assessment Scheme
Subject: - Discuss the Self Assessment Scheme in detail under the income
tax audience of 2001.
In exercise of powers vested in the Central Board of Revenue under section 59 of the Income
Tax Audience,1979 (hereinafter called the Audience ), the following Self Assessment Scheme
(SAS) is made for the assessment year 2001-2002 :-
1. SCOPE OF THE SCHEME:
All returns filed by tax-payers, other than cases that are in-eligible under Para 7 of this
Scheme, shall qualify for acceptance if they fulfill the following conditions, namely;
(a) Tax has been fully paid under section 54 of the Ordinance and proof of such
payment is attached with the return;
(b) Return of income for the assessment year 2001-2002 has been filed under section
55 of the Ordinance, within due date as defined in this Scheme;
(d) cases of other companies, where tax payable on the income declared is higher by
ten percent (10%) or more compared to the tax payable on the income last declared or
assessed, whichever is higher; and
(e) cases of persons not being companies, where tax payable on income declared is
higher by twenty percent (20%) or more compared to the tax payable on the income
last declared or assessed, whichever is higher.
Note:
The conditions regarding percentage increase in tax shall not be applicable if income
consists of or includes salary and such income constitutes more than 50% of the total income
declared for the year, or where income is derived only from house property.
EXPLANATION:
I) For the purpose of Self Assessment Scheme, - "Tax" includes surcharge but does
not include additional tax/penalty.

2. iii) Where an existing assesses takes over the business of another existing assesses,
the comparison of tax shall be made with the tax payable by the successor or the
predecessor, and whichever is the higher.
iv) "New taxpayer" means a person who has never filed a return or statement of
income under the Audience, in the past or no assessment has ever been made in
respect of his income.
v) Where any person takes over the business of an existing assesses, it would be a
case of succession in business and the successor shall be taken to be an existing
assesses, unless there is a change in the place or nature of business.
vi) "Income last assessed" means the income for any year assessed immediately
before the date of filing of return by a taxpayer.
2. REQUIREMENTS
The following statements, accounts, details and documents are to be filed along with returns
of income:
A) INCOME FROM BUSINESS OR PROFESSION:-
(I) Where accounts are maintained:-
Copies of trading/manufacturing, profit and loss accounts, balance sheet of the
business, receipt and expenditure statement, wherever applicable, depreciation chart as
per Third Schedule to the Ordinance and personal accounts of the proprietor,
members, partners or directors, as the case may be, along with a declaration and
details of the books of accounts and record maintained.
Note:
Where companies are required under the law to file copies of trading/manufacturing, profit &
loss accounts and balance sheet certified by a Chartered Accountant, such copies are to be
filed accordingly.
ii) Where accounts are not maintained:-
Where no accounts are maintained, Manufacturing and/or Trading Account(s) and
Profit & Loss Account or Receipt and Expenditure statements on estimate basis.
B) INCOME FROM SALARY:
Salary certificate prescribed under the Income Tax Rules, 1982, showing salary,
allowances, perquisites, or any other receipt and the amount of tax deducted at source.

3. C) INTEREST ON SECURITIES:
Evidence of payment of interest on money borrowed for investment in securities and
of the commission if any paid for realizing interest on securities.
D) INCOME FROM HOUSE PROPERTY:
(I) Evidence for payment of provincial or local taxes on property, collection charges
claimed if any, interest on capital borrowed for purposes of the property in question
and any other admissible deductions claimed under the Ordinance.
(ii) Full particulars of the property/properties and its financing in cases where
property income is declared for the first time.
(iii) Particulars of non adjustable advance rent if any received.
NOTE:
Wherever aggregate investment in new assets and properties exceeds Rs.5 laces, sources of
investment shall be declared and evidence attached with the return.
E) INCOME FROM OTHER SOURCES:
Description of nature and source of income as well as details of any expenses claimed
along with necessary evidence.
3. WEALTH STATEMENT:
Wealth statements shall accompany all returns of income where the income declared
is Rs. 200,000/- (2 laces) or more.
4. DONATION OR CONTRIBUTION TO APPROVED INSTITUTIONS:
Evidence of actual payment made on account of a donation, or a contribution to any
approved institutions or funds, shall be attached with the return of income.
5. EXEMPT INCOME:
If any income is claimed to be exempt from tax, its computation and the basis of
exemption shall be adduced to the return.
6. CERTIFICATE IN CASE OF A COMPANY:
In case of a company, a certificate, prescribed below, duly signed by a Chartered
Accountant or Cost & Management Accountant, and shall be attached with the return stating
that:

4. " It is hereby certified that we have examined the record of M/s in the light of all
relevant provisions of the Income Tax Ordinance, 1979, and certify that income
declared is true, fair and in accordance with the generally accepted accounting
principles and is based upon the following record and accounts:-
a) Cash book
b) Ledger
c) .......
d) .......
It is further certified that:-
I) No addition is warranted under section(s) 12 and/or 13 of the Income Tax
Ordinance, 1979, and where it is so warranted, due addition for deemed income has
been made.
ii) No action is warranted under section(s) 24 and/or 25(c) of the said Ordinance
and where it is so warranted, due addition has accordingly been made.
iii) The company has fully discharged its obligation under section 50 and no liability
of tax as withholding agent is out-standing to warrant action under section 52 of the
Ordinance. All tax deductible/collectible under section 50 of the Ordinance has been
deposited in Government Treasury.
iv) The depreciation chart has been examined in accordance with the requirements
of Income Tax Ordinance, 1979, and due adjustments have been made."
Note:
Legible copies of statements, accounts, certificate, details, documents and evidences as
required in the foregoing paragraphs shall be filed along with the return.
7. RETURNS NOT ELIGIBLE:
Following returns shall not be eligible for acceptance and shall automatically be subjected to
total audit:
I) All cases where loss has been declared.
ii) All cases where income has been arrived at by making a lump sum addition.
iii) All cases of non-residents.
iv) All cases of modarabas and companies engaged in the banking and leasing
business.
v) All cases, where a legal issue is pending in any appeal in respect of a previous
assessment and the same issue exists in the current year, unless the appeal/reference is

5. withdrawn either by the taxpayer or the Department, as the case may be, before the
filing of return under the Scheme.
vi) All returns where there is evidence of concealment of income.
vii) All returns selected for total audit.
8. PROCESSING OF RETURNS FILED UNDER THE SCHEME
(a) The assessing officer, will make initial scrutiny of the returns with respect to
provisions of the Scheme to determine the acceptability thereof.
(b) In case of non-filing of required documents as stated in this Scheme, a notice
shall be issued to the person indicating the deficiency to be made up within 15 days of
the receipt of such notice.
9. SELECTION OF CASES FOR AUDIT
(a) From amongst the returns filed under the Self Assessment Scheme (excluding salary and
only property income cases), twenty percent (20%) returns may be selected for total audit in
the following manner:-
I) through computer opinion poll which may be random as deemed fit by C.B.R.
ii) By Regional Commissioners of Income Tax on the recommendations of
Commissioners concerned in the light of guidelines issued by the Central Board of
Revenue in this behalf.
(b) Returns qualifying for self assessment shall be expeditiously processed either manually,
or through computer, after the selection of cases for total audit. The assessing officer shall
make necessary adjustments u/s 59(3) of the Audience, if so required, after giving a notice in
writing to the assesses and considering his explanation, if any. These adjustments may include
add-backs on account of:-
(I) expenses claimed which are legally excluded;
(ii) Any sum(s) deemed to be income under the Audience.
(iii) Adding agricultural income to chargeable income for rate purposes in Terms of
Proviso to Clause (1) of Part-I of the Second Schedule to the Audience.
THE END