ISLAMABAD: The non-filers can avoid automatic selection of audit by paying 25 per cent higher tax than the last year, within 90 days of expiry of last date.
The facility could be availed by the taxpayers, who could not file income tax returns by December 15, 2017.
The date for filing of returns tax year 2017 is expired on December 15, 2017 for taxpayers’ categories, including salary person, business individuals and companies falling under special tax year.
As per Section 214D of Income Tax Ordinance, 2001 the non-filers will be selected for audit automatically. However, the law explained that audit proceedings shall only be initiated after the expiry of ninety days.
The income tax laws explained that the audit proceedings shall not apply if the person files the return within ninety days from the date, if a person pays:
(a) twenty-five percent higher tax, than the tax paid during immediately preceding tax year, has been paid by a person on the basis of taxable income and had declared taxable income in the return for immediately preceding tax year; or
(b) tax at the rate of two percent of the turnover or the tax payable under Part I of the First Schedule, whichever is higher, has been paid by a person alongwith the return and in the immediately preceding tax year has either not filed a return or had declared income below taxable limit:
Provided that where return has been filed for the immediately preceding tax year, turnover declared for the tax year is not less than the turnover declared for the immediately preceding tax year.
