IMMUNITY FROM TAX AUDIT – CIRCUALR No. 15 of 2013 – INCOME TAX

The Federal Board of Revenue has issued Circular No.15 of 2013 (Income Tax) dated 10-12-2013 for the purposes of Proviso to clause (84) of SRO. 1040/2013 dated 05-12-2013 and to specify the Performa to claim exemption/immunity from audit u/s 177 and 214C of the Income Tax Ordinance, 2001.

Part I of the Circular specifies the following:-

1. Immunity from audit is available to an individual, AOP and company through the said SRO.
2. Persons who have already filed their returns for the tax year 2013 may revise their returns and claim immunity from audit under the said SRO and no approval from the Commissioner will be required.
3. The said immunity is available to those whose income for Tax year 2012 was exempt, but their income for the tax year 2013 is taxable. They will, however, pay 25% more tax as compared to the previous year had their income for the tax year 2012 been taxable.
4. In order to avail the immunity tax shall be calculated according to the Performa specified in Part II. Those who have already filed their revised return may file the Performa by 31.12.2013. However, this does not amount to extension of the date for filing of returns which remains 15.12.2013.
5. Tax paid for Tax Year 2012 includes minimum tax under section 113 of the Income Tax Ordinance, 2001.
6. The said immunity will not apply where income declared for the Tax Year 2012 is below the taxable limit of Rs. 350,000/-

Part- II (PERFORMA)

The Performa as per SRO. 1040/2013 to be filed along with the Return is as under:-

a)      Where income was not exempt during tax year 2012.

1	Taxable Income declared for Tax Year 2012
2	Whether taxable income revised/amended (Y/N)?
3	If Yes, latest amended taxable income for Tax Year 2012
4	Tax paid on Taxable Income
5	25% of 4
6	Minimum Tax Payable for Tax Year 2013 under SRO. 1040/2013 (4+5)
7	Tax Paid for tax year 2013
8	CPR No.
9	Whether Eligible for Immunity from audit (FOR OFFICIAL USE ONLY)

b)      Where income was exempt during tax year 2012.

1	Taxable Income declared for Tax Year 2012
2	Whether taxable income revised/amended (Y/N)?
3	If answer to 2 is yes, tax payable if it was not exempt
4	25% of 3
5	Minimum Tax Payable for Tax Year 2013 under SRO. 1040/2013 (4+3)
6	Tax Paid for tax year 2013
7	CPR No.
8	Whether Eligible for Immunity from audit (FOR OFFICIAL USE ONLY)