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Accounts audit likely to be made mandatory for e-filing of IT returns

Accounts audit likely to be made mandatory for e-filing of IT returns

ISLAMABAD: The Federal Board of Revenue (FBR) is planning binding taxpayers to get their accounts audited by professional accountant firms for e-filing of income tax returns.

According to reports, the board intends to insert a new provision – (177-A) – into the Income Tax Ordinance, 2001 in the budget for 2014-15 to make the audit of financial accounts by professional accountant firms mandatory for taxpayers for e-filing of income tax returns.

Once the provision is inserted, it will be mandatory for the taxpayers to comply with the provisions. After the insertion of section 177A, it shall be obligatory for taxpayers to get their accounts audited by professional accountant firm as defined under Chartered Accountants Ordinance 1961 or a firm of Cost and Management Accountants as defined under the Cost and Management Accountants Act 1966.

Every company and person, if total sales, turnover, or gross receipts as the case may be, in business for the tax year or immediately preceding tax year exceeded Rs10 million or whose total income for the tax year or the immediately preceding tax year exceeded Rs1 million, shall be liable to get their accounts audited. They said after conducting audit, the firm of professional accountants shall certify that the accounts were maintained by the taxpayers in accordance with the provisions of the ordinance, and give a true picture of the income of the taxpayer, as computed under the ordinance.