Persons not required filing income tax return, wealth statement

Persons not required filing income tax return, wealth statement

The Income Tax Ordinance, 2001, under Section 115, specifies classes of persons exempted from filing annual income tax returns and wealth statements for the tax year 2019.

This provision outlines the criteria for certain persons who are not obligated to furnish a return solely based on specific conditions mentioned in the ordinance.

According to Section 115, Sub-Section (3), the following persons are not required to file a return of income for the tax year 2019 solely due to the conditions specified in sub-clauses (iii), (iv), (v), and (vi) of clause (b) of Sub-Section (1) of Section 114:

(a) Widows:

• A widow is exempted from filing a return of income for the tax year 2019.

(b) Orphans below the age of twenty-five years:

• Orphans below the age of twenty-five years are not required to furnish a return of income.

(c) Disabled Persons:

• Individuals with disabilities are exempted from filing a return of income for the tax year 2019.

(d) Non-Resident Persons owning immovable property:

• Non-resident persons, specifically in the case of ownership of immovable property, are not obligated to file a return of income.

Sub-Section (4) of Section 115 further states that any person not obliged to furnish a return for the tax year 2019 because all their income is subject to final taxation under specific sections of the Income Tax Ordinance, 2001, must provide a statement to the Commissioner. This statement should include particulars related to the person’s income for the tax year in a prescribed form and verified in the manner specified by regulations.

Additionally, Sub-Section (4A) allows any person who has furnished a statement to submit a revised statement for the tax year 2019 if they discover any omission or incorrect statement. This revision can be made within five years from the end of the financial year in which the original statement was submitted.

Sub-Section (5) empowers the Commissioner to issue a notice in writing requiring any person, in his opinion, obligated to file a prescribed statement under this section but has failed to do so, to furnish the required statement within thirty days from the date of the notice. The Commissioner may specify a longer period in the notice or allow an extended period.

Sub-Section (6) clarifies that a notice under Sub-Section (5) may be issued in respect of one or more of the last five completed tax years.

These provisions under Section 115 of the Income Tax Ordinance, 2001, aim to streamline the process of tax compliance while recognizing the specific circumstances of certain individuals who are exempted from filing income tax returns for the tax year 2019. The exemptions are designed to provide relief to vulnerable groups such as widows, orphans, and disabled persons, aligning with the government’s efforts to create a fair and inclusive tax system.