ISLAMABAD: A person deriving income salary is required to retain salary certificate indicating amount of salary and tax deducted for six years, sources said on Friday.
The sources said that the requirement of retaining record for six years is mandatory under income tax laws.
Similarly taxpayers deriving income from property are required to retain following records for six years:
a. Tenancy agreement, if executed;
b. Tenancy termination agreement, if executed;
c. Receipt for amount of rent received; and
d. Evidence of deductions claimed in respect of premium paid to insure the building, local rate, tax, charge or cess, ground rent, profit/interest or share in rent on money borrowed, expenditure on collecting the rent, legal services and unpaid rent.
In case taxpayers deriving income from capital gains, the following documents shall be retained for six years:
a. Evidence of cost of acquiring the capital assets;
b. Evidence of deduction for any other costs claimed; and
c. Evidence in respect of consideration received on disposal of the capital asset.
In case taxpayers deriving income from other sources are required to keep following records for six years:
a. Dividend; dividend warrants.
b. Royalty; Royalty agreement
c. Profit on debt: Evidence and detail of profit yielding debt; Evidence of profit on debt and tax deducted thereon, like certificate in the prescribed form or bank account statement; and evidence of Zakat deducted, if any.
d. Ground rent, rent from the sub-lease or land or building, income from the lease of any building together with plant or machinery and consideration for vacating the possession of a building or part thereof: Lease agreement; and lease termination agreement.
e. Annuity or pension: evidence of amount received.
f. Prize money on bond, winning from a raffle, lottery or cross word puzzle: Evidence of income and tax deducted thereon, like certificate in the prescribed form.
g. Provision use or exploitation of property: agreement
h. Loan, advance, deposit or gift: evidence of model of receipt of a loan, advance, deposit or gift i.e. by a crossed cheque or through a banking channel.
i. General: Evidence of deduction for any other expenditure claimed.