Mentally Retarded, Handicapped and Disabled Persons

MENTALLY RETARDED, HANDICAPPED AND DISABLED PERSONS MENTALLY RETARDED, HANDICAPPED AND DISABLED PERSONS By Qamar-ul-Islam, Advocate, Karachi Income Tax Ordinance 2001, under sub-clause (c) of sub-section (3) of section 115 includes a disabled person amongst (a) widow (b) orphan below the age of 25 years or (d) in the case of ownership of immovable property, a non-resident person who is not required to furnish a return of income. In a society where neither government nor the board is able to collect correct taxes nor taxpayers deposit what is due to be paid by them. Besides that, the collected taxes and revenues are generally misused, wasted, unutilized and embezzled. In such a scenario, no exemption is offered / available to mentally retarded, handicapped and disabled persons under Income Tax Ordinance, 2001 property taxes collected by local governments and cantonment boards, Customs. Federal Excise Sales Tax and other revenue boards Parents in order to secure their such children, like other mentally fit, also give shares in their properties and to secure such mentally retarded, disabled persons not only invest in their name, who have no ability to earn and look after themselves, but also pay taxes on their behalf. Cantonment Boards provided exemption from taxes to only widows of government servants, one of most privileged class already. but no exemption is given to mentally handicapped persons: also the Provincial Revenue Boards, Local Bodies etc like wise no exemption is available to such handicapped persons in Income Tax Ordinance 2001, in any of the schedules, although large number of items/incomes are given exemptions, which are generally misused and do' not deserve to be exempt too. So much so, that the, richest, most affluent class, rulers of country, the feudal lords are not brought in tax-net on one pretext or the other, jurisdiction etc. Under the circumstances, it is suggested that in all revenue statute books, federal, provincial, local or else i.e. Income Tax Ordinance, 2001, Property Taxes, Water Charges, Sewerage, Sales Tax, Federal Excise, Court Fee Act etc., due exemptions/notifications/S.R.O. are provided/issued with retrospect effect and any taxes so far collected from such persons be refunded with retrospective effect, without any limitations or exception LETTER FROM MADNI AND COMPANY, INCOME TAX/WEALTH TAX TO CHAIRMAN, FEDERAL BOARD OF REVENUE, (I.R.) (Re: Clarification regarding selection of cases for audit) The Chairman, Federal Board of Revenue, (I.R.) F.B.R. Secretariat, Islamabad. SUBJECT: CLARIFICATION REGARDING SELECTION OF CASES FOR AUDIT Respected Sir, This is in reference to the subject captioned above. Your kind clarification is necessitated for Selection of Cases for Audit as well as Explanation regarding declaration in shape of Income Tax Return and Definition of section 177 of the Income Tax Ordinance, 2001. It is needless to remind that the Tax Payers Facilitation being the focal aim of the ongoing reform process, any practice denting the taxpayer's confidence Must be avoided through the prudent application of the provisions of Income Tax Law: (1) What is the Status of. Information disclosed in the Income Tax Return in presence of Signed Declaration by a Tax Payer? (2) In presence of signed Declaration of Income Tax Returh, Does the theme of section 177 of the Income Tax Ordinance, 2001, in reality, fetches attention of Assessing Officer in selection of case on merely liking and disliking, Random Balloting, Parametric Selection? And what are the Parameters? (3) Does the declared version of the Tax Payer is a sufficient reason of selection of case under section 177 of the Income Tax Ordinance, 2001? (4) What is the definition of word, "recording reasons in writing" as envisage in section 177(1)(a) of the Income Tax Ordinance, 2001? (5) Whether section 177 of the Income Tax Ordinance, 2001, empowers the Commissioner for direct Selection of case for Audit by passing the sections 177(1)(a) and (b) of the Income Tax Ordinance, 2001? (6) Whether the Commissioner Inland Revenue may select a case of a Salaried Person for Audit? while such case is fulfilling the requirements of sections 114, 115(1) and 116(2) of the Income Tax Ordinance, 2001 as defined in the First Schedule, Part 1 "Rates of Tax" Division I and I(A)?