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" OBJECTIONS/SUGGESTIONS IN TAX RETURNS, 2011   OBJECTIONS/SUGGESTIONS IN TAX RETURNS, 2011   [S.R.O. 850(I)/2011]   By   Waheed Shahzad Butt, Advocate, Lahore   Certain amendments in the Income Tax Rules, 2002 have been announced under Notification S.R.O. 850(1)/2011 dated September 17, 2011 wherein proposed income tax return forms for Companies (IT-1) and for Individual/AOP (IT-2) for Tax Year 2011 have been published for the information of all persons likely to be affected. There are certain issues in the proposed tax returns which needs clarification/modification/ alteration, therefore, following objections/suggestions are forwarded for necessary action at your end:--   COMMON ISSUE IT-1 & IT-2 [Levy of 15% Surcharge]   1. In the portion of Tax Computation, proposal to compute the 15% Surcharge on proportionate basis against proportionate net income tax chargeable for 3-1/2 months proportionate income is apparently a mistake of law.   2. The levy of surcharge in the proposed tax returns is contrary to the clear wording of the law. Income Tax (Amendment) Ordinance, 2011 inserted a new section 4A in the Income Tax Ordinance, 2001 on March 15, 2011. The law categorically says that it is to be paid @15% of the income tax payable for the period commencing from the promulgation of this Ordinance, till the 30th June 2011, relevant text of newly inserted section 4A is reproduced:-   "4A. Surcharge.---(1) Subject to this Ordinance, a surcharge shall be payable by every taxpayer at the rate of fifteen percent of the income tax payable under this Ordinance including the tax payable under Part V of Chapter X or Chapter XII, as the case may be, for the period commencing from the promulgation of this Ordinance, till the 30th…