Income Tax Ordinance, 2001

CHAPTER-X

PROCEDURE PART VIII RECORDS, INFORMATION COLLECTION AND AUDIT

From: 2023-07-01 - To: 0000-00-00 174. Records.- (1) Unless otherwise authorised by the Commissioner, every taxpayer shall maintain in Pakistan such accounts, documents and records as may be prescribed. (2) The Commissioner may disallow 1[or reduce] a taxpayer’s claim for a deduction if the taxpayer is unable, without reasonable 2[cause], to provide a receipt, or other record or evidence of the transaction or circumstances giving rise to the claim for the deduction. (3) The accounts and documents required to be maintained under this section shall be maintained for 3[six] years after the end of the tax year to which they relate 4[:] 5[Provided that where any proceeding is pending before any authority or court the taxpayer shall maintain the record till final decision of the proceedings. Explanation.- Pending proceedings include proceedings for assessment or amendment of assessment, appeal, revision, reference, petition or prosecution and any proceedings before an Alternative Dispute Resolution Committee 6[: Provided that limitation prescribed under this sub-section shall not apply to the records pertaining to income, assets, expenses or transactions to which clause (ii) of sub-section (2) of section 111 applies.] 7[(4) For the purpose of this section, the expression “deduction” means any amount debited to trading account, manufacturing account, receipts and expenses account or profit and loss account.] 8[(5) The Commissioner may require any person to install and use an Electronic Tax Register of such type and description as may be prescribed for the purpose of storing and accessing information regarding any transaction that has a bearing on the tax liability of such person.] ____________________________________________________________________ 1-The words were inserted vide the Finance Act, 2003 (I of 2003 assented on 16th June, 2003) 2-Substituted for the word “excuse” vide the Finance Act, 2003 (I of 2003 assented on 16th June, 2003) 3-The word “five” was substituted vide the Finance Act, 2010 (XVI of 2010). This amendment was effective from 5th June, 2010 by the declaration made under the provisional Collection of Tax Act, 1931). Earlier this amendment was…