Ascertainment of Statutory Income

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Chapter X

• Ascertainment of Statutory Income

10.01 Statutory Income Basis This is the income
from each source of income for a year of
assessment 10.02 Accounting Period 12 months
period ending 31st March each year
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• Ascertainment of Statutory Income

10.03 Accrual or Cash Basis? Generally, if
accounts are prepared on accrual basis, SI also
has to be taken on that basis. But, professionals
generally maintain accounts on cash basis and for
them SI can be on cash basis. 10.04 Change in
Accounting Period If unable to comply with the
specified period you will have to write to CGIR
with reasons.
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• Ascertainment of Statutory Income

10.04 Change in Accounting Period (Contd..) CGIR
with his discretion may direct the person to make
his accounts to a different period. But, this is
subject to revocation at any time. 10.05 Total
Statutory Income Is the aggregate of statutory
income for a year of assessment from every source
of profits/income for which tax is chargeable.
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• Ascertainment of Statutory Income

• 10.06 Statutory Income of a Child
• The SI of a child is aggregated with that of his
  parent in the following circumstances
• Parent must be a resident individual
• If the marriage subsists it is aggregated with
  father
• If the marriage doesnt subsist it is aggregated
  with of the parent who maintains the child and
  with whom he lives with.

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• Ascertainment of Statutory Income

• 10.06 Statutory Income of a Child (Contd..)
• Definition of a Child
• Who is under 18 years
• Adopted Child (in accordance with Adoption of
  Children Ordinance or related law of the country
  which he is a citizen)
• Doesnt Include
• Married child
• Illegitimate child
• Child adopted under any other law

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Chapter XI

• Ascertainment of Assessable Income

• Definition
• AI TSI Section 29 Deductions
• From 01.04.2002 the AI of a person (other than a
  company) will not include
• Interest (section 122A 122 B) and Dividend
  income where WHT has been deducted

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Chapter XI

• Ascertainment of Assessable Income

• Definition
• AI TSI Section 29 Deductions
• From 01.04.2002 the AI of a person (other than a
  company) will not include
• Interest (section 122A 122 B) and Dividend
  income where WHT has been deducted