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Self Assessment involves completing an online or paper tax return in order to

tell the government about your income and capital gains (profits on the sale of certain
assets), or to claim tax allowances or reliefs against your tax bill. The government uses
the figures on the tax return to work out your tax bill, or the applicant can work it out
themselves.

There are different types of tax return and different 'supplementary pages' the
applicant may need to complete depending on their circumstances. There are also
deadlines for sending your tax return in - and penalties and interest charges if it
arrives late.

Ref: _
_
  
 
_ 

The Self Assessment Scheme (SAS) was introduced in Pakistan in 2001, where
the tax payer was given the leverage to declare their incomes themselves and file a
return annually declaring those incomes derived from other sources. The system was
introduced for the first time in the region of South Asia; keeping in mind the tax
payers will declare their incomes themselves in the best of their integrity.

Though in developing countries like Pakistan, tax payers often try evasive
measure to avoid taxation but this resulted in a positive trend in our region. The
government collected more revenue than before in contrast to the old system where an
Income Tax Officers (ITO) used to go door step to door step to assess and collect the
income tax derived from the tax payer.

Income Tax

An income tax is a tax levied on the income of individuals or business

(corporations or other legal entities). Various income tax systems exist, with varying
degrees oftax incidence. Income taxation can be progressive, proportional,
or regressive.

A personal or individual income tax is levied on the total income of the

individual (with some deductions permitted). It is often collected on a pay-as-you-
earn basis, with small corrections made soon after the end of the tax year. These
corrections take one of two forms: payments to the government, for taxpayers who
have not paid enough during the tax year; and tax refunds from the government for
those who have overpaid. Income tax systems will often have deductions available that
lessen the total tax liability by reducing total taxable income. They may allow losses
from one type of income to be counted against another. For example, a loss on the
stock market may be deducted against taxes paid on wages.

Ref:_
 


  
 
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