How to become Income Tax Practitioner

This blog will discuss on how to become Income Tax Practitioner in Pakistan (complete guide on how to become ITP in Pakistan) with full overview of process of becoming ITP and templated needed to file application for Income Tax Practitioner.

As per section 223 of the Income Tax Ordinance, 2001 “Income Tax Practitioner” means a person who is registered as such by the Federal Board of Revenue, being a person who possesses such qualifications as may be prescribed for the purposes of this section or who has retired after putting in satisfactory service in the Income Tax Department for a period of not less than ten years in a post or posts not below that of Income Tax Officer.

This article is for those professionals who want to become ITP in Pakistan and follow these simple instructions to become ITP in Pakistan and serve people for their tax affairs in Pakistan.

Registration of ITP under rule 87 of Income Tax Rules, 2002

On receipt of an application under rule 85, the “Chief Commissioner”, Regional Tax Office may make such further enquiries and call for such further information or evidence as may be considered necessary.

(2) If the “Chief Commissioner”, Regional Tax Office is satisfied that an applicant qualifies to be registered as an income tax practitioner, the “Chief Commissioner”, Regional Tax Office shall cause the applicant’s name to be entered in a register to be maintained for the purpose in the office.

(3) The name of a person entered on the register of income tax practitioners shall be notified to the Commissioner and the Appellate Tribunal.

(4) The “Chief Commissioner”, Regional Tax Office shall notify ‘the applicant, in writing, of the decision on the application.

(5) Where the “Chief Commissioner”, Regional Tax Office decides to refuse an application for registration, the notice referred to in sub-rule (4) shall include a statement of reasons for the refusal.

Duration of registration of Tax Practitioner

Registration of a person as an Income Tax Practitioner shall end/ terminated when:

• the person surrenders the registration by notice in writing to the “Chief Commissioner”, Regional Tax Office.
• the person dies; or
• the person’s registration is terminated by the “Chief Commissioner”, Regional Tax Office

Application for registration as an ITP

A person satisfying the requirements in rule 86 of Income Tax Rules 2002 and desiring to be registered as an income tax practitioner shall make an application to the “Chief Commissioner”, Regional Tax Office in the form specified in Part X of the First Schedule to Income Tax Rules, 2002.

Every application under this rule shall be accompanied by

• Treasury receipt for five hundred rupees required to be deposited as a non-refundable application fee in any Government Treasury; and such documents, statements and certificates as specified in the form

Prescribed qualification for registration as an income tax practitioner

As per rule 86 of Income Tax Rules, 2002 the  “income tax practitioner” in sub-section (11) of section 223, a person applying for registration as an income tax practitioner shall:-

Possesses one of the following qualifications, namely

• A degree in Law at least in the second division, a degree in Commerce (with Income Tax Law and Accounting or Higher Auditing as subjects or parts of subjects, whether compulsory or optional) or a degree in Business Administration or Business Management (with Accounting and Income Tax Law as subjects or parts of subjects, whether compulsory or optional) conferred by a prescribed institution; or
• A pass in a prescribed accounting examination.

The applicant must have worked for a continuous period of one year as an apprentice under the supervision of a chartered accountant, cost and management accountant, legal practitioners entitled to practice in a civil court in Pakistan or a registered income tax practitioner and having been registered as a chartered accountant, cost and management accountant, legal practitioner and income tax practitioner for a period of not less than ten years.

For the purposes of sub-clause (i) of clause (a) of sub-rule (1), a degree conferred by a prescribed institution that is a foreign university or institution shall only qualify if the degree is equivalent to a degree conferred by a Pakistani university and is recognized as such by a Pakistani university.

What is “Prescribed Accounting Examination”

• an examination equivalent to the intermediate examination conducted by the Institute of Chartered accountants of Pakistan;
• an examination equivalent to the intermediate examination conducted by any foreign institute of chartered accountants and recognized by the Institute of Chartered Accountants of Pakistan as equivalent to its intermediate certificate;
• an examination equivalent to the final examination conducted by the Association of Chartered Certified Accountants, United Kingdom;
• Part-III of examination for Cost and Management Accountants conducted by the Institute of Cost and Management Accountants under the Cost and Management Accountants Act, 1966 (XIV of 1966); and
• Certified public accountants of USA

After your application to become ITP is submitted then you will be called for an interview by the Board and if they are satisfied with the interview they will issue certificate containing your identity and particulars for onward processing.

In case you are sure of your preparation for ITP interview you can join Income Tax Practitioner Course.

What is required for ITP application?

• ITP Form under section 223 of the Income Tax Ordinance
• Affidavit for ITP to be attached with ITP Application
• ITP Fees Rs. 500/- to be deposited in government treasury
• Affidavit Rs.50/-
• Copy of degree
• Copy of CNIC
• 2 Photographs
• Certificate of experience for one year