How to de-register from income tax or in simple words how to cancel or delete National Tax Number NTN in Pakistan?
This question arose in many tax payer especially who registered AOP and Companies. As once closed business they required to do so.
In Income Tax Rules there is no rule specific for this purpose. In Income tax laws only section 117 describe the procedure and guidelines for deregistration of National Tax Number.
Section 117 of Income Tax Ordinance 2001
Notice of discontinued business
(1) Any person discontinuing a business shall give the Commissioner a notice in writing to that effect within fifteen days of the discontinuance.
(2) The person discontinuing a business shall, under the provisions of this Ordinance or on being required by the Commissioner by notice, in writing, furnish a return of income for the period commencing on the first day of the tax year in which the discontinuance occurred and ending on the date of discontinuance and this period shall be treated as a separate tax year for the
purposes of this Ordinance.
(3) Where no notice has been given under sub-section (1) but the Commissioner has reasonable grounds to believe that a business has
discontinued or is likely to discontinue, the Commissioner may serve a notice on the person who has discontinued the business or is likely to discontinue the business to furnish to the Commissioner within the time specified in the notice a return of income for the period specified in the notice.
(4) A return furnished under this section shall be treated for all purposes of this Ordinance as a return of income, including the application of Section 120.