ISLAMABAD: Federal Board of Revenue (FBR) has launched a single page simplified draft income tax return form for business individuals and Association of Persons (AOPs) having annual turnover less than Rs50 million.
The draft return form has been issued through SRO 1261(I)/2020 dated November 26, 2020, which will be finalized after consultation with stakeholders. The draft return form is issued for tax year 2020 for which the last date of filing is December 08, 2020.
The simplified return form of income has been issued for small scale manufacturers having turnover less than Rs50 million. A single page draft wealth statement form is also issued along with the draft return of income.
In the draft return form, the manufacturers would be required to provide limited information about their earnings and expenditures during a year.
The details, as per draft return of income, to be provided by the manufacturers are included: gross sale excluding sales tax and federal excise duty; cost of sales; opening stock; purchases (domestic/imports); closing stock; other direct expenses; gross profit; profit and loss expenses; total income; tax chargeable; tax payable; tax already paid through utility bills; net tax payable/refund etc.
Similarly, the taxpayer shall require to provide details, as per draft wealth statement form, are included: immovable assets; manufacturing unit; moveable assets; business capital; investment/advance; cash in hand/bank; loan/liabilities; net assets; reconciliation of net assets; net assets current year; net assets previous year; increase/decrease in net assets; income as per return; other inflows (gift, loan, remittances, etc.); outflows (gift, loan etc.); and personal expenses.
