ISLAMABAD: The newly-introduced e-filing of returns facility by Federal Bureau of Revenue (FBR) has been ensuring ease and avoiding complications in filing of tax returns.
Highlighting the initiatives adopted to simplify the process of e-filing of returns, official sources on Friday said a person deriving income under one head of income is just required to fill in relevant information in the relevant tab.
A software called Integrated Revenue Information System (IRIS) is a web based integrated system for e-filing of returns has been launched to simplify the process while exclusive tabs have been introduced for each different head of income.
The sources said in order to simplify the process of filling in returns, some basic information has already been fed into the system. Furthermore certain fields in tax return have been made optional.
The IRIS software computes tax liability, tax credits etc. automatically, thereby simplifying the process of tax computation for the taxpayer.
Furthermore, step by step instructions for filling in the e-returns are also available. In addition, an elaborate mechanism of providing assistance /guidelines to taxpayers is available in form of FBR’s helpline as well as taxpayer facilitation centres located at different stations.
The sources said in order to streamline and expedite the process of issuance of refunds, applications are now filed online by taxpayers through the IRIS system and added indepth discussions were held with stakeholders and the Voluntary Tax Compliance Scheme (VTCS) was introduced through which traders were facilitated and allowed to file a single page income tax return under the simplified special provision of section 99A of the Income Tax Ordinance, 2001 read with the Ninth Schedule to the Ordinance. Answering a question, the sources said amendments in the income tax law is a continuous process, therefore, income tax returns have to be tailored accordingly each year to reflect the relevant changes in law.
Therefore, it is difficult to give a timeline for the simplification of tax returns once and for all. The FBR is, however, making concerted efforts to simplify tax return forms so that tax payers can file their tax returns with ease. Towards this end, every year, a simplified draft income tax return is published on the official website of FBR and comments/suggestions are sought from all stakeholders to further simplify the return.
The sources said suitable changes are made in the return, based on the feedback received, prior to notification of the final tax return. A complete set of instructions on how to fill manual tax returns is also available along with the return.
However, some of the filers found the on line filing of the tax return complicated as they failed to ascertain which form was applicable for their particular salary/business requirements. Most of the people who were trying to file their returns on line, had to seek help of some expert for which the FBR needs to revisit the facility and make it more elaborative.