FBR issues draft of new income tax return form: comments sought in seven days

The Federal Board of Revenue (FBR) has issued the draft of new income tax return forms for companies, individuals and association of persons (AOPs) pertaining to 'tax year 2008'. The board has amended Income Tax Rules, 2002 through SRO 841(I)/2008 issued here on Friday.
The draft of the new form of return has been issued under section 237 of the Income Tax Ordinance 2001 for companies, individuals and AOPs. The draft has been published for the information of all persons likely to be affected and notice has been given that the draft would be taken into consideration after seven days of its publication in the official Gazette, the FBR said.
According to SRO 841(I)/2008, any objection or suggestion, which may be received from any person, in respect of the said draft before the expiry of the deadline, would be considered by the board.
According to tax experts, apparently there is no change in the new income tax return forms. However, the FBR has delayed issuance of the draft of these forms, as the date for filing the return would be September 30, 2008. The issuance of draft on August 14 would give very little time to the consultants, lawyers and tax experts to comment on the draft form.
As Ramazan is also starting in September, there are little chances for extension in the date for filing of returns. The FBR should give maximum time to the stakeholders for commenting on the draft forms. In the past, returns forms were issued in the first week of July, soon after announcement of the budget in June. This practice was being observed in previous years. This would give ample time to the taxpayers to comment on the draft forms, they added.
The return of total income/statement of final taxation for companies has specified information pertaining to information on shareholders; liabilities; assets; sources; profit/loss accounts; adjustments; total/taxable income computation; payment refund and balance sheets related data.
The Annex 'A' of the form is related to depreciation, initial allowance and amortisation. Particulars of the depreciable assets include buildings; furniture; machinery/plant; motor vehicles etc. The information related to intangibles included any expenditure providing advantage or benefit for a period. The information relating to amortisation includes annual/business use/actual use.
The Annex 'B' of the form covers carry-forward and brought forward of unabsorbed depreciation, initial allowance, amortisation and business losses (Other than speculation business). The form has sought details and break-up of business losses B/F and C/F from 1998-99 to 2008.
Details also relate to unabsorbed depreciation, amortisation and losses of subsidiaries. The Annex 'C' covers tax already paid including adjustments paid with return. The information includes tax collected/deducted at source; adjustment of prior years/refunds determined by department; total tax already paid Workers Welfare Fund. The return for individuals and AOPs has sought information on proprietor/member/partners' name.