The Central Board of Revenue (CBR) will issue one-page simplified income tax return form on July 23 or 24 after taking approval from the Board-in-Council.
Sources told Business Recorder here on Sunday that CBR would amend the 'proposed income tax form' as per recommendations of business community, traders and chartered accountant firms to incorporate viable suggestions.
In this connection, CBR Member Taxpayer Education and Facilitation Habib Fakhruddin is actively interacting with trader's representatives in all major cities of the country.
The CBR arranged focus group meetings with traders and representatives of business community to identify practical difficulties being faced by them in filling the new return.
The CBR recently issued draft forms through amendment in the Income Tax Rules 2002. The draft will be shortly notified and those filing return in September 2004 will use the new forms, which would encourage voluntary compliance.
The retailers having turnover of up to Rs 5 million (individual status or AOP) constitute over 75 percent of the returns.
They have to give simple statement of final taxation, turnover and acknowledgement receipt and those exclusively falling in this category would be exempted from audit.
Businesses, trade and profession (individuals or AOPs) constituting less than 25 percent of the returns were not required to declare personal expenditure on mobile phones, residential electricity/telephone/gas/children education and motor vehicles maintenance.
These non-salaried individuals will only submit a single-page return (income statement).
The new income tax return forms have been introduced for convenience of the retailers. It is a one-page form with separate annextures for each source of income. A taxpayer would have to fill-in and attach the required annexture only.
Taxpayers should not be worried about the number of annexes because these annexes have only been made available to cater for all categories of taxpayers. If every taxpayer looks at the annexes applicable to him or her, in majority of the cases it would be one or two annexes only that would be applicable.
Excluding this category of retailers with turnover not exceeding Rs 50,00,000, individual and AOPs from any business, trade and profession will only have to file one page return of income accompanied with a simple annex of income statement and other annexes, if applicable.
In the case of an importer, exporter, supplier, contractor, goods transport vehicles and a person receiving dividends or prize money will only file a simple one page statement of final taxation.