The Federal Board of Revenue has added another requirement to Annexure-D of the income tax return form for the Tax Year 2011 to disclose share of expenses contributed by family members of the taxpayers. The FBR has issued income tax circular 18 of 2011 here on Friday in this regard. In the income tax return form, a new line has been provided to write the "contribution by family members" in the Annex-D.
Sources told Business Recorder that a new column has been added to serial number 11 of the Annex-D to declare quantum of expenses shared by family members of a taxpayer. Earlier, taxpayer was required to disclose certain expenses of personal nature in Annex-D. Now as per recent amendment taxpayer is also obliged to disclose the contribution of other family members in the annex-D, which will be subtracted from the total amount declared by taxpayer on account of personal and household expenditure.
Sources added that normally most of the taxpayers are living under joint family system in Pakistan. Therefore, it seems that the recent amendment will rationalise the issue of reconciliation of personal expenses with the declared income because there would be chances that amount expended on account of utilities may not reconcile with the declared quantum of income.
Meanwhile, a press release issued by the FBR says, the Federal Board of Revenue has issued here today Circular No 18 of 2011 (Income Tax), regarding amendments in Annexure-D to the Tax Return Form for the Tax Year 2011. The Circular states that after consultation with the FPCCI, chambers of commerce/trade bodies and tax bars of the country, the following changes are made in Annex-D to the tax return form for the tax year, 2011:
i. Break-up of "Education of children/spouse/self' is made optional, which can be included in Sr-9.
ii. ii. Break-up of "Travelling (foreign and local)" is made optional, which can be included in Sr-9.
iii. "Motor vehicle in use (whether owned or not) running and maintenance including lease rental and insurance" is simplified as, "Running and maintenance expenses of Motor vehicle(s)". A new line has been provided to write: "Contribution made by the family members," the FBR added.