The Federal Board Revenue has issued a simplified one-page income tax return form for the retailers having annual turnover upto Rs 5 million to encourage retail sector to voluntarily file their returns. In this connection, the FBR has issued SRO.727(I)/2012 to issue the draft of the new income tax return forms for individuals and Association of Persons (AOPs) for Tax Year 2012.
The FBR has given time period of 15 days to the stakeholders to submit their input on the proposed return forms. The FBR will notify the return forms in the official gazette taking into account viewpoint of stakeholders. The FBR has introduced IT-4 return form for retailers having annual turnover up to Rs 5 million, but not having any other taxable source of income. The retailers would only have to mention the opening stock, net sales during the year, closing stock, turnover tax payable and turnover tax Paid and other related information.
Sources told Business Recorder that the unique feature of the new return form is that the FBR for the first time issued a simplified return form for the retailers having annual turnover up to Rs 5 million. For small and medium retailers, the Board has issued a one-page return form which would improve compliance and encourage documentation. At present, the retailers are reluctant to come forward and file the income tax return forms.
Now, the retailers can easily fill the return form without seeking help of the tax officers, tax consultants, lawyers and chartered accountants. The retailers can themselves file the one-page returns without the help of the tax experts. This would encourage voluntarily return filing by the retails sector. In the presence of the simplified return form, the documentation of the retailers would be improved as it is very easy to fill the simplified returns form by the retailers, who are operating out of the tax net.