The Federal Board of Revenue (FBR) has issued a new income tax return form for manufacturers having an annual turnover of less than Rs. 50 million for the tax year 2020.
The FBR has also issued the draft of the simple wealth statement for manufacturers with annual turnover up to Rs. 50 million.
The FBR has issued SRO.1261(I)/2020 to notify the draft of the income tax return form for the individuals and Association of Persons (AOPs) falling within the category of manufacturers having an annual turnover less than Rs. 50 million.
Form-A covers the new income tax return form, and Form-B is related to the wealth statement.
A senior FBR official told ProPakistani that the purpose of introducing this new income tax return form and wealth statement is for the facilitation of small taxpayers, including manufacturers. The FBR has given seven days to the stakeholders for comments before finalization of the new form and wealth statement.
The basic information required under the new form includes the name of the taxpayer, status, National Tax Number, address, and ownership.
The simplified return form covers the areas of description and total income. The description covers gross sales excluding ST/FE, cost of sales, opening stock, purchases (Domestic/Imports), closing stock, other direct expenses, gross profit, and profit and loss expenses.
Total Income covers the information of inadmissible tax deductions, admissible tax deductions, deductible Allowance Net Profit or taxable income, tax chargeable, tax credit, tax payable whichever is higher, tax already Paid- elec-tel-other, electricity, telephone, and net tax payable or refundable.
Through the new wealth statement, the FBR has sought the details of immovable assets, manufacturing unit, moveable assets, business capital, investment or advance, cash in hand or bank, loan or liabilities, and net assets.
The reconciliation of net assets would also be done with the help of information of net assets of the current year, net assets pf previous year, increase or decrease in assets, income as per return, other inflows (gift, loan, remittance, etc), outflows (gift, loan, etc) and personal expenses.