ISLAMABAD: The Federal Board of Revenue (FBR) has
issued draft income tax return form for the tax year 2013 and is seeking
feedback from taxpayers.
“We have introduced the necessary changes in the draft form and are looking forward to feedback on it from the taxpayers”, Member Policy Inland Revenue Service Shahid Hussain Asad told Dawn on Thursday.
Last date for submission of feedback on the return form is September 10, 2013. The major change in the return form was the inclusion of the five page wealth statement.
“No return will be accepted without the filing of the wealth statement by the taxpayers,” Asad said.
All salaried and non-salaried taxpayers would have to file tax returns and wealth statements from tax year 2013 irrespective of the income or value of the assets. The filing of wealth statement and wealth reconciliation statement would be made mandatory for all taxpayers, he added.
The law does not exempt any taxpayer — salaried or non-salaried — from filing of tax returns because exemption threshold for filing returns has been done away with.
The exemption threshold of Rs400,000 would be there for individuals only in terms of income tax assessment, but the filing of tax returns was mandatory across the board, whether income tax was deducted or not in a tax year.
Earlier, employers’ statement about deduction of income tax from salary was accepted as tax return for salaried people with income of up to Rs500,000. This relaxation is no more there for low salaried people who also have to file tax returns and wealth statement.
Asad said that wealth statement will seek information about movable and immovable assets. He said all taxpayers will have to provide details about their bank accounts for the purpose of deduction of income support levy of 0.5 per cent.The income support levy will be levied on those taxpayers who have more than Rs1 million cash in bank accounts. Asad said that taxpayers will have to submit bank statements along with returns as a proof whether the cash amount in all personal banks accounts is less than the threshold or more.
The limit of Rs1m or more (declared income or assessed for filing of wealth statement) has also been done away with.
Everyone under the final tax regime has also been asked to file wealth statement irrespective of the amount of tax paid. Currently, filing of wealth statement was mandatory only where the amount of tax paid was Rs35,000 or more in the final tax regime.
The provision of revised wealth reconciliation and disclosure of reasons at the time of filing of revised wealth statement was also introduced in the budget 2013-14.
Only 7,11,940 people filed tax returns, including employer statements in tax year 2012.
Asad further said that in the business return form, the filing of balance sheet would be made mandatory for the business community.
All taxpayers declaring agricultural income in tax returns will have to provide evidence of tax paid on the income to the provincial revenue department. Unexplained income or assets will be liable to be included in a person’s income chargeable to tax in the tax year. The FBR will also allow CNIC issued by Nadra in place of National Tax Number (NTN).
“We have introduced the necessary changes in the draft form and are looking forward to feedback on it from the taxpayers”, Member Policy Inland Revenue Service Shahid Hussain Asad told Dawn on Thursday.
Last date for submission of feedback on the return form is September 10, 2013. The major change in the return form was the inclusion of the five page wealth statement.
“No return will be accepted without the filing of the wealth statement by the taxpayers,” Asad said.
All salaried and non-salaried taxpayers would have to file tax returns and wealth statements from tax year 2013 irrespective of the income or value of the assets. The filing of wealth statement and wealth reconciliation statement would be made mandatory for all taxpayers, he added.
The law does not exempt any taxpayer — salaried or non-salaried — from filing of tax returns because exemption threshold for filing returns has been done away with.
The exemption threshold of Rs400,000 would be there for individuals only in terms of income tax assessment, but the filing of tax returns was mandatory across the board, whether income tax was deducted or not in a tax year.
Earlier, employers’ statement about deduction of income tax from salary was accepted as tax return for salaried people with income of up to Rs500,000. This relaxation is no more there for low salaried people who also have to file tax returns and wealth statement.
Asad said that wealth statement will seek information about movable and immovable assets. He said all taxpayers will have to provide details about their bank accounts for the purpose of deduction of income support levy of 0.5 per cent.The income support levy will be levied on those taxpayers who have more than Rs1 million cash in bank accounts. Asad said that taxpayers will have to submit bank statements along with returns as a proof whether the cash amount in all personal banks accounts is less than the threshold or more.
The limit of Rs1m or more (declared income or assessed for filing of wealth statement) has also been done away with.
Everyone under the final tax regime has also been asked to file wealth statement irrespective of the amount of tax paid. Currently, filing of wealth statement was mandatory only where the amount of tax paid was Rs35,000 or more in the final tax regime.
The provision of revised wealth reconciliation and disclosure of reasons at the time of filing of revised wealth statement was also introduced in the budget 2013-14.
Only 7,11,940 people filed tax returns, including employer statements in tax year 2012.
Asad further said that in the business return form, the filing of balance sheet would be made mandatory for the business community.
All taxpayers declaring agricultural income in tax returns will have to provide evidence of tax paid on the income to the provincial revenue department. Unexplained income or assets will be liable to be included in a person’s income chargeable to tax in the tax year. The FBR will also allow CNIC issued by Nadra in place of National Tax Number (NTN).
