The Federal Board of Revenue (FBR) has introduced a streamlined income tax return form for merchants with less than Rs. 10 million in yearly revenue.
On Thursday, the FBR released SRO.1892(I)/2022 proposing changes to the Income Tax Rules 2002. The revised form would be effective for the tax year 2022.
Traders and merchants must disclose basic information such as business turnover/receipts, cost of sales, opening stocks, purchases, other costs, closing stocks, gross earnings, profit and loss expenses, and other information on the new return form.
The FBR has also prepared a return form for individuals and associations of people (AOPs) with up to Rs. 50 million in annual revenue.
The FBR has prescribed the required form for taxpayers in relation to the payment of tax on immovable assets under Section 7E – the tax on presumed income basis under the Income Tax Ordinance, 2001, under SRO1891(I)/2022.
The FBR has requested that taxpayers indicate the entire amount of capital assets taxable under section 7E, considered income taxable under section 7E, and tax on presumed income taxable under section 7E. The form also includes columns for the immovable property’s cost/declared value and fair market value.