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FBR issues draft of IT return forms & wealth statement

FBR issues draft of IT return forms & wealth statement

ISLAMABAD: The Federal Board of Revenue (FBR) has issued draft Income Tax Return Forms and Wealth Statement for individuals and association of persons (AOPs) for tax year 2018.

The FBR has notified the draft returns through an S.R.O. 880 (I)/2018 issued here on Friday.

This notification shall be applicable for tax year 2018 for electronic as well as manual filing of Income Tax Return Forms and Wealth Statements. As per FBR draft return form, the following persons are required to furnish a return of income for a tax year:

(a) Every company; (b) Every person (other than a company) whose taxable income for the year exceeds Rs 400,000; (c) Every non-profit organization as defined in clause (36) of section 2; (d) Every welfare institution approved under clause (58) of Part I of the Second Schedule; (e) Every person who has been charged to tax in respect of any of the two preceding tax years; (f) Every person who claims a loss carried forward under this Ordinance for a tax year; (g) Every person who owns immovable property with a land area of two hundred and fifty square yards or more or owns any flat located in areas falling within the municipal limits existing immediately before the commencement of Local Government laws in the provinces; or areas in a Cantonment; or the Islamabad Capital Territory; (h) Every person who owns immoveable property with a land area of five hundred square yards or more located in a rating area; (i) Every person who owns a flat having covered area of two thousand square feet or more located in a rating area; (j) Every person who owns a motor vehicle having engine capacity above 1000 CC; (k) Every person who has obtained National Tax Number; (l) Every person who is the holder of commercial or industrial connection of electricity where the amount of annual bill exceeds rupees five hundred thousand; (m) Every person who is registered with any chamber of commerce and industry or any trade or business association or any market committee or any professional body including Pakistan Engineering Council, Pakistan Medical and Dental Council, Pakistan Bar Council or any Provincial Bar Council, Institute of Chartered Accountants of Pakistan or Institute of Cost and Management Accountants of Pakistan; (n) Every individual whose income under the head Business exceeds Rs 300,000 but does not exceed Rs 400,000 in a tax year, FBR added.

Individuals deriving income under the head Property, Capital Gains & Other Sources (excluding Salary / Business) & Income subject to fixed / final tax have to file one page Return in IT-1B Form with Annex-A, Annex-F & Wealth Statement if required to be filed. Individuals deriving income under the head business or falling under Final Tax Regime (FTR) such as Commercial Importers, Exporters, Contractors, etc. have to file two page Return in IT-2 Form with Annex-A, Annex-B, Annex-F & Wealth Statement if required to be filed. AnnexC, Annex-D & Annex-E are required only where Depreciation /Amortization, Admissible/ Inadmissible Deductions & Minimum Tax Chargeable/Option out of Presumptive Tax Regime are involved. Individuals, including members of AOPs or directors of Companies must file Wealth Statement.

According to the FBR, the draft of certain further amendments in the Income Tax Rules, 2002, which the Federal Board of Revenue proposes to make in exercise of the powers conferred by sub-section (1) of section 237 of the Income Tax Ordinance, 2001, is hereby published for information of all persons likely to be affected thereby and notice is hereby given that the draft shall be taken into consideration by the FBR after seven days of its publication in the official Gazette.

Any objection or suggestion which may be received from any person, in respect of the said draft, before expiry of the aforesaid period, shall be taken into consideration by the FBR, notification added.