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Karachi Tax Bar seeks removal of flaws in IT return form

Karachi Tax Bar seeks removal of flaws in IT return form

KARACHI: The Karachi Tax Bar Association (KTBA) has written to the Federal Board of Revenue (FBR), asking it to remove flaws in new income tax return form for tax year 2014.
In its letter, the KTBA pointed out that the board has uploaded the income tax returns along with allied annexure and wealth statement on its web portal without the issuance of SRO.
The letter pinpointed that there was a check at serial no 15 which may be used by the e-filers whereas manual filers would not be able to incorporate date of birth in the return, a necessary requirement to avail 50 percent tax benefit for senior citizens. Similarly, column for gender identification is also missing, which is also necessary as some of the names are commonly used for both the genders. It said that return form had neither carried the column for the name of the employer nor given separate column for getting tax exemption.
Moreover, it said that serial no 36 related to credit of tax collected under Section 236 of the Ordinance required connection date, but said information had no nexus with the requirement since the telephone/cell number was already required to be furnished. Therefore, column of connection date may kindly be deleted as it will create unnecessary hardship for the taxpayers, the letter said.
The KTBA was of the view that format of earlier Annexure D for tax year 2013 contained quite exhaustive and sufficient information and was more convenient and user-friendly for the taxpayers. As such the Annexure F, which is irrelevant, may be shaped in the format of earlier Annexure D with certain changes like removing the words optional for certain expenses. Moreover, it said that Zakat allowance column, which was not included in the return form, must be added as per section 60 of the Ordinance.
The KTBA in the letter said that column 12 of Cash-in-Hand/Cash-at-Bank (Non-Business) was also not practically possible and it should also be replaced as per the relevant column of Wealth Statement for tax year 2013. It said that there were certain formula mistakes and errors which were not addressed in the letter but would communicate to the board in near future. It also urged the authority to consider KTBA’s suggestions and proposals to provide maximum relief to the taxpayers.