FBR Issues Simplified Income Tax Return Form for Small Retailers

The Federal Board of Revenue (FBR) has issued a simplified income tax return form for retailers having an annual turnover of less than Rs. 10 million. The FBR issued SRO.1892(I)/2022 to propose amendments to the Income Tax Rules 2002 on Thursday. The new return form would be applicable for the tax year 2022. In the new return form, traders and retailers have to declare basic information like business turnover/receipts, cost of sales, opening stocks, purchases, other expenses, closing stocks, gross profits, profit and loss expenses, and other information. The FBR has also issued a return form for the individuals and the association of persons (AOPs) having turnover of up to Rs. 50 million. Through SRO1891(I)/2022, the FBR has prescribed the relevant form for taxpayers with regard to payment of tax on immovable properties under Section 7E – the tax on deemed income basis under the Income Tax Ordinance, 2001. The FBR has asked the taxpayers to specify the total value of the capital assets taxable under section 7E, deemed income under section 7E, and tax on deemed income under section 7E. The form has also prescribed separate columns for the cost/declared value and fair market value of the immovable property.