Federal Board of Revenue (FBR) on Wednesday issued a simplified single-page income tax return form for small manufacturers a day after when the last date for filing income tax return was expired.
The FBR issued SRO 1316(I)/2020 dated December 09, 2020 to notify the simplified income tax return form for individuals and Association of Persons (AOPs) having annual turnover less than Rs50 million.
Previously, the FBR issued the draft of this form on November 26, 2020 through SRO 1261(I)/2020 for seeking feedback from stakeholders.
The FBR issued the finalized return form for the small manufacturers for tax year 2020. Interestingly, the date for tax year 2020 has been expired on December 08, 2020 except for the corporate units which have due date for return filing till December 31, 2020.
So far the date for return filing was not further extended beyond December 08, 2020. But it is strong believe that the date may be extended to allow small manufacturers to file return under the newly notified return form.
Tax experts said that the FBR may not allow date extension for small manufacturers without extending the date for all taxpayers who have last return filing date on September 30 and extended up to December 08, 2020.
They said that the FBR had allowed general extension in date for filing tax return at the time of tax amnesty in the past.
The simplified return form of income has been issued for small scale manufacturers having turnover less than Rs50 million. A single page draft wealth statement form is also issued along with the draft return of income.
In the draft return form, the manufacturers would be required to provide limited information about their earnings and expenditures during a year.
The details, as per draft return of income, to be provided by the manufacturers are included: gross sale excluding sales tax and federal excise duty; cost of sales; opening stock; purchases (domestic/imports); closing stock; other direct expenses; gross profit; profit and loss expenses; total income; tax chargeable; tax payable; tax already paid through utility bills; net tax payable/refund etc.
Similarly, the taxpayer shall require to provide details, as per draft wealth statement form, are included: immovable assets; manufacturing unit; moveable assets; business capital; investment/advance; cash in hand/bank; loan/liabilities; net assets; reconciliation of net assets; net assets current year; net assets previous year; increase/decrease in net assets; income as per return; other inflows (gift, loan, remittances, etc.); outflows (gift, loan etc.); and personal expenses.