FBR effects major changes in income tax return form

[Lahore_Real_Estate]

ISLAMABAD (September 04 2010): Taking into account recommendations received from various tax lawyers and consultants, the Federal Board of Revenue has introduced some major changes in the income tax return form for Association of Persons (AOPs) and individuals for the Tax Year 2010. Under the amended return form, some categories of distributors engaged in the business of cigarette and pharmaceutical products have to specify the receipts/values and tax chargeable etc as per Finance Act 2010.

Sources told Business Recorder here on Friday that the amended return of total income/statement of final taxation for Tax year 2010 has been placed on the FBR website as well as changes has been incorporated in the FBR e-filing system. The FBR has introduced changes in the return for AOPs/individuals in view of recommendations made by the tax bar associations and tax experts/lawyers.

The changes have been made in the return of total income/statement of final taxation in line with the provisions of the Finance Act 2010. Under the amended form, services and imports, falling into final taxation regime, those have now been shifted to minimum tax liability on main page of the return. In order to cover the transactions taken place prior to July 1, 2009 for the taxpayers falling under special tax year, the FBR has kept the provision of mentioning those receipts under final taxation regime.

A new provision has been made available in the return form to mention the receipts of distributors of cigarette and pharmaceutical products. The distributors would be able to mention the tax withheld under the new income tax return form.

Another major change in the new return form is the provision to specify the sale by auction u/s 236A. In this regard, a provision has been made to mention the tax withheld at the time of sale by auction u/s 236A of the Ordinance 2001. Some of the sections of the Income Tax Ordinance, which were mentioned in the final taxation regime, have now been included in the minimum taxation. The sections are 113, 148(8), 153(1)(b), 233A(2) and section 235(4) of the Income Tax Ordinance 2001. The amended return form has also made changes relating to minimum taxation liability for imports and services, sources added.