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Fulfilling a major demand of taxpayers, the Federal Board of Revenue on Wednesday decided not to ask for break-up of other personal and household expenses in the form of repair/maintenance of residence, driver/servants, food, clothing, medical, marriages and functions.
Sources told Business Recorder that the decision has been taken in the Chief Commissioners conference held at the FBR House under the chairmanship of FBR Chairman Salman Siddiq to collect only necessary information of the personal expenditure of the individuals. Thus, business persons/directors of companies, members of the Association of Persons (AOPs) and salaried persons would not be required to give break-up of other personal and household expenses.
According to the decision of the conference, now, the taxpayers will be able to provide a lump sum figure as "personal and household expense" at serial number-9 of Annex-D (Details of Personal Expenses for Individual) of the income tax return form for Tax Year 2011.
Previously, it was mandatory for the taxpayers falling within the category of individuals to give details of other personal and household expenses including repair/maintenance of residence, driver/servants, food, clothing, medical, marriages and functions. The FBR has received presentations to abolish the additional information about the other personal and household expenses. It is difficult for the taxpayers to workout complete details about the additional personal and household expenses. Keeping in view the difficulties of the taxpayers, the FBR has decided to amend the income tax return form for individuals relaxing conditions of the Annex-D of the income tax return form for individuals.
Sources said that the taxpayers would only provide details of personal expenditure of residence electricity bills, residence telephone/mobile/internet bills, residence gas bills, residence rent/ground rent/property tax/fire insurance/security services/water bills, education of children/spouse/self, travelling (foreign and local), motor vehicle in use (whether owned or not) running and maintenance including lease rentals and insurance, Club membership fees/bills, total personal expenses and number of family members/dependents.

Copyright Business Recorder, 2011

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