ISLAMABAD: The Federal Board of Revenue (FBR) has notified a simplified income tax return form for small retailers and shopkeepers having an annual turnover of less than Rs10 million.

The FBR has issued SRO 1955(1)/2022 here on Monday to amend the Income Tax Rules, 2002.

Earlier, the draft of the form was issued through SRO1892(I)/2022 on October 13, 2022, seeking comments of the stakeholders.

President of the association Muhammad Kashif Chaudhry told Business Recorder that if this FBR return form notified through SRO 1955(1)/2022 is issued for small traders, it is out rightly rejected.

First, the form should have been in Urdu language.

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Second, it should be simple in Urdu. The form issued under the SRO 1955(1)/2022 is in English language and therefore, it is not acceptable, he added.

He added that the scheme which has been restored under the recently-promulgated Presidential Ordinance was not acceptable to the traders’ community. The association had shared the detailed plan of a simple fixed scheme with the FBR. The fixed tax scheme should be practical for small traders and shopkeepers across the country.

Under the SRO 1955(1)/2022, the new return form would be applicable for the tax year, 2022. According to the simple return form, the traders/retailers have to declare basic information such as business turnover/receipts; electricity bills, cost of sales; opening stocks; purchases; other expenses; closing stocks; gross profits; profit and loss expenses and other information.

Under the notification, the FBR has also prescribed a return form for the individuals and the association of persons (AoPs) having turnover up to Rs50 million.

Copyright Business Recorder, 2022

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