ISLAMABAD: After repeated promises of simple form, the Federal Board of Revenue (FBR) has finally issued a comprehensive income tax return form for traders for tax year 2025.
The return form for the traders comprises five pages containing detailed information about business activities as well as personal expenditures. However, traders questioned about the status of Urdu version of return as promised by the FBR.
Moreover, traders would be required to hire tax experts or consultants for filing of returns as the same cannot be filled by the traders themselves, according to traders. Traders’ representatives told Business Recorder at the FBR House that the return form is electronic and contain many pages. The detailed information has been sought about the business/turnover receipts, which is cumbersome process.
Return filing: Taxpayers to receive phone calls
Traders have to provide information about the cost of sales, gross profit, tax already paid, net profit, taxable income and other data in the new income tax return form.
The details of the total value of capital assets have to be provided by the traders community. Total value of capital assets under section 7E of the Income Tax Ordinance has to be provided by the traders.
The FBR has issued a separate page of personal expenses for the traders’ community.
Last year, in case of filer traders, the tax under sections 236G and 236H was reduced to 0.1 percent and 0.5 percent, respectively. This tax as well as monthly advance tax would be adjustable.
Under the previous return, trader would mention the bank account number in their return form for automatic payment of refund amount. The simple return form had automatically calculated tax liability of traders based on their declared income.
Till last year September 2024, the FBR had registered over 58,000 small traders/new shopkeepers under the Tajir Dost Scheme against the target of 3.2 million. Board had projected total collection Rs 50 billion under this head in 2024-25, which was an ambitious target.
Copyright Business Recorder, 2025
Comments
Comments are closed for this article.