IT First Amend Act, 2016: filer, non-filer traders to get tax affairs regularised

The new scheme to be announced for the traders'' community Friday (January 1) would cover both the filers and non-filer traders to get their tax affairs regularised by adopting a special and simplified procedure for assessment of their tax. The proposed Income Tax (First Amendment) Act, 2016 has explained the reasons for launching of the new scheme for traders community.
According to the draft of the Income Tax (First Amendment) Act, 2016 to be announced by the government, a major segment of national economy is undocumented and a large number of traders who are required to file their income tax returns are either persistent non-filers or filers but are underreporting their income and are depriving the national exchequer of its due share.
In view of the prevailing culture of massive non-reporting and under-reporting, it is expedient to provide a one-time opportunity to the filer as well as non-filer traders to regularise their tax affairs by adopting a special and simplified procedure for assessment of their tax. It is also expedient to further amend certain provisions of income tax law through Income Tax (First Amendment) Act, 2016.
As per proposed Income Tax (First Amendment) Act, 2016, a new section "99A (Special provisions relating to traders) has been proposed in the Income Tax Ordinance. - (1) Subject to sub-section (3), tax payable on the profits and gains of a trader as defined in sub-section (4), who up to thirty first day of December, 2015, has not filed a return during any of the ten preceding tax years shall be computed in accordance with the rules laid down in Part I of the Ninth Schedule.
Subject to sub-section (3), tax payable on the profits and gains of any trader as defined in sub-section (4), who is a filer; or is NTN holder and a non-filer but has filed return or returns in any of the last ten preceding tax years shall be computed in accordance with the rules laid down in Part II of the Ninth Schedule.
(3) Sub-section (1) and (2) shall apply, if the return filed by the trader qualifies for acceptance in accordance with the rules laid down in the Ninth Schedule; return relates to tax years 2015 to 2018 and "Income from Business" consists of profits and gains from trading activity only.
For the purpose of this section and the Ninth Schedule, ''trader'' means an individual or an AOP buying goods or merchandise and selling the same without further processing and providing business related after sales services by doing repair jobs. For the removal of doubt any person engaged in rendering of or providing of services as defined in clause (ii) of sub section (7) of section 153; or retailer falling under rule (5) of Chapter II Of Sales Tax Special Procedures Rules, 2007, shall not be treated as a trader, proposed Income Tax (First Amendment) Act, 2016 added.