ISLAMABAD: To facilitate small manufacturers, the Federal Board of Revenue (FBR) has issued a new income tax return form and wealth statement for manufacturers (individuals and association of persons) having annual turnover of less than Rs50 million for tax year 2020.

Through an SRO 1261(I)/2020 issued by the FBR here on Thursday, the FBR has notified the draft of the income tax return form for the individuals and Association of Persons (AOPs) falling within the category of manufacturers having annual turnover of less than Rs50 million.

The FBR has divided the form into two parts, i.e. Form-A (new income tax return form) and Form-B (wealth statement).

The income tax return form has sought information of gross sales excluding ST/FE, cost of sales, opening stock, purchases (domestic/imports), closing stock, other direct expenses, gross profit, profit and loss expenses. Total income covers information of inadmissible tax deductions, admissible tax deductions, deductible Allowance Net Profit/taxable income, tax chargeable, tax credit, tax payable, whichever is higher, electricity, telephone, and net tax payable/refundable.

Under the new wealth statement, the FBR has asked the small manufacturers to provide details of immovable assets, manufacturing unit, moveable assets, business capital, investment/advance, cash in hand/bank, investment/advance, loan/liabilities and net assets.

The reconciliation of net assets would also be done with the help of information of net assets current year, net assets previous year, increase/decrease in assets, income as per return, other inflows (gift, loan, remittance etc), outflows (gift, loan etc), and personal expenses.

Copyright Business Recorder, 2020