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ISLAMABAD: The Federal Board of Revenue is considering to make some changes in the income tax return form for the tax year 2013.

A senior FBR official told Dawn on Wednesday that amendments would be made in the form because of changes introduced in the income tax law in the 2013-14 budget.

The official said that all salaried and non-salaried taxpayers would have to file tax returns and wealth statements from tax year 2013 irrespective of the income or value of the assets.

The official said that the filing of wealth statement and wealth reconciliation statement would be made mandatory for all taxpayers.

The law does not exempt any taxpayer — salaried or non-salaried — from filing of tax returns because exemption threshold for filing returns has been done away with.

The official said the exemption threshold of Rs400,000 would be there for individuals only in terms of income tax assessment, but the filing of tax returns was mandatory across the board, whether income tax was deducted or not in a tax year.

Earlier, employers’ statement about deduction of income tax from salary was accepted as tax return for salaried people with income of up to Rs500,000. This relaxation is no more there for low salaried people who also have to file tax returns and wealth statement.

The limit of Rs1 million or more (declared income or assessed for filing of wealth statement) has also been done away with.

As a result, it is now mandatory for all individuals to file a return of income along with wealth statement and wealth reconciliation statement, irrespective of the income threshold.

Everyone under the final tax regime has also been asked to file wealth statement irrespective of the amount of tax paid.

Currently, filing of wealth statement was mandatory only where the amount of tax paid was Rs35,000 or more in the final tax regime.

The provision of revised wealth reconciliation and disclosure of reasons at the time of filing of revised wealth statement was also introduced in the budget.

Only 800,000 people filed tax returns, including employer statements in tax year 2012.

Similarly, the official said that in the business return form the filing of balance sheet would be made mandatory for the business community.

According to the official, the Annex-D introduced last year with income tax return form was postponed till June 30 this year but it has now been made part of the income tax law. He said that implementation on the Annex-D-seeking details of personal expenses of an individual would be enforced from tax year 2014.

In order to bring professionals and business community in the tax net, it has been made mandatory for all people registered with certain bodies to file tax returns irrespective of the type and quantum of their income.

This decision would apply to all chambers of commerce, trade or business associations, market committees, professional bodies, including Pakistan Engineering Council, Pakistan Medical and Dental Council, Pakistan Bar Council or provincial bar councils, Institute of Chartered Accountants of Pakistan or Institute of Cost and Management Accountants of Pakistan.

The limit for the amount of annual bill in case of commercial or industrial electricity connection has been reduced to Rs500,000 from Rs1m for the filing of tax returns. This would help document such businesses in the tax net.

For enforcement of the rules, the government has enhanced powers of income tax commissioners who can ask any person to file a return about income during the current year or last five years without any specific time period.

All taxpayers declaring agricultural income in tax returns will have to provide evidence of tax paid on the income to the provincial revenue department.

Unexplained income or assets will be liable to be included in a person’s income chargeable to tax in the tax year.The FBR will also allow CNIC issued by Nadra in place of National Tax Number (NTN).

Comments (8) Closed

Mohammad Yaqoob Aug 08, 2013 05:27pm

Nothing is going to help unless the culture of corruption, so entrenched in all segments of our society, is taken care of and eradicated. A massive effort in this regard is needed beside the will and, of course, the resources. To have the will under the present political dispensation is next to impossible and the resources to undertake such a herculean task, to be fair, are also not available.

sherali S. Aug 08, 2013 11:33pm

I strongly believe that anyone who also get any money from Goverment. either in Income Support Program or Pension from Govt. also file tax return with wealth statement. If FBR can bring them in the database.

Munir Ahmad Aug 09, 2013 09:49am

All the income tax laws and rules end up squeezing the already tax paying individuals with documented and limited salaries. The businessman with his unlimited and undocumented income gets away by paying very little tax, very well aided by the the corruption of (ex-Islamabad) tax officers. So do the waderahs and landlords who have never been taught to pay any tax. FBR should come out of their cacoon in Islamabad and make a system that uniformly covers every individual, salaried or unsalaried, all over the country. If everyone is made to pay tax, you will not have to put unjustified taxes on people who are already in your tax net (Shakanja).

Fahad Aug 09, 2013 10:18am

@Mohammad Yaqoob: U r right. this is being done only to get loan from IMF.

Talha Aug 09, 2013 07:46pm

@Mohammad Yaqoob: Dear Sir: I urge you to visit any tax office in the country, try to find out how many are financially corrupt and how many are not and surprise yourself. Please do an additional study for greater fun: try to ascertain the poor work performance of surprisingly large non-corrupt tax employees from their monthly performance report and you'll know that corruption is neither the reason for the rot nor criteria for performance; but a byproduct of a complex problem called our tax system currently not on the priority list of the government. We are prone to find simple, moralistic solutions to our complex problems. As an eye opener, I request you to visit www., the joint committee of taxation, ways and means committee and senate finance committee websites and see how the free world behaves in the matters of taxation.

Asim Aug 10, 2013 02:15am

Good idea that is sure to be followed by poor implementation and exploitation.

Statements do not mean anything in Pakistan. Case and point, the jokes that were filed by most of the participants in the general election. Only Imran Khan and Musharraf's statements were any where close to reality.

Accountability starts from the top. If the PM and his family do not pay due taxes he has no moral authority left to ask any one else do so.

illawarrior Aug 10, 2013 08:46am

This will result in a lot more jobs in the tax office

Ahmed Aug 10, 2013 07:11pm

@Mohammad Yaqoob: And how do you propose to change this "culture"? And how does changing the law come in the way of changing the "culture"? Of course you dont have a clue!