ISLAMABAD (July 31 2010): The Federal Board of Revenue is expected to issue new income tax return forms for the tax year 2010 next week. It is learnt here on Friday that the FBR is drafting a new income tax return form for the Tax Year 2010 which would be issued in coming days. The new return form would be filed by different categories of taxpayers such as Association of Persons (AOPs), individuals and those operating in Presumptive Tax Regime (PTR).

Experts and tax practitioners have expressed serious concern over delay in the issuance of new income tax return form for the tax year 2010. The month of July has ended, but the FBR has so far not issued the new return form. If the FBR issues return form in the first week of August, the concerned taxpayers would only have few weeks to understand the new form to be submitted in September 2010. The FBR has to give at least 15 days to the taxpayers to submit comments on the draft of the new form. In this case, tax department would give only few weeks to the taxpayers, who would file return in August-September.

They added every year issuance of new return form has been considerably delayed by the FBR, which creates practical problems for the return filers. The FBR wanted to encourage voluntary compliance to increase the number of return filers. However, delay in issuance of return form would only discourage taxpayers to voluntarily file return forms. The timely issuance of return form would help the taxpayers to better understand the columns of new form.

They suggested that effective co-ordination between FBR Wings could facilitate early filing of return form. However, experts raised a question whether it is justified to give only few weeks to the new return filers to understand the return form? The FBR should also issue the draft of the new return form for comments of the stakeholders, experts added.

Copyright Business Recorder, 2010