FBR issues draft income tax return form for individuals

The Federal Board of Revenue (FBR) has issued draft income tax return form for individuals, deriving income under any head other than salary/ business for tax year 2021.

The FBR has issued the draft return form through an SRO1022(I)/2021 to amend the Income Tax Rules 2002. Such form for individuals issued, who are deriving income under any head other than salary / business for tax year 2021.

The FBR has also issued the draft of the wealth statement required to be filed under Section 116 of the Income Tax Ordinance 2001. The Individual Paper Return for Tax Year 2021 is the return of total income under the Income Tax Ordinance, 2001.

Annexures of Draft Income Tax Return Form

The Annex-A of the manual return deals with the adjustable tax collected/ deducted. Such heads of adjustable taxes are part of the computation of taxable income and tax payable thereon.

The Annex-B is related to the manufacturing / trading / profit and loss account (including revenues subject to Final / Fixed Tax). Such includes different heads of revenues, manufacturing expenses, direct and indirect expenses, income under the head final tax regime etc.,

The Annex-C relates to the inadmissible / admissible deductions. Such relates to the add back of expenditures incurred which are not admissible under the Income Tax Ordinance, 2001. Admissible deductions are reduced from taxable income as expenses allowed under the Income Tax Ordinance, 2001.

The Annex-D of the manual income tax return form is also related to the depreciation, initial allowance and amortization. Schedule of Depreciation, initial allowance and amortization with written down values, and charge for the year.

The Annexure-E relates to the ‘Minimum Income Tax chargeable’ which is a part of computation of taxable income and tax payable thereon. It contains Different heads of receipts and tax payable / deducted under minimum tax regime.

The Annexure-F relates to the detail of ‘Personal Expenses’ Incurred during the year. List of heads of income are given there for declaration. These are non business expenses.

The next Annexure named ‘Wealth Statement Under Section 116 of the Income Tax Ordinance, 2001′ is given in the form. where different types of heads of assets are mentioned which relates to the personal assets of the taxpayer. Such heads of assets include ‘Agriculture Property’, ‘Residential Property’, ‘Commercial Property, ‘Bank Accounts’, ‘Investments’,, ‘Liabilities’ etc.,

Draft income tax return form for individuals, deriving income under any head other than salary/ business for tax year 2021

Forms of Income Tax Returns for Tax Year 2021 for Individuals deriving Income under any head other than salary / business

Return of Income (IT Form)

Income from Final Tax Regime

Annexure A – Adjustable Tax collected / Deducted

Annexure B – Manufacturing / Trading / Profit & Loss Account ( including Revenues subject to Final! Fixed Tax)

Annexure C – Inadmissible / Admissible Deductions

The Annexure D – Depreciation, Initial Allowance, amortization

Annexure E – Minimum Tax chargeable

Annexure F – Personal Expenses

Wealth statement under section 116 of Income Tax Ordinance 2001

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