950809

CBR explains

rationale of

new IT forms

ISLAMABAD: A Spokesman of the CBR here on Wednesday dispelled the impression being created by some persons among business community regarding details of personal expenses to be mentioned in the new income tax return form.

The spokesman clarified that the new forms are an improved and updated version of the old forms, which were introduced many years back. The form has been modified because of changes in the law over the years and computerization of tax administration.

Explaining the background of new income tax return forms he asserted that the criticism against the forms is unjustified. The main objection being raised is that taxpayers were being asked to give details of a large number of personal expenses and that the forms are lengthy and complicated. The truth of the matter is that new forms require reporting of only six items of expenditure. However, the Prime Minister has directed CBR to request taxpayers to indicate only three types of personal expenses i.e. expenditure on mobile phones, expenses on education if children are studying in costly schools and expenditure on foreign travels.

The new form appears lengthy because it incorporates some information which was already being furnished by taxpayers along with the old forms as loose documents. This step would redress taxpayers grievances about loss of documents during routine handling.

Lastly, the income-tax officers have been directed to hold meetings in market places to explain salient features of the broad-based Self-Assessment Scheme and different items in the new income tax return form so that the taxpayers do not face any difficulty in understanding the broad-based Self-Assessment Scheme and in filling the forms.-APP