FBR Introduces Simplified Tax Return Form for Traders for the 2024 Tax Year

In a significant move to make tax compliance more accessible for traders, the Federal Board of Revenue (FBR) has launched a simplified return form for the tax year 2024. This initiative is specifically targeted at traders who were non-filers in the previous tax year, 2023. The new electronic return form aims to streamline the process of becoming a filer, encouraging more traders to embrace tax compliance and enjoy the associated benefits.

A Simplified Approach to Tax Filing

The introduction of this simplified return form marks a pivotal step in enhancing tax compliance within the trading community. Naeem Mir, the Chief Coordinator of the Tajir Dost Scheme, announced that the new form provides traders with a straightforward path to transition from non-filers to filers. By doing so, traders not only fulfill their tax obligations but also gain access to reduced tax rates and other advantages associated with registered taxpayers.

Benefits of Becoming a Filer

One of the most compelling incentives for traders to become filers is the significant reduction in tax rates. The FBR has announced that traders who register as filers will see their tax under sections 236G and 236H reduced to 0.1% and 0.5%, respectively. This reduction offers substantial financial relief to traders, making compliance more attractive. Additionally, these taxes, along with any monthly advance tax payments, are adjustable, providing further flexibility and convenience.

Automated Refunds and Simplified Calculations

The simplified return form is designed to streamline the tax filing process in several ways. Traders can now input their bank account numbers directly into the return form, enabling automatic payment of any refund amounts. This automation eliminates delays and reduces the administrative burden on both traders and the FBR. Furthermore, the form is equipped to automatically calculate the tax liability based on the trader’s declared income. This user-friendly approach minimizes the likelihood of errors and ensures accurate tax reporting.

Key Features of the Simplified Return Form

• Electronic Filing: The new form is available electronically, making it accessible and convenient for traders to fill out and submit.
• Automatic Tax Calculations: The form’s built-in functionality to automatically compute tax liability based on declared income simplifies the process and ensures accuracy.
• Refund Processing: By allowing traders to provide their bank account information directly in the form, the FBR facilitates faster and more efficient processing of tax refunds.
• Reduced Tax Rates: Filers benefit from lower tax rates under sections 236G and 236H, making it financially beneficial for traders to comply with tax regulations.

The Tajir Dost Scheme: Supporting Traders

The introduction of this simplified return form is part of the broader Tajir Dost Scheme, which is designed to support and facilitate the trader community in fulfilling their tax obligations. The Chief Coordinator of the Tajir Dost Scheme, Naeem Mir, emphasized the scheme’s commitment to providing practical solutions that make it easier for traders to comply with tax laws. By offering a simplified return form and reduced tax rates, the scheme aims to bring more traders into the tax net, thereby increasing the overall tax base and contributing to the country’s economic stability.

Filing Requirements and Compliance

Traders who were non-filers in the previous tax year are encouraged to utilize this simplified return form to ensure compliance. The FBR’s initiative highlights the importance of becoming a filer, not only to benefit from reduced tax rates but also to contribute to the country’s economic development. Filing taxes is a civic duty that supports public services and infrastructure development, benefiting the community at large.

How to File Using the Simplified Return Form

1. Access the Form: The simplified return form is available electronically through the FBR’s official portal. Traders can log in using their credentials to access the form.
2. Fill in Personal and Financial Information: Traders need to provide their personal details, income information, and bank account number for refund purposes.
3. Review Automatic Tax Calculations: The form will automatically calculate the tax liability based on the declared income, providing traders with a clear understanding of their tax obligations.
4. Submit the Form: Once all the necessary information has been filled out, traders can submit the form electronically. The FBR system will process the submission, and any refunds due will be credited directly to the trader’s bank account.

The Federal Board of Revenue’s introduction of a simplified return form for traders in tax year 2024 is a commendable effort to increase tax compliance and bring more traders into the formal economy. By offering reduced tax rates, automated refund processing, and user-friendly filing options, the FBR is making it easier for traders to meet their tax obligations. This initiative not only benefits traders through financial relief and convenience but also contributes to the broader goal of economic stability and development in Pakistan. As more traders take advantage of these simplified filing options, the FBR’s efforts will play a crucial role in enhancing the tax base and supporting public welfare programs.