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21 points in new tax return form clarified

ISLAMABAD (September 13 2004): To remove confusion in filing income tax returns for tax year 2004 by taxpayers, the Central Board of Revenue (CBR) has clarified 21 points in the new simplified version of income tax return form.

In this regard, the CBR issued instructions to all Regional Commissioners of Income Tax (RCITs) here on Sunday.

The CBR has asked the RCITs that these clarifications should be followed in letter and spirit to make the exercise fruitful.

In certain cases, the tax officials working in the field formations were themselves not clear about the meaning of certain columns of these income tax forms.

Besides, business community had also raised a number of queries seeking clarifications.

The clarifications explain different columns of forms of corporate return of income, non-salaried individuals and associations of persons return of income, employer's certificate in lieu of return of income, attachment to employer's certificate, statement of final taxation and statement of retailers and annexes attached with the forms.

THE CBR HAS ISSUED THE FOLLOWING CLARIFICATIONS IN THIS REGARD:

1. EMPLOYER'S CERTIFICATE IN LIEU OF RETURN OF INCOME:

(a) At serial 16, the word 'Return' means 'Employer's Certificate', being a substitute of Returns of Total income under section 115.

(b) At serial 16, the amount of tax paid under section 137 is to be filled and paid by the employee, if any. However, this does not mean that the employer is absolved of its liability for any short deduction of tax from the employee.

(c) At serials 15 and 16, the amount of tax due and paid under section 137 need not be filled where the employee is filling the 'Attachment to the employer's certificate in lieu of return of income'.

2. ATTACHMENT TO THE EMPLOYER'S CERTIFICATE IN LIEU OF RETURN OF INCOME:

(a) At serial 1, the amount to be stated is the amount of chargeable salary as certified by the employer(s) at serial 12 of the Employer's certificate in lieu of return of income.

(b) At serials 18 and 19, the word 'Return' means 'Attachment to the Employer's Certificate', being a substitute of 'Return of Total Income' for salaried individuals.

3. ANNEX X – TAX ALREADY PAID INCLUDING ADJUSTMENTS: Wherever necessary, after line 6, a new line may be added as under:-

'6A. From salary 9405'.

(a) This insertion can be made manually on the forms already available.

The RCITs should ensure that the clarifications must be kept in view during interaction with the taxpayers, the CBR said.

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