FBR Unveils Draft Income Tax Return Forms for Tax Year 2024

FBR Unveils Draft Income Tax Return Forms for Tax Year 2024

Islamabad, June 24, 2024 – The Federal Board of Revenue (FBR) issued draft return forms for the tax year 2024 on Monday, ensuring the timely commencement of the return filing season this year.

In a significant move through SRO 895(I)/2024, the FBR introduced electronic income tax return forms for the tax year 2024. The FBR has invited stakeholders to submit any objections or suggestions regarding the draft forms within seven days of their publication.

“Any objection or suggestion which may be received in respect of the said draft forms, before the expiry of the aforesaid period, shall be considered by the FBR,” stated the official notice, emphasizing the open consultation process.

The newly issued draft return forms cater to a diverse range of taxpayers, including companies, Associations of Persons (AOPs), business individuals, and salaried persons. This inclusive approach aims to streamline the tax filing process for all categories of taxpayers, ensuring that each group’s unique requirements are met.

For the tax year 2024, the deadline for filing income tax returns is set for September 30, 2024, for salaried persons, business individuals, AOPs, and companies operating on a special tax year. However, companies that follow a normal tax year have until December 31, 2024, to file their returns.

The FBR has announced that the income tax return filing process will commence on July 1, 2024, providing taxpayers with a three-month window to complete and submit their returns by the September 30 deadline. This proactive measure is part of the FBR’s broader strategy to facilitate timely return filing, thereby helping taxpayers avoid the complications associated with new legal provisions introduced through the Finance Bill, 2024.

Filing income tax returns by the deadline has become increasingly critical following the introduction of stringent penalties for late filers. Under the new regulations, late filers will incur higher withholding tax rates on transactions compared to those who file their returns on time. Nevertheless, the tax rates for late filers will still be lower than those for non-filers, provided they appear on the Active Taxpayers List (ATL).

This regulatory shift underscores the FBR’s commitment to enhancing tax compliance and broadening the tax base. By penalizing late filers with higher tax rates, the FBR aims to encourage timely filing and improve overall tax collection efficiency.

As stakeholders review the draft forms, their feedback will be crucial in refining the final versions. The FBR’s collaborative approach signifies a step towards more efficient and taxpayer-friendly practices, aiming to simplify the tax return process and ensure compliance across the board.