Moreover, they said that VTCS would be applicable for four tax years, starting from FY15 to FY 18 and the non-filers, who would avail this scheme, would not be selected for both audits - computerised random ballot or manual. Sources said that VTCS beneficiaries would also be exempted from filing wealth statements along with returns as FBR was going to introduce simple single-page return form to facilitate the traders.
COMPUTATION PROCEDURE The Voluntary Tax Compliance Scheme has proposed a detailed procedure for computation of the tax payable on profits and gains of such traders falling under the scheme. According to the draft of the Income Tax (First Amendment) Act 2016, to be presented before the National Assembly on Friday, the tax payable on profits and gains of a trader falling under sub-section (2) of section 99A in respect of trading activities chargeable under the head "Income from Business" shall be computed in the manner hereinafter provided.
For tax year 2015, the tax payable on profits and gains of a trader qualifying under this Part shall be higher of the following: a) 25 percent higher tax than paid for tax year 2014 or for the latest tax year for which return has been filed on the basis of taxable income; b) tax on turnover at the rates specified in rule (4); or c) Rs 30,000.
For tax years 2016 to 2018, the tax payable on profits and gains of a trader qualifying under this Part shall be higher of the following: a) 25 percent higher tax on the basis of taxable income than tax paid for tax year 2015; or b) tax on turnover at the rates specified in rule (4).
Trader qualifying under this Part, who has filed return for tax year 2015 before the due date of filing of return under this Schedule, may file a revised return subject to the condition that the tax paid is higher of the following: a) tax as per rule (7) on the basis of revised return; or b) 10 percent higher tax than the tax paid as per original return.
For tax year 2015, the provisions of section 114(6)(ba) shall not apply to a trader who has revised the return under rule (9) before the due date of filing of return under this Schedule. Where the computable income as defined in clause (28A) of section 2 of the Ordinance in relation to tax on turnover at the rates specified in rule (4) is higher than the taxable income declared, the trader qualifying under this Part may opt to take the credit for the purpose of section 111, of the difference between the said imputable income and taxable income, provided that tax at the rate of one per cent of the difference is paid along with the return, draft of the Income Tax (First Amendment) Act, 2016 added.