Non-availability of updated forms creates confusion

Individual taxpayers are in confusion over submission of returns in the current assessment year as the relevant forms are yet to be updated in accordance with the new Income Tax Act-2023 (ITA-2023) that came into effect from June 22 last.
The existing return forms designed as per the Income Tax Ordinance-1984 have remained unchanged.
The time for submission of income tax returns by individuals for this assessment year started on July 1 last and will continue until November 30 next.

Although the National Board of Revenue (NBR) is now accepting the existing return forms, the taxpayers and tax experts are in a dilemma as some fiscal measures on computation of taxes and expenditures changed under the new law.
Nahida Sultana, a school teacher in the city's Dilu Road area, needed the proof of submission of tax return (PSR) for opening a fixed deposit receipt (FDR) account, but was in confusion whether the bank would accept the existing form.
"I am confused as no instruction came from the tax authority," she said, adding that the online return submission system is not generating a PSR automatically.
Tax practitioners said the submission of returns under the new law in old forms may result in unintentional mistakes by taxpayers which may be subject to auditing in future.
Talking to the FE, a senior tax official said they were working on preparing the new return forms that would take one more month to complete.
Until issuance of the new forms, the taxmen would accept existing forms as clearly mentioned in the new law, he said.
After issuance of the new forms, validity of the existing forms would expire and then the taxmen would not accept the returns with the previous forms, he added.
Most of the tax returns are submitted in the month of November as the taxpayers wait for the last moment every year.
However, many of the taxpayers are compelled to submit tax returns as the PSR has been made mandatory for 44 types of services.
Tapas Aditta, income tax lawyer certified by the NBR, said the issue needs to be addressed immediately before arising further complexities.
"The taxpayers have faced a similar situation after the introduction of the new VAT law. People who had submitted VAT returns at that time faced audits for their unintentional mistakes," he said.
He added that the taxpayers are facing complexities while availing different services as the PSR is mandatory.
The lawyers expressed the fear that submission of tax returns under the new law in the forms framed under the previous ordinance may result in mistakes in furnishing income and other financial details due to changes in the fiscal measures.
Tax expert Jahangir Alam said the taxpayers are confused as the income tax authorities are yet to issue rules to implement the new law.
It is a brave step of the NBR to implement the new law, but questions could be raised about preparations of the taxmen, tax lawyers and taxpayers to adapt to the major changes, he added.
He said the government officials are confused over the continuation of the tax benefits in the new law they have been enjoying so far.
The NBR scrapped the ITO-1984, but kept some of the forms and rules valid until issuance of the new ones, he pointed out.
The NBR may have to either issue a set of instructions for the taxpayers on return submission forms or expedite issuance of new forms, tax experts said.
However, the tax officials said that a committee has been formed to prepare the return forms carefully so that no confusion arises in future.
They said the existing taxpayers would be able to avail the services with their last fiscal year's PSR until November 30, 2023.
Only the new taxpayers who would require PSR this year may face problems until issuance of new return forms, they added.
Mr Alam said the online return submission system is not working now and the taxpayers are not being able to submit online returns to get PSR.
He said the NBR should impart training on the new law to help the taxpayers and lawyers understand it easily.
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