The Federal Board of Revenue (FBR) has finally opened its portal for the filing of the much-anticipated “simplified” salaried tax return form. However, contrary to the claims of simplification, including remarks from the Finance Minister (FM), initial user experiences suggest the new form is anything but straightforward, posing significant challenges for individual taxpayers.
For those who filed their 2024 tax return as salaried individuals, filing under this new simplified form is no longer optional; it is now mandatory. This shift is forcing many taxpayers who previously managed their own filings to consider seeking professional assistance.
A Barrage of Errors and Operational Difficulties
Tax practitioners and individuals attempting to navigate the new form are reporting number of issues that complicate the filing process:
- Numerous Errors and Difficulties: Users are encountering various system errors and logical difficulties within the form, hindering seamless data entry and submission.
- No Copy-Paste Functionality: The absence of a copy-paste feature. All figures, regardless of their source, must be manually punched into the system, significantly increasing data entry time and the potential for manual errors.
- Employer NTN Requirement: While the form prompts for the employer’s National Tax Number (NTN), which is not always readily available to all employees, thankfully, this field is not compulsory, and entering the employer’s name suffices.
- Mandatory IBAN Entry for All Bank Accounts: The form now requires taxpayers to manually input the International Bank Account Number (IBAN) for every single bank account. This redundant requirement adds unnecessary steps for users. That signifies the FBR data access of Banking information.
- Disconnected Data Flow to Wealth Statement: Perhaps the most perplexing issue reported is the lack of auto-population. Even after entering salary details in the relevant income sections, this information is not automatically picked up and reflected in the wealth statement, while there is no option to manually enter the information in the wealth section, it fetches partial information..
- Rigid Step-Wise Progression: The new return form operates on a strict step-wise progression. Users cannot advance to the next step without completing the current one. A major frustration arises from the inability to revisit previous steps. If a mistake is discovered or an amendment is needed in an earlier step (e.g., Step 2) while a taxpayer is at a later stage (e.g., Step 6), the user is forced to re-do all subsequent steps again, leading to immense time wastage and frustration.
Advice to Taxpayers: Wait for FBR Updates and Error Resolution
Given the widespread issues and operational difficulties reported with the current “simplified” salaried tax return form, taxpayers are strongly urged to refrain from filing their returns immediately.
It is advisable to wait for the Federal Board of Revenue (FBR) to acknowledge and rectify these errors. Filing now could lead to significant frustration, potential inaccuracies, and the need for re-filing later, consuming valuable time and resources. Taxpayers should monitor FBR announcements for updates regarding the resolution of these technical glitches and improvements to the form’s functionality.
The introduction of these “simplified” changes appears to have inadvertently created a more complex and error-prone environment for salaried taxpayers. The FBR is yet to issue a comprehensive clarification or address the widespread difficulties reported by users, leaving many to wonder if the new system truly serves its intended purpose of simplification. Taxpayers are advised to proceed with caution and allocate ample time for filing, given the current challenges.
