Tajir Dost Scheme: Special Procedure for Small Traders and Shopkeepers

Government of Pakistan Revenue Division Federal Board of Revenue **,k** NOTIFICATION Islamabad, the 30th March,2024. exercise of the powers conferred by section 99B of S.R.O. 457(I) 12024. - In the Income Tax Ordinance,200l (XLIX of 2001), read with sub-section (1) of section 237 thereof the Federal Board of Revenue with the approval of the Minister- in-charge is pleased to prescribe special procedure tbr small traders and shopkeepers the same having been previously published vde Notification S.R.O. No. 420(l)12024, dated the 2l'' day of March, 2024, as required by sub-section (3) of section 237 of the said Ordinance, namely: - I "Part - Preliminary This instrument shall be called the l. Title and commencement. - (l) Tajir Dost (Special) Procedure, 2024. 2024 except (2) It shall come into force on and from the l't day of April, Part-lll thereof which shall come into force on and from the l't day of lluJ.y,2024. special procedure shall apply to the traders and 2. Scope. - (1) This shopkeepers operating through a fixed place ofbusiness including a shop, store, business warehouse, office or similar physical place (hereinafter referred to premises) located within the territorial civil limits including cantonments in the cities as specified in the Schedule hereto for registration and payment of minimum advance tax. a person: - (2) Sub-paragraph (1) shall not apply to (a) being a company; or

(b) operating as a unit of national or intemational chain stores in more than one city; or (c) a class ofpersons specifically excluded by the Board. prejudice to the 3. Provisions of the Ordinance to apply. - Without provisions of this special procedure, all provisions of the Ordinance shall apply to the persons specified under this special procedure in respect of- (a) computation of income for a tax year and tax payable thereon; (b) collection and deduction oftax as provided in the Ordinance; (c) computation and payment of advance tax liability under section 147 of the Ordinance; (d) sections 4C andTE ofthe Ordinance ifliabletopay suchtax; and schedules (e) chapters IX, X, XI, XII, XIII of the Ordinance and the thereto, ifnot specified in clauses (a), (b), (c) and (d). Part-II [Registrationl April, 2024] [with effect from l't 4. Registration in the National Business Registry flajir Dost)' - (1) Every trader and shopkeeper shall apply for registration under section 181 ofthe Ordinance or through Tax Asaan App or on FBR's portal or through FBR's Tax Facilitation Centers by the 30th day of Aprll,2024. (2) Ifa person, who is required to be registered under sub-paragraph (l), does not apply for the registration under sub-paragraph, the Commissioner Inland Revenue shall register the trader or the shopkeeper as the case may be. the Ordinance shall mutatis mutandis (3) The provisions of section 182 of subapply to the trader or shopkeeper who has not applied for registration under paragraph (l).

Part-III [Payment of Advance Tax] [with effect from l't July,2024) payable by a person. (1) Every 5. Minimum monthly advance tax - person shall be liable to pay monthly advance tax in accordance with this paragraph. (2) The advance tax paid under sub paragraph (1) shall be the minimum tax in respect of income from the business covered under this special procedure. (3) The amount of monthly advance tax for a tax year shall be computed in the manner as may be prescribed. (3) is zero, the (4) Where the advance tax computed under sub paragraph advance tax payable under sub-paragraph (l) shall be one thousand two hundred Rupees per annum: Provided that where the income of the person is exempt from income tax under any provision ofthe Ordinance, sub-paragraph (1) shall not apply: Provided further that the advance tax payable shall be reduced by twenty-five percent ofthe whole or the balance - as the case may (a) if the person pays in lump sum the whole or the balance, be, of remaining advance tax for the relevant Tax Year on or before any of the due dates for payment of such tax under the said paragraph; or retum (b) if the person who has not filed income tax retum, hles income tax for Tax Year 2023 before the due date for payment of first monthly installment. (1) The monthly 6. Mode and manner of payment of advance tax. - advance tax payable under paragraph 5 shall be paid with effect from the l'1 day oi Lu|y,2024 for the relevant tax year and the first payment shall be due on the 15th day of July, 2024 andthereafter on the 15th day of every month. (2) The tax payable under paragraph 5 for a taxyear shall be paid through

a separate Computerized Payment Receipt against the Payment Slip ID (PSID) generated by Tajir Dost module or through FBR's portal or through FBR's Tax Facilitation Centers. Charge may amend the 7. The Board with the approval of Minister in special procedure from time to time so as to add, alter, omit or modiff any provision therein. 8. Definitions. (1) In this special procedure, unless there is anything - repugnant in the subject or context. - (a) "annual rental value" means ten percent ofthe fair market value of the business premises; (b) "business premises" include all business places, store, warehouse, or any other place connected to business or an office or a home operating as a business place; (c) "indicative income" means amount calculated on the basis of the annual rental value in accordance with the formula as may be prescribed; (d) "fair market value of business premises" means the amount calculated as per the valuation of immoveable properties notified by the Board under section 68 of the Ordinance, or where such valuation has not been notified by the Board, the values fixed by the District Officer (Revenue),, or Provincial or any other authority authorized to fix such values for the purposes of stamp duty; (.) "National Business Registry" means a central repository database of traders and shopkeepers which is accessed through Tajir Dost module of and Tax Asaan App, FBR's portal for the purpose of registration payment of advance tax under this special procedure; (0 "Ordinance" means the Income Tax Ordinance 2001, (XLIX of 2001); (e) "person" means traders and shopkeepers falling under the scope of this special procedure.

(h) "shopkeeper" includes wholesaler, dealer, retailer, manufacturer-cum- retailer, impofter-cum-retailer, or such person who combines the activity of retail and wholesale with any other business activity or other person in the supply chain ofgoods. (2) All other terms and expressions used but not defined in this special procedure shall have the same meanings as assigned thereto under the Ordinance. THE SCHEDULE [See paragraph 2] S. No. Description (l) (z) 1 Karachi 2. Lahore J Islamabad 4 Rawalpindi 5 Quetta 6 Peshawar lF.No.1(16)R&S/20231 (Naveed ukhtar) Secretary (IR Policy)