07/12/2023
FBR Issues Record Keeping Requirements for Business Income up to Rs 500,000
December 6, 2023
Karachi, December 6, 2023 – The Federal Board of Revenue (FBR) in Pakistan has notified updated record-keeping requirements for businesses with an annual turnover of up to Rs 500,000.
The new guidelines were unveiled through an amendment to the Income Tax Rules, 2002, applicable for the tax year 2024.
According to Rule 30 of the Income Tax Rules, 2002, the FBR outlined specific record-keeping requirements for different categories of taxpayers falling under the “Income from business” category. These regulations are designed to ensure that businesses maintain accurate and comprehensive financial records.
For Taxpayers with Business Income up to Rs. 500,000 and New Taxpayers:
1. Serially numbered and dated cash memos, invoices, or receipts for each transaction of sale or receipt, including details such as the taxpayer’s name, business name, address, national tax number or CNIC, and sales tax registration number (if applicable).
2. Daily record of receipts, sales, payments, purchases, and expenses, with a single entry for each category on a daily basis.
3. Vouchers of purchases and expenses.
It’s worth noting that for transactions not exceeding Rs. 100, taxpayers have the flexibility to maintain one or more cash memos per day.
For Taxpayers with Business Income Exceeding Rs. 500,000 and Specific Business Categories (Wholesalers, Distributors, Dealers, and Commission Agents):
1. Similar requirements as for taxpayers with income up to Rs. 500,000, with additional details for transactions exceeding Rs. 10,000, including the name and address of the customer.
2. Cash book and/or bank book or a daily record of receipts, sales, payments, purchases, and expenses.
3. General ledger or an annual summary of financial activities under distinctive heads.
https://pkrevenue.com/fbr-issues-record-keeping-requirements-for-business-income-up-to-rs-500000/?fbclid=IwAR0qgOPflceiMSKJ7NmjS3OsoJQXyTHYGsjymqoEnOp9p4qpYZ3y1NJCl20
FBR in Pakistan has notified updated record-keeping requirements for businesses with an annual turnover of up to Rs 500,000.
