What is Income Tax?
- Tax is an involuntary fee imposed on an individual or a corporation by the federal government. It can be local, regional, or even national. Income tax is a highly consistent form of taxation. According to the prevailing law, all Persons must file income tax every year, which comes under the liable Persons for filing Income Tax returns.
- The government collects Income Tax for the utilization of this fund on those works, which are the most important at that time. Tax Care is one of the best income tax consultants in Lahore, assisting the clients with matters on taxation. Income tax helps out to reduce the economic disparity of any country. Tax rates and calculation techniques to calculate taxable income are always different as per the financial status of the Taxpayer.
Taxpayers are of several types; some of them are as follows:
- Association of Persons
- Salaried individuals
- Non – Salaried Individuals
For an individual, Filing an income tax return in Pakistan is a tiresome and unexciting process for an individual who wished to file its Tax Return. Preparing Tax Return involves lengthy and tricky methods to calculate taxes and writings, for which people spent too much time on the solution. It usually becomes an annoying experience for the person who works on it. The reasons behind Things that used in these calculations are generally not aware of the general public. Further, there is always a deadline for filing Tax Returns for which the process becomes more uncomfortable. The details on income tax return filing in Pakistan issued by the Federal Board of Revenue, Pakistan.
Who Needs To File Income Tax Returns in Pakistan?
Following is a list of persons that are required to submit an Income Tax Return for a tax year under income tax Ordinance (2001) Check if you fall into any of these categories.
- Every registered company in Pakistan
- An individual (other than a company) who has a taxable income exceeds the minimum limit, which is Rs. 400,000/- (Four Hundred thousand Rupees only)
- A non-profit organization commonly called NPO
- A welfare institution.
- An individual who is the owner of immovable property with a specific area (two hundred and fifty square yards or more)
- Every individual who is the owner of Muter vehicle above 1000 CC Engine capacity.
- Every individual who has a National Tax Number
- Every individual which owner of commercial or industrial electricity connection.
Benefits of Income Tax Return filing in Pakistan
- Help to avoid Penalties
- Claim Tax Refunds
- Proof of Legal Income and Address
- Helpful in Easy Loan processing from banks
- Helpful during Application of visa processing for reconciliation of income
- Carry forward losses
- On Winning a Prize Bond, Quiz Bond or Crossword Puzzle: Filer – 15%, Non-filer –30%
- Transfer of property: Filer – 1%; Non-filer – 2%I
- General Insurance Premium: Non-filers – 4%
- On cash withdrawal (Over Rs. 50,000): Filer – 0.3%, Non-filer – 0.6%
- immoveable property worth upto Rs. 4 million: No tax
All bank transactions: Filer – 0%; Non-filer 0.6%
- Advance tax on sale of demand draft, pay order etc.: Filer – 0%; Non-filer 0.6%
Income Tax Due Dates
Individual & AOP/ Firms
On or before 30th September
On or before 31st December
Company having a special tax year
On or before 30th September
The Penalty for Non-Filing Income Tax Return and Wealth Statement
When an individual fails to file Income Tax Return within the due time, he has to pay penalty.
Income Tax Return