How To Become a Tax Filer In Pakistan?
This is essential for all Persons to file income tax return that comes under the category defined by Income Tax Ordinance, 2001. Understanding about filing of Income Tax Return is most important for every Taxpayer either he should e file or manual submit his income Tax Return. There are penalties for Non Filing of Income Tax Return in Pakistan which is due when a Taxpayer didn’t file his Income Tax Return instead of knowledge.
Govt of Pakistan categorise the Taxpayers into filer and Non filer which means the Taxpayer who will file his Income Tax Return alongwith all requisites required by FBR will become a filer and Taxpayer who will not file his income Tax Return will become a Non Filer. Being a Filer has so many advantages which he can avail in buying and selling property, cash withdrawal from Bank, Bank Profits, and Dividends etc.
There are two methods for filing Income Tax Return to become filer in Pakistan.
Manual Filing of Income Tax Return
- Download the Income Tax Form from FBR Website.
- Fill out Personal Particulars, Source of Income, Business/ Personal Expenses, Taxes and deductions, etc for Income Tax Return and Assets, Liabilities with reconciliation for Wealth Statement during the relevant Tax Year.
- After completing those forms sign and submit in the relevant Department. Remember to keep acknowledgment of the same.
Online Filing/ E-File of Income Tax Return
For Filing Income Tax Return, Taxpayer should have valid NTN. Taxpayer will have to register his details to create a login on IRIS. After registration Taxpayer will have access to the system for filing his Income Tax Return and Wealth Statement through User ID, Password and Pin code. Taxpayer can login and after completing the information can submit his Income Tax Return and Wealth Statement.
When the Income Tax Return will be submitted alongwith Wealth Statement, Taxpayer will automatically become Filer when system will update all records. You can check Active Taxpayer status by visiting FBR Website or sending massage on 9966 by writing ATL Space CNIC for example Type (ATL 35202 XXXXXXX1) in massage and send massage on 9966.
Benefits of Becoming Filer in Pakistan
Income Tax Return is mandatory to file. Individuals, Firm and Companies who are filing their Income Tax Returns are getting benefits from different sectors in Pakistan.
Followings are some of the benefits which will show a clear picture how an Individual, Firm and Company can get benefited after becoming Filer.
- Less Taxes in Buying/Selling/Transfer of Immovable Property.
- Less Taxes on Registration/Transfer/Token of Motor Vehicles.
- Less Taxes on WHT on Cash Withdrawal from Banks.
- No Taxes on Issuance of Banking Instruments [Cheques, Payorder, Demand Drafts etc] and Money Transfer.
- Less Taxes on Bank Profits / Saving Certificates / Dividends / Commission / Prize Bonds winning etc.
- Less Taxes on providing professional Services.
- Preference for eligibility in all loan applications from Banks
- Eligibility for obtaining government tenders, registration on corporate panels:
- Easy Income Assessment of Individual while processing Visa Applications
- Avoidance from Audit and Penalty of Rs. 40,000/- for non-filing of Income Tax Return
Tax Filer can Claim Refund / adjustment of followings while filing Income Tax Return
- Cash Withdrawal from Bank under section 231
- Advance Tax on sale or transfer of immoveable property under section 236 C.
- Advance Tax on function and gatherings under section 236D.
- Collection of Advance Tax by Educational Institutions under section 236 I
- Advance Tax on purchase of Immoveable Property under section 236K
- Income Tax/ Withholding Tax on Purchase, Registration, Transfer and Token of Motor Vehicles under section 234
- Advance Tax on Domestic Electricity Consumption under section 235A
- Advance Tax on International Air Ticket under section 236L
- Advance Tax on Banking Transaction other than cash under section 236P
- Withholding Tax paid on Mobile Phone Bills under section 236(1)(a)
- Withholding Tax on Telephone Landline Bills under section 236
- Advance Tax on purchase of Air Ticket under section 236B
Note: If Taxpayer is filing his/her Income Tax Return and Wealth Statement first time that will not become a filer until the last date of filing is finished. In particular case Taxpayer has to submit Income Tax Return and Wealth Statement for preceding Year as well alongwith surcharge of Rs. 1000/-.