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Income Tax Return Filing
Documents Required
As per the Income Tax Ordinance, applicable in Pakistan Every taxpayer will file Income Tax return in a tax year in a due date.
Eligibility
Following persons are liable file their Income Tax Return irrespective whether they are registered with Federal Board Revenue (FBR) or Not:
- Company
- Every Person has obtained National Tax Number.
- Person whose taxable income for the year exceeds the maximum amount that is not chargeable to tax under this Ordinance for the year.
- Non-profit organization.
- Person whose income for the year is subject to final taxation under any provision of this Ordinance.
- Person holds a National Tax Number (NTN)
- Person owns immovable property with a land area of five hundred square yards or more or owns any flat located in areas falling within the municipal limits existing immediately before the commencement of Local Government laws in the provinces; or areas in a Cantonment; or the Islamabad Capital Territory.
- Person owns immoveable property with a land area of five hundred square yards or more located in a rating area.
- Person owns a flat having covered area of two thousand square feet or more located in a rating area.
- Person owns a motor vehicle having engine capacity above 1000 CC.
- Person is the holder of commercial or industrial connection of electricity where the amount of annual bill exceeds rupees five hundred thousand.
- Person is a resident person registered with any chamber of commerce and industry or any trade or business association or any market committee or any professional body including Pakistan Engineering Council, Pakistan Medical and Dental Council, Pakistan Bar Council or any Provincial Bar Council, Institute of Chartered Accountants of Pakistan or Institute of Cost and Management Accountants of Pakistan
- Every individual whose Income from business exceeds rupees three hundred thousand in a tax year
Consequences
The above-mentioned persons are liable to file their Income Tax Return within due date. Failing to file the income tax return within due date the taxpayer will have to face the following consequences;
- Disabling of mobile phones or mobile phone SIMS
- Discontinuance of electricity connection
- Discontinuance of gas connection
- Restriction on foreign travel from the country for a citizen of Pakistan, excluding persons holding National Identity Card for Overseas Pakistanis (NICOP), minors, students, persons proceeding abroad for Hajj or Umrah and such other classes of persons as notified by the Board.
- Double of Withholding Taxes
- In case of Purchase of Property rate of tax will be 12 to 20% based on the fair market value of the Property
- In case of sale of Property rate of tax will be 10%
- In case of Manufacturer, Distributor, Wholesaler, or commercial Importer of All sectors rate of tax will be 2.5%
Date of Filing
- Individuals and Associations of Persons (AOPs): On or before September 30th of each year.
- Companies with a normal tax year: On or before December 31st of each year.
- Companies with a special tax year: On or before September 30th of each year.
It’s important to note that the FBR has the authority to extend these deadlines under Section 214A of the Income Tax Ordinance, 2001.
Documents Required
- Detail of income.
- Detail of the assets (new assets acquired or old ones disposed-off and any new liabilities incurred or previous ones paid off indicating separately):
- Bifurcating Agricultural/Non-Agricultural Properties purchased.
- Investment in shares deposits and certificates of National Saving Schemes, mortgages, loans, advances, etc.
- Motor Vehicles indicating make, model and registration number
- Jewelry indicating description and weight
- Furniture and Fittings
- Assets held in the name of spouse, minor children & other dependents
Assets declared in Amnesty.
- Bank statement(s).
- Detail of Zakat and all taxes paid / deducted along with proofs (including income tax, property tax etc.).
- Electricity & telephone bills in case income tax has been paid on the same.
- In case of income from more than one business, breakup of Sales, Cost of Sales & Gross Profit of each business.
- Detail of personal expenditure bifurcating amount expended on:
- Residential Utility Bills;
- Education of children/spouse/self;
- Foreign/local travelling;
- Motor Vehicle(s) running expenses;
- Club membership fees;
- Other personal expenses.
- Number of family members/dependents.
- Detail of donations paid, contribution or premium paid to approved pension fund, markup paid to bank for construction or acquisition of a house, if any, along with proof thereof.
Disclaimer
The information available on this website is for general guidance only and does not constitute legal or professional advice. Decisions made based on this content are at your own risk, and we are not liable for any consequences. For specific advice, please contact at [email protected].
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