Income Tax Return Filing Services in Karachi-Islamabad

Best Return Filing Service of Income Tax

The best income tax lawyers in Karachi and Islamabad are here to help you file your FBR income tax on time and avoid becoming an income tax non-filer.

Every year, income tax returns must be filed by 30th September. If you fail to file a tax return by the due date, you will have to pay a penalty equal to half a percent of the tax payable per month until the return is completed, but not exceeding Rs. 25,000.

In order to file your income tax returns, you can use FBR’s website to file them electronically. Different individuals have different instructions and requirements depending on factors such as whether they have been notified by FBR or not, whether they have been audited in previous financial years, etc.

Filing of the Annual Income Tax Returns

Those who work as employees are affected by income tax, which is a levy on income earned within the country.

Income tax returns are based on the following items of income:

• Employees of foreign companies receive both salaries inside and outside Pakistan
• Gains or losses resulting from the sale of properties or investments held in Pakistan (such as stocks and other assets)

As per the 2001 Income Tax Ordinance

The Income Tax Ordinance 2001 defines the tax laws in Pakistan. The Federal Board of Revenue (FBR) regulates the taxation system in the country. The NTN registration is required to file tax returns.

Under the law, Pakistani citizens are required to declare their assets, file their annual tax returns, and pay their taxes on time. A few months ago, new tax reforms were announced, aimed at restructuring the Pakistani taxation system by making it easier, simpler, and more convenient for people to get under the tax net and pay their taxes on time, by encouraging them to submit tax returns and pay taxes on time.

The myth that paying taxes is optional is widespread among people, but it is actually a criminal offense, and tax evaders may be punished for their unlawful actions.

Registration with the NTN for income tax purposes

A National Tax Number (NTN) is an identification number issued by the Federal Board of Revenue (FBR) to every person or corporation registered in Pakistan. It is used for income tax tracking and other tax purposes.

FBR requires anyone earning more than Rs. 400,000 per year to register with them and obtain their NTN. Companies with a turnover exceeding Rs. 3 million are also required to register with FBR.

Who is responsible for paying income tax?

According to the Income Tax Ordinance 2001, every person with any kind of legal income is required to pay taxes based on government-established rates.

How do non-filers differ from filers?

As a result of income tax, individuals or organizations pay taxes on their incomes. Pakistan’s government collects income tax from all sources, including salaries, interest, rent, and dividends, and it is referred to as direct tax collection. Non-filers are individuals who have not filed their income tax returns for the previous year. These individuals can be penalized for engaging in an unlawful act, which may result in penalty charges or imprisonment.

Penalty on Non-Filers

Penalty charges will be imposed on non-filers in accordance with section 41 of the Pakistan Income Tax Rules 1999 or under section 99A(1)(b) (i) of the Income Tax Ordinance 2001, depending on the suitability of the case. An individual’s well-being will be directly affected by the penalties imposed on non-filers, as if income tax is not paid, it is most likely that due to some other reason, such as an insufficient source of income, one will also find themselves in trouble. This means that you have no choice but to pay your taxes so that you may avoid such kinds of problems.

How does a tax year work?

The tax year is a twelve-month period beginning on 1st July and ending on 30th June.

In Pakistan, how much income is taxed?

Generally, taxable income is calculated by subtracting donations that qualify for deductions and certain allowances. For businesses, however, taxable income varies. Taxes are applicable to all profits.

Filing deadline for income tax returns

The deadline for filing income tax is 31st October 2022

In Pakistan, what are the income heads?

According to the Income Tax Ordinance of 2001, income can be classified into five(5) different types, including income from property, salary, business income, and capital gains.

According to the 2021–2022 Federal Budget of Pakistan, the following tax rates and tax slabs apply to salaried and non-salaried individuals.

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