What is FBR?

What is FBR?

The Federal Board of Revenue (FBR) is responsible for collecting taxes in Pakistan. The FBR is responsible for administering the following taxes:

-Income ta

-Sales tax

The FBR also administers the customs duty and regulatory duty.

What is the purpose of filing Income Tax Returns in Pakistan?

In Pakistan, the main purpose of filing income tax returns is to ensure that taxpayers are compliant with the tax laws and regulations. This helps to improve the tax administration system and also provides the government with revenue to finance its expenditure. In addition, filing income tax returns also allows the government to keep track of the economic activities of businesses and individuals.

Who is required to file Income Tax Returns in Pakistan?

In Pakistan, any individual who earns a taxable income is required to file an income tax return. The deadline for filing income tax returns is typically 15th December of each year.

However, there are some exceptions to this rule. For instance, individuals who are self-employed or earn income from sources other than employment are required to file their returns by 15th December of each year.

Further, individuals who are salaried and have their taxes deducted at source (i.e. through the withholding tax system) are not required to file income tax returns if they meet certain conditions. These conditions include having only one employer during the tax year, having taxes deducted at the correct rate, and having no additional income from other sources.

What are the benefits of filing Income Tax Returns in Pakistan?

There are many benefits of filing your income tax return in Pakistan. By doing so, you are ensuring that you are compliant with the law and that your tax affairs are up to date. This can help to avoid any penalties or interest charges that may be applied if you fail to file a return.

In addition, filing your return can help you to claim any tax refunds or credits that you may be entitled to. It is also a good way to keep track of your income and expenses for future reference.

Overall, filing your income tax return is a good way to stay on top of your finances and ensure that you are meeting your tax obligations.

How to file Income Tax Returns in Pakistan?

It is compulsory for all Pakistani citizens to file their income tax returns if they earn more than the taxable limit set by the Federal Board of Revenue (FBR). The taxable limit for the year 2020 is PKR 400,000.

For salaried individuals, the employer withholds tax from their monthly salary and deposits it with the government. However, self-employed individuals or those who receive income from other sources are responsible for filing their own tax returns and paying taxes themselves.

The process of filing income tax returns in Pakistan is relatively simple and can be done online via the FBR’s e-filing portal. Returns can also be filed manually by visiting an authorized tax agent or by post.

Once you have registered on the e-filing portal, you will need to login and select the return form relevant to your income category i.e. salaried individual, non-salaried individual or company. After completing the form, you will need to submit it along with any supporting documents before the due date which is usually 30th June of each year.

If you are filing your return manually, you will need to obtain the correct forms from an authorized tax agent or the FBR office and submit them along with any supporting documentation to your nearest Taxpayer Service Center (TSC).

Once your return has been processed, you will receive a notice of assessment detailing your tax liability. If you agree with

Conclusion

The FBR has announced that income tax returns will now be accepted online in Pakistan. This is a positive development for taxpayers, as it will make the process of filing taxes more convenient and efficient. We encourage all taxpayers to take advantage of this new system and file their taxes online.

Usefull Links.

https://pak.tax/corporate-law-or-lawyers-in-karachi-islamabad-pakistan/

https://pak.tax/types-of-taxes-imposed-on-vehicles-in-pakistan/

https://pak.tax/ntn-verification-fbrs-online-ntn-verification-portal-pak-tax/