Our Income Tax Return Filing Lawyers in Karachi and Islamabad are the best in the business. Efile FBR Income Tax Annual Returns in time to avoid becoming an income tax non-filer and get the benefits that come with being an income tax filer.
The deadline for filing an income tax return is 30th September of the following year (for example, the deadline for TY 2021 was 30th June 2021). In the event that you fail to file a tax return by its due date, you will be charged a penalty of a half percent of the tax due per month until the filing is completed, but not more than Rs. 20,000.
In addition to filing your income tax returns manually, you can also file them electronically through the FBR’s website. Individuals’ instructions and requirements differ depending on various factors, such as whether they have been notified by FBR, whether they have been audited previously, etc.
Under the Income Tax Ordinance, 2001, every registered person and business in Pakistan receives a National Tax Number (NTN). Tax tracking numbers are used by the Federal Board of Revenue (FBR).
Anyone earning more than Rs. 400,000 per year must register with FBR and get their NTN. Companies with an annual turnover of over Rs. 3 million must also register with FBR and obtain NTNs.
Who has to pay income tax?
In accordance with the Income Tax Ordinance 2001, every person with legal income must pay taxes every year according to the government’s declared rates.
The purpose of income tax is to collect taxes from individuals or organizations based on their earnings. Salaries, interest, rent, dividends, and interest are all sources of income tax. Pakistan’s government collects direct taxes through this method. An individual who has not filed his or her income tax return for the previous year is considered a non-filer. Penalties or imprisonment may be imposed on these individuals since they committed an unlawful act.
A non-filer is subject to penalties based on section 41 of Pakistan Income Tax Rules 1999 or on section 99A(1)(b)(i) of Income Tax Ordinance 2001, depending on the circumstances. Non-filers will suffer direct consequences because if income tax is not paid, there is a good chance that someone else will also get into trouble due to some other reason, such as an insufficient source of funds. The only way to avoid this kind of trouble is to pay your taxes.
An individual’s tax year runs from July 1st to June 30th and shall be marked by the calendar year.
Taxable Income is determined by subtracting Total Income from donations and certain allowances that qualify for deductions. Businesses, however, may have different taxable incomes. Profits earned by an organization are subject to taxation.
Under the Tax Ordinance 2001, income is classified into five types: income from property, income from a business, income from other sources, and capital gains.
By Based on the Government of Pakistan’s 2021-2022 Federal Budget, the following tax rates and tax slabs will apply to salaried and non-salaried individuals:
An individual who earns more than 75% of their taxable income under the ‘Salary’ head will be subject to the following tax rates:
In the event an individual’s income under the ‘Salary’ head exceeds 75% of their taxable income, the following tax rates will apply:
In order to comply with government regulations, it is crucial that you are completely familiar with Pakistan’s taxation system. Taxocrate is a team of tax advisers in Karachi and tax lawyers in Islamabad. Besides tax consultancy, we also assist you with tax deductions and insurance conditions in your favor. Your energy and time will be better spent on the core business conditions. Tax lawyers in Karachi and tax advisers in Islamabad work in the following areas of tax consulting:
A salaried employee.
– The companies.
NGOs (Non-Profit Organizations).
During our process, we analyze your accounts books, make your Income Statement, make necessary amendments (if needed), and finish the Income Statement. We demonstrate the Return of Income after the process has been completed and the customer has approved it.
For your compliance with tax regulations, we provide you the following high-quality tax consultancy services:
Tax filing strategy development and planning.
Documentation of your tax returns.
To correspond with the FBR regarding taxes, you must enroll for a National Tax Number.
Working with the Financial Bureau of Revenue (FBR) to obtain interpretations, documentation, and approvals.
Preparation and filing of other tax statements (if needed).
Conduct tax audits and provide guidance in FBR audits.
Providing guidance and advisory services to clients on a day-to-day basis.
Managing appeals and objections.
Tax deduction guidance.
Clients receive income-tax refunds from the tax authorities.
Manage tax exemptions for educational institutions and non-profit organizations.