Filing of Income Tax Return in Pakistan

Al-Noor Law is a reputable Tax Advisory Consultant Firm, offering cost-effective tax filing services. When dealing with complex corporate matters that require comprehensive enlistment and daunting form filling with numerous sections and subsections, our firm comes to the rescue. We take pride in providing top-notch income tax services in Pakistan. Our streamlined process allows clients to upload their information, and our team of experienced professionals meticulously examines and prepares the Income Tax Return draft, ensuring accuracy and efficiency.

What is Income Tax?

Tax is a compulsory fee imposed by the federal government on individuals or corporations, which can be at local, regional, or national levels. Income tax, being a consistent form of taxation, requires all liable persons to file their returns annually according to prevailing laws.

The collected income tax funds various vital government projects. Sahiwal, a prominent income tax consultancy in Lahore, offers expert assistance to clients in tax matters. Income tax plays a crucial role in reducing economic disparity in any country. Tax rates and calculation methods vary based on taxpayers' financial status, and they can fall into several categories:

  1.  Companies
  2.  Association of Persons (AOP)
  3.  Salaried individuals
  4. Non-Salaried Individuals

Filing income tax returns in Pakistan can be a tedious and mundane process, especially for individuals filing their returns. The preparation involves intricate calculations and documentation, consuming considerable time and effort. Often, people find it frustrating as they lack awareness of the underlying details used in these calculations. Furthermore, there is a deadline for filing tax returns, which adds to the discomfort.

To address these challenges, the Federal Board of Revenue, Pakistan, issues guidelines on income tax return filing, providing valuable information to the general public.

Who Needs To File Income Tax Returns in Pakistan?

The following is a list of individuals and entities required to submit an Income Tax Return for a tax year under the Income Tax Ordinance (2001). Please check if you fall into any of these categories:

  • Every registered company in Pakistan.
  • Any individual (other than a company) with a taxable income exceeding the minimum limit, which is Rs. 400,000/- (Four Hundred thousand Rupees only).
  • Non-profit organizations, commonly known as NPOs.
  • Welfare institutions.
  • Individuals who own immovable property with a specific area of two hundred and fifty square yards or more.
  • Individuals who own motor vehicles with an engine capacity above 1000 CC.
  • Every individual who has a National Tax Number (NTN).
  • Every individual who is the owner of a commercial or industrial electricity connection.
Benefits of Income Tax Return filing in Pakistan
  • Help to avoid Penalties
  • Claim Tax Refunds
  • Proof of Legal Income and Address
  • Helpful in Easy Loan processing from banks
  • Helpful during Application of visa processing for reconciliation of income
  • Carry forward losses
What is Wealth Statement?

Investors can set up the following types of companies in Lahore:

Every resident individual is required to submit their Wealth Statement along with reconciliation for the specific tax year in which they are filing their Income Tax Return. 

The particulars included in the Wealth Statement are as follows:

  • Personal Assets and Liabilities of the individual.
  • Assets and Liabilities belonging to the individual's spouse, children, and minors, including dependent assets and liabilities if applicable.
  • Details of any gifted assets, sold, or transferred during the tax year to any other person.
  • Comprehensive information on the total expenses incurred by the individual, their spouse, children, and dependents during the specific tax year.
  • The reconciliation of wealth with the previous year and the income earned during the current year.

Filing the Wealth Statement and providing these particulars is an essential requirement for residents filing their Income Tax Returns in Pakistan.

What are Tax Refunds?

If an individual files their income tax return online, they become eligible to claim refunds. However, manual filers of income tax returns are not entitled to receive any refunds.

The Income Tax Refund amount should be clearly stated in the FBR online system (IRIS). Refund applications must be filed separately in the FBR online IRIS system within two years from the date of filing the return or the tax payment date, whichever is later. To check the status of the refund application, the taxpayer needs to visit their Regional Tax Office in FBR.

Cases When Income Tax Returns Is Unsuccessful

Please note that your Income Tax Returns may not be entertained under certain circumstances. According to the Income Tax Ordinance 2001, it is crucial for every individual and company to ensure the accurate completion of Tax Return Forms with all necessary details and figures. Providing incorrect information can lead to penalties for individuals. Therefore, before filing your tax returns, it is essential to adhere to the following guidelines:

Ensure that your CNIC (Computerized National Identity Card) is valid.
Fill out all mandatory fields on the tax form accurately; they should not be left empty.
The Tax Return must be properly signed and verified by the taxpayer or their authorized representative.
Make sure that taxes are paid correctly, and CPR (Centralized Personal Registration) Numbers are accurate.

How Al-Noor Law can help you in filing Tax Return

Al-Noor Law is an Income tax consultant Firm in all over Pakistan that provides affordable tax filing services. If your corporal affairs need extensive enlisting, the form filling seems like a hectic job with numerous sections and subsections to cover.

Al-Noor Law is proving the best income tax filing services in all over Pakistan and surrounding regions. Usually, our Clients upload their documents for Tax filing, or our system and our tax experts analyze those documents to find out about Tax adjustments and saving. After scrutinize and preparing the tax return, we offer a chance to review by the client for cross-checking all the input information before the final submission of the income tax return.

Our professionals always try to make your Tax Returns easy and filed within time, which reduces the risk of Audit from the Tax department.