Pakistan has maintained lowest tax to GDP and this ratio of GDP is used for the assessment of the development of the country. If a country has higher Gross Domestic Product then the government can collect the highest amount of tax revenues and the sales and services of the exports are also increased. The people, who are employed and they are getting salaries, they should take care by filing the income tax returns.
The real-time interbank transfers are charged from the employees with new withholding tax (WHT) under the provision of section 235P of the Income Tax Ordinance 2001 for non-filers. It is decided that all banking transactions will be taxed at 0.3 percent of WHT till they file their income tax return by 30 November 2016. When the people buy their property or cars, they also pay the income tax and if the WHT is excessive than the applicable taxes, then the filing is the only method to help them to get the refund in thousands or rupees for average person.
If the people pay the income tax, then they get the better services at the airports, excise offices, and other benefits than the usual benefits, which are not offered to the non-filers of tax.
Things you need to know before filing income tax return
If your total income is exceeding to 400,000/- PKR or above in a year, then the income tax is applied to you. You need to file the income tax return and you can do it conveniently. The government determines the tax rate, which is applied to your earnings year by year. You should download the portal of FBR online to file the income tax returns, and they need to calculate the tax rates for year 2015 under the income slab in which they fall.
Get Registered Online with Enrolment System of FBR
FBR issued a SRO during last November and it showed that the filer can use their CNIC number as their NTN number and avoid the hassle in get registered their NTN. This development was made to avoid the problems in registering themselves as the tax payer in Pakistan. Now they can get registered their names as tax payer.
Guide for Filing Online Income Tax
1. You need to get Registration Number and password through enrolment process of FBR and click to go to the main page of Iris, the simplified ERP system of FBR for tax payer registration.
2. Now you need to go to Registration for the unregistered person and provide all required information. Then they send the confirmation input, which can validate their account through email or SMS. Then they will send their password or PIN to login with the account and this process will take few days due to some security reasons.
Guide for Filing Online Income Tax
3. When you are registered successfully and logged in, then you need to enter the registration number and password on main page of Iris, then you can file your wealth statement.
4. For the salaried persons, they need to fill the wealth statement along with income tax returns. They will follow the procedure to provide complete information of income tax return and wealth statement.
5. You can also find more detailed help about FAQs, income tax return, registration and more.
Video Tutorial How Prepare Your Wealth Statement
Video Tutorial How Prepare Your Income Tax Statement
Important things:
- If the individual is Pakistani, then he will enter thirteen digits on CNIC/NICOP without dashes.
- If the individual is non-Pakistani, then he will enter 7 digits NTN without dash and check digit.
- If the tax payer is AOPs or companies, then 7 digits of NTN are required without dash and check digit.
NTN Registration is required for companies and AOPs
If the tax payer is company or AOP, then they can register for NTN online and they should use internet explorer to carry out it and handle the problems while working with Chrome and Mozilla Fox.
1. They need to visit the website of FBR and chose the tab E-registration.
2. They need to mention their CNIC number, name and load the image.
3. They give the date of birth as per their CNIC with residential address, their activity, mobile number, land line number and email address.
4. When you fill in the form, you select the ‘Authorized Representative h/s 172 and select ‘Self’.
5. Then you click on ‘Save Registry’.
6. You need to enter the NTN of the employer in the next column and city of the employment, if you are working with any individual or company. If you are in business, then provide the details of business.
7. Now your application is complete and clicks on the print to get the print of the application and sign over it.
8. If you have NTN from the previous job, then it will alert you. If there is any doubt then you should use CNIC number to get it.
9. Then an NTN will be allotted to you after two working days through email.
10. You need to enclose the electricity bill, salary certificate and copy of CNIC with the printed application and take it to the concerned RTO office and NTN certificate will be issued to you.
The Last Word
It is hoped that this guide will help you in filing the tax return online and you do not have any confusion. The whole idea behind filing this tax returns that the government does not apply WHT on the banking transactions with you. When you file the tax return, then you can claim the WHT from FBR and you can carry out the audit and evaluate the returns and FBR will send the cheque to find that you are eligible for the refunds.
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