HOW A SALARIED PERSON CAN FILE INCOME TAX RETURN IN PAKISTAN
Federal Board of Revenue (FBR) has made it compulsory for all salaried employees (government and private) having taxable income to file their income tax returns from Tax year 2015. This move has been taken in order to raise the number of tax returns. As per the laws of taxation, providing a wealth statement along with tax return filing will now be a compulsion for all salaried employees. As per FBR, they are expanding the tax net towards those who are currently non-filers. In a further attempt to make the people realize their duty for paying taxes, the FBR has published the losses that the people may have to suffer, if they don’t take their tax paying duty seriously.
If the people do not file their taxes, a 20% dividend income will be extracted instead of 10% in case of paying taxes. The bank will charge 15% profit when tax return is not paid, instead of 10%. On cash withdrawal, about 0.5% will be deducted instead of 0.3%, if the tax return is not paid. On selling of property, 1% will be deducted instead of 0.5% if the tax return is not paid. When purchasing a property, 2% will be deducted instead of 1%, when tax returns are not paid.Similarly in case of vehicle purchase, lower rates are implied on registration by Filers as compared to non-filers of the tax returns.