Income Tax Services in Pakistan
What is Income Tax?
Income Tax in Pakistan is a tax levied on the income of individuals, businesses, and other entities as per the Income Tax Ordinance, 2001. It applies to income from salaries, business profits, property, investments, and other sources. The Federal Board of Revenue (FBR) oversees tax collection, ensuring compliance for the country’s economic growth.
Who Needs to Pay Income Tax?
- Individuals: If your annual income exceeds PKR 600,000 (e.g., salaried individuals or freelancers).
- Businesses: All companies and Associations of Persons (AOPs) must file, regardless of income.
- Property Owners: Those owning large properties (e.g., over 500 sq. yards) or earning rental income.
- Overseas Pakistanis: If they earn taxable income in Pakistan.
Benefits of Being a Tax Filer
- Lower withholding tax rates on transactions (e.g., 3% vs. 5% on property deals for filers).
- Easier access to loans, government tenders, and visas.
- Avoid penalties and legal issues for non-compliance.
- Eligibility for tax refunds and credits.
Process to Become an Income Tax Filer
- Register for NTN (National Tax Number):
- Visit the FBR Iris Portal (fbr.gov.pk).
- Click “Registration for Unregistered Person.”
- Enter your CNIC, personal details, and verify via email/phone.
- Receive your NTN instantly.
- File Your Income Tax Return:
- Log into the Iris Portal using your NTN and password.
- Select the relevant tax return form for the year.
- Enter income, expenses, and deductions.
- Submit the return electronically by the deadline (usually 30th September for individuals, 31st December for businesses).
- Pay Any Dues:
- Calculate payable tax via the FBR system.
- Pay online through your bank and retain the receipt.
- Check Filer Status:
- Verify your status on the FBR Active Taxpayer List (ATL) by texting “ATL [CNIC]” to 9966 or checking online.
Required Documents
- For Salaried Individuals:
- CNIC copy.
- Salary certificate/statement.
- Bank statements (1st July to 30th June of the tax year).
- Tax deduction certificates (e.g., from employer or bank).
- For Businesses/Self-Employed:
- CNIC and NTN.
- Profit and loss statements.
- Balance sheets.
- Bank statements and tax deduction certificates.
- Records of expenses and assets.
- Additional (If Applicable):
- Property documents.
- Investment details.
- Utility bills in the filer’s name.
Charges for Filing Income Tax
- FBR Filing Fees: Free for online filing via the Iris Portal.
- Late Filing Penalties: FBR may impose fines (e.g., PKR 1,000/day for late filing) or surcharges for delayed ATL listing.
- Consultancy Fees: Our services start at PKR 3,000 for individuals and PKR 5,000 for businesses, depending on complexity. We ensure hassle-free filing, tax optimization, and compliance.
Why Choose Us?
Navigating income tax can be complex, but we make it simple. Our expert consultants at Income Tax Consultancy ensure:
- Accurate NTN registration and tax filing.
- Maximum tax savings through legal deductions.
- Timely submission to avoid penalties.
- Representation in FBR audits, if needed.
Contact us today to become a compliant tax filer and unlock the benefits of tax compliance in Pakistan!
