Filing income tax returns with the Federal Board of Revenue (FBR) in Pakistan is an important responsibility for individuals and businesses. The process is complex and un predictable but if you have provided us with the correct information then sit back and relax. We are here to file your income tax returns. Here’s a detailed guide on how LEGITIMATE file your income tax returns in Pakistan:
For Whom LEGITIMATE File Tax Returns?
- Individuals
- Salaried individuals earning above the taxable limit.
- Self-employed professionals.
- Individuals with property income, capital gains, or other sources of income.
- Businesses
- Sole proprietorships, partnerships, and companies.
- Other Entities
- Associations of persons (AOPs) and non-profit organizations.
LEGITIMATE follow these steps for Income Tax Returns
1. Register with FBR
- For New Taxpayers:
- Registering with FBR.
- Obtaining a National Tax Number (NTN).
- For Existing Taxpayers:
- Ensuring your registration details are up-to-date.
2. Gathering Required Documents
- For Individuals:
- CNIC copy
- Salary certificates (if employed)
- Bank statements
- Property details
- Any other income documents
- For Businesses:
- NTN certificate
- Financial statements
- Bank statements
- Details of assets and liabilities
4. Preparing the Return
- Income Declaration:
- Declaring all sources of income, including salary, business income, property income, capital gains, etc.
- Expense Declaration:
- Providing details of expenses and allowable deductions.
- Asset and Liability Statement:
- Declaring your assets (property, vehicles, bank accounts, etc.) and liabilities (loans, mortgages, etc.).
- Wealth Statement:
- Submitting a wealth statement.
5. Filling Out the Return Form
- Selecting the appropriate return form.
- Entering all required information accurately.
- Ensuring to fill in details for the tax year.
6. Calculate Tax Liability
- Calculating client’s tax liability based on the declared income and applicable tax rates.
- Ensuring to claim any applicable tax credits, rebates, or exemptions.
7. Pay Any Due Tax
- If there is a tax payable, generating a Payment Slip.
- Paying the tax through designated banks.
8. Professionally Submitting the Return
- Reviewing all the entered details to ensure accuracy.
- Submitting the returns.
Important Deadlines
- For Salaried Individuals: Typically by August 31st of each year.
- For Businesses and Self-Employed Individuals: Typically by September 30th of each year.
- Extension: Extensions may be granted under certain circumstances, but it is advisable to file on time to avoid penalties.
Benefits of Filing Tax Returns with LEGITIMATE
- Legal Compliance: Avoid penalties and legal consequences.
- Tax Benefits: Eligible for various tax credits, rebates, and refunds.
- Financial Transparency: Easier access to loans and financial services.
- Active Taxpayer Status: Inclusion in the Active Taxpayers List (ATL), which offers various benefits, including lower withholding tax rates.