Income Tax Return Archives - FAPL

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December 13, 2022

As a responsible Pakistani, you have to pay taxes on time. If you won’t, then you’ll face penalties for not filing your tax return. Under the tax laws, there are penalties if an individual fails to file an income return within the due date under Section 114 of the Income Tax Regulations. If the declaration is not submitted before the expiry date, that person will have to pay fines.

Now, look at the penalties that should aware of.


What Penalties Will You Face?

According to Section 114

Late Filing Penalties

0.1% of the tax payable for the missed tax year on any day and a maximum of 50% of the tax payable provided that the above fine is less than Rs 40,000 or no tax is paid in that tax year then that person shall have a pay fine of Rs. 40,000

But, when the level of income is 75% of the level of salary income and the level of salary income is less than Rs.50 lakhs, the minimum fine, in this case, is Rs 5000.

Fail to Provide Reconciliation of Wealth Statements

If you failed to present the reconciliation of wealth statements or the statement of wealth then you must have to pay the penalty of 0.1%/week of taxable income or Rs 100,000 whichever is excessive.

Fail to Submit Foreign Assets & Income Statement in due time

If you failed to submit these assets, then you have to pay a penalty of 2% of foreign income or assets per year.

Penalty on Misleading

In this case, you have to pay Rs 25,000 or 100% of the tax amount.


According to Section 182A

As per FBR regulations, the taxpayers who do not file their returns by the due date will not appear on the list of active taxpayers for the year the returns were paid. That person will only be included on the list of active taxpayers on condition that he/she will pay the following surcharges:

  • Rs 1000 (Individual)
  • Rs 20,000 (Company)
  • Rs 10,000 (An association of persons)

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Other Penalties of being Non-Filer

The taxpayer’s failure to file an income or wealth declaration without an excuse within the time limit prescribed by the court is considered an offense and is punishable by law, with an individual being liable to a fine of not more than fifty thousand rupees or imprisonment for more than two years or both.


Are Paying Taxes and Filing the Same?

Often people get confused about the difference between paying taxes and filing taxes. Both are different terms with different concepts. In this respect, people escape from the responsibility of “tax returns”.

Paying taxes is like paying the government the amount of tax you owe on the categories of wages, business income, utilities, vehicles, property, and other sources. On the other hand, filing a tax return is equivalent to documenting your taxes paid in and requesting a tax refund in case of overpaid taxes.

December 6, 2022

The first tax return is a major milestone for any taxpayer, especially the young one who is filing for the first time. In the past, your parents may have done your taxes for you, but now it’s your turn to take care of your finances and file your own tax return.

To help you navigate the process, here are some quick tips on filing taxes for the first time.


How much do you earn? Keep an Eye on it!

Expecting a refund? File your tax return immediately. In January, February, and even March you can still receive important tax documents in your mailbox, by email, or online.

Documents you require include:

  • W-2
  • 1099 forms
  • Tax forms detailing other types of income
  • Tax deductions and receipts.

If you file your tax return without using one of these forms, you may need to amend your tax return later. Take a minute and think about everything you did last year that might have an impact on your taxes. This may include:

  • Job change
  • New savings account opening
  • Stocks’ selling
  • Mutual funds
  • College or University fee payment


Keep Receipts

Keep track of tax-related paperwork throughout the year to make your life easier during tax season. It is better to save receipts for things like charitable donations, working expenses, and medical payments.

Also, save student loan or investment bills and any grant. Keep them handily organized. It simplifies the process. You must retain your records even after filing the tax.


Whether your parents can claim you as a dependent or not – Decide it

Tax-related deductions and credit tax deductions can increase your refund and lower your overall tax bill. Ensure you take advantage of all the benefits you’re entitled to. Some common tax deductions and credits for first-time applicants include;

  • Education credits
  • Standard or individual deductions
  • Earned Income tax credit
  • Working from the home deduction in case of self-employed

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E-submission of tax

Today you can do almost anything from paying your bills to filing taxes online. Using FAPL services, you can simplify the tax return process more conveniently by walking you through a series of questions, filling out the correct forms, and helping to ensure you’re claiming all the correct credits and deductions.

If you choose to file your tax return via email instead of printing it out and mailing it to the IRS, you don’t have to worry about correct postage or queuing at the mail.

IRS appreciates taxpayers submitting their tax returns via e-file. They often receive their refund in less time. You can often get your tax refund even faster by having your tax refund deposited directly into your checking or savings account.

December 6, 2022

The Government of Pakistan has offered more than 150 opportunities/activities to encourage and motivate every citizen of Pakistan to become a filer by filing their income tax return to the FBR. More and more instances are being created every day to offer maximum tax benefits to those with taxpayer status. Filing your income tax returns with FBR can save you a lot of money compared to non-filers.


Who is a Filer?

In Pakistan, a filer is a person who regularly declares annual income tax and sales tax. He/she is included in the list of “Active Taxpayers (ATL)” drawn up by the Federal Office of Finance (FBR). 

If you wish to become a taxpayer, file your annual tax return on the FBR’s IRIS online portal. As an applicant, your name will appear on the Active Taxpayer List (ATL) that FBR shares with the public.

Once you are listed, you will be eligible to enjoy the benefits of filing income tax returns in Pakistan.

Now, have a look at the enormous benefits for tax filers in Pakistan.


Half Withholding Tax

As a filer, you only have to pay half the withholding tax. Meanwhile, people who don’t file taxes will have to pay the full amount. 


Property Ownership

If you are a filer you can buy any property in Pakistan. But people fleeing income tax cannot buy a property worth more than 5 Million in Pakistani rupees.


Relief in Imports and Exports

If you are a filer, you only have to pay a 5.5% duty on imported raw materials. However, non-declarants have to pay 8% of the total import of the same raw material. For commercial exports, filers only have to pay a 6% duty on each transaction. On the other hand, non-filers have to pay a 9% fee for the same transaction.


Cut on Dividends and Banking Schemes

Filers benefit from a 5% cut in dividends compared to non-filers. When a company distributes dividends (profits) to employees, the filer has to pay a 15% tax. Meanwhile, the non-filer has to pay 20% tax. 

There are various schemes by banks that offer a return or savings. The filers in turn enjoy a 5% reduction in these schemes compared to non-filers Filers pay 10% tax while non-filers pay 15% tax. 

Savings on Price

When a taxpayer wins prize money through an award bond, they save 10% in taxes. You only have to pay 15% tax while the non-filer pays 25% tax on the prize money.


Reduction in Auction and Property Transfer Tax

When taxpayers transfer their property, they only have to pay a 1% tax. But non-filers have to pay a 2% tax for the same work. 

When various auctions are conducted, whether private or government, taxpayers save 5% on their taxes. As a filer, you only have to pay 10% tax, while non-filers pay 15% tax.


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October 28, 2022

Almost all telecom companies in Pakistan issue tax deduction certificates. Unfortunately, most people don’t pay attention to it. Have you heard about SIM card withholding tax deductions? Many people are familiar with the tax certificate but are unaware of how to get one.

In this article, we will guide the procedure of gaining tax certificates from various telecom companies. Keep reading to learn more!


Ufone Tax Certificate

Many people in Pakistan use this SIM for communication purposes within the country and around the world. Because of this, they were among the first to introduce the tax certificate to financially benefit their customers. There are two easy ways to get a Ufone tax certificate:

  • Website
  • App.

For Website:

  • Visit Ufone’s official website(
  • Create your online portal by confirming your email.
  • Now go to “Tax Statement” in the “Usage” drop-down menu.
  • Your certificate will start downloading.

For App:

  • Create an account in the app by verifying your phone number.
  • Click the Control Tab button.
  • Select the tenure.
  • Click OK to start downloading.


Zong Tax Certificate

Zong’s customers are growing at a fast pace. It is a Chinese-owned telecom company in Pakistan. You can get its tax certification in two ways:

  • E-care
  • App

From E-care

  • Visit the Zong website (
  • Create an account and verify it.
  • Click the Usage History tab in your online portal.
  • Your certificate will start downloading

From App:

  • Log in to your account.
  • In the Options tab, click on the tax certificate.
  • Enter the start and end date.
  • Your certificate will start downloading


Telenor Tax Certificate

You can get a Telenor tax certificate in two ways:

  • Through Email
  • Through customer support

Through Email

You have to email your request with the start and end date to Things required in this email include:

  • Image of CNIC (both front and back)
  • Your number (must be Telenor number)
  • Tenure details

Through Customer Support

For customer support, you can call on Telenor helpline or chat support.


Jazz Tax Certificate

Jazz has millions of customers in Pakistan. As the biggest telecom company in Pakistan, it provides its customers with the easiest way to get a tax certificate.

  • Through WhatsApp
  • Through App

Through WhatsApp

Just follow all the steps and you will have the tax deduction certificate on your mobile phone.

  • Send a message to 0300-3008000
  • In response, you will receive several packages
  • Select no. 6; “tax certificate”
  • Customer Service will issue you with the certificate.

Through App

The process through the app is simple also. You just have to go through these steps:

  • In the menu, go to Support
  • Here, you will see the Tax Certificate option
  • Select the year, and your download will start


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September 13, 2022

Here we discuss everything you need to know about calculating your payroll tax according to the latest Payroll Tax Tables 2022-23 in Pakistan. 

In this article, we also provide an income tax table for the year 2022-2023 in Pakistan.

Have a look at them!


Divisions of Salary Income

Income from work is subject to the following subdivisions, including:

  • Base Salary
  • Home Rental Allowance (HRA)
  • Transportation Allowance
  • Medical and other allowances.


Basic Salary

It is a fixed amount of money that you can receive with no additional payments or deductions. It does not include any kind of diets, commissions, bonuses, or overtime pay.


Home Rental Allowance

The Home Rental Allowance (HRA) is a percentage of your gross salary. It depends on your net salary. Generally, the subsidy towards rent is about 40 to 50 percent of your basic salary.


Conveyance or Transportation Allowance

About 10 to 15 percent of wages are used for travel allowances. For example, if you earn PKR 60,000 per month, that amount includes a travel allowance of approximately PKR 6,000 to 9,000.


Medical and Other Allowances

Many employers offer a separate sickness allowance. The same applies to other types of allowances, such as entertainment, travel, and fuel.

Sickness Compensation up to 10% of base salary is tax-free and can be deducted from salary income to calculate taxable income.

In accordance with the revised income tax tables for the financial year 2022-23, the income tax rates have been revised and increased compared to the previous financial year, 2022. 

Below is a table mentioning the income tax rate on a taxable income. This will help you get the most out of it.


Taxable IncomeCurrent Income Tax Rate
If a taxable income does not exceed to Rs 600,00Tax rate is zero (0)
If a taxable income exceeds to Rs 600,00 but not more than Rs 1,200,000Tax rate is 2.5 per cent of the amount exceeding Rs 600,000
If a taxable income exceeds to Rs 1,200,000 but not more than 2,400,000Tax rate is 12.5 per cent of the amount exceeding Rs 1,200,000 + Rs 15000
If a taxable income exceeds to Rs 2,400,000 but not more than 3,600,000Tax rate is 20% of the amount exceeding Rs 2,400,000 + Rs 165,000
If a taxable income exceeds to Rs 3,00,000 but not more than 6,000,000Tax rate is 25 per cent of the amount exceeding Rs 3,600,000 + Rs 405,000
If a taxable income exceeds to Rs 6,000,000 but not more than 12,000,000Tax rate is 32.5 per cent of the amount exceeding Rs 12,000,000 + Rs 2,955,000
If taxable income exceeds 12,000,000Tax rate is 35 per cent of the amount exceeding Rs 12,000,000 + Rs 2,955,000 


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September 7, 2022

Income tax is the applicable tax on your annual income, which can be derived from any source, including salary, business, wealth, and other bank savings.

Pakistan residents are required to pay income tax and file an FBR income statement.

Have a look at the documents required for income tax filing in Pakistan.


  • Your CNIC number (For registration, a CNIC copy is also required)
  • Your mobile phone number (You can also provide the phone number of any family member, but ensure the number has not previously been submitted to NTN)
  • An active and valid email address.
  • Professional Activities/Principal earning
  • If you have any NTN certificate, a copy of it is required.
  • If you have any share in a firm, partner in any firm, or have investment in defense saving certificates or any other investment, then photocopies and a description of evidence is also required.
  • Photocopies of salary certificate and tax challans
  • Foreign source of income description and tax deduction on that income (if any).
  • Photocopies of donation and zakat evidence
  • Evidence of Agriculture income and tax paid on it (if any).
  • Last year’s income tax return filing information (if any).
  • Description of all land/houses sold/bought during the year, source of income/receipts (cash/bank), details of property, amount received against sale/Paid against purchase, or any other source of income for which proof is in the form of a document or received directly from the bank by crossed check.
  • Evidence of business expenses and income (for employers)
  • Copies of sales tax return
  • Submitted information on withholding statements

Why do you need to file your Income Tax Return on Time?

You will remain safe from the following actions if you file your income tax return on time.



Failure to file an ITR (income tax returns) within the due date may result in a fine and other consequence under income tax regulations. The delay in filing the ITR may also result in interest on the tax payable.


Legal Action

In the event of a delay or non-compliance, the Income Tax Department can send a notice and compound your legal problems. If the IT department is still dissatisfied with the response to the notification and finds a valid reason, they can also take legal action.


Loan Approval

A clean income tax return makes it easier for lenders to approve loans. In the case of a loan application, banks require borrowers to provide a copy of the ITR statement as proof of income.

Income tax returns are a required document for approval of a formal loan. Those who do not file tax returns may have difficulty getting loans approved by institutional lenders.


To Carry Forward Losses 

Income tax regulations allow losses to be carried over to the following year if the ITR is filed before the due date. This allows taxpayers to reduce their tax liability on future income.



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