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.
Penalty
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.
FAPL
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