Income Tax Return Filing Lawyers

Income Tax Return Filing Lawyers in Karachi and Islamabad, Pakistan

Need help filing your taxes? Income Tax Return is a top professional law firm in Karachi and Islamabad. We can save you time and worry by efiling your FBR income tax annual returns. That way, you’ll get the benefits of being an FBR filer, while avoiding becoming an FBR non-filer.

The last date for filing an income tax return is 30th November of the subsequent year (for example, the last date of filing a tax return for TY 2021 was 30th June 2021). If you miss this deadline, you will have to pay a penalty. The penalty is based on the number of months that have elapsed since the due date. It’s calculated as half percent multiplied by the amount of tax payable per month, but not more than Rs. 20,000 in total.

The Pakistani government mandates that all individuals file their income tax returns. You can do it manually or electronically, depending on your compliance status with FBR and whether you’ve been audited in the past. The instructions and requirements will differ to meet your needs.

We Offer Low-Cost and Instant Filing of your Annual Income Tax Return, so you won't have to worry about being late.

Tax is a payment imposed by the United States government on individual citizens. It applies to anyone who makes taxable income and is an employee.

The most common sources of annual income are:

You can receive your salary whether you work inside Pakistan or outside of it as a foreign employee. For Capital Gains or Losses on Property or Investments within Pakistan (e.g. stocks and other assets)

The Income Tax Ordinance, 2001.

The taxation of income in Pakistan is governed by the Income Tax Ordinance 2001. The Federal Board of Revenue (BFR) has been allocated a duty to monitor the tax system in the country. In order to document taxes, an individual must have a National Tax Number (NTN).

The taxation structure of a country dictates its economic strength. Pakistani citizens are legally required to declare their assets, filling out annual tax returns, and paying their taxes on time. The recent tax reforms are meant to restructure the taxation system so that it’s easier, simpler, and more convenient for people to document and pay taxes.

There is a common misconception that tax paying is optional. The truth is that any evasion of taxes, whether intentional or not, is a criminal offense and the taxpayer may be penalized for the violation of the law.

Introduction

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Income Tax Registration (NTN)

The National Tax Number is a ten digit number issued to every registered person or business in Pakistan. It’s used for tracking income tax and other taxes, by the Federal Board of Revenue.

If you earn more than Rs. 400,000 per year, it is obligatory that you register your name with FBR and obtain NTN. Any company which has an annual turnover of over Rs. 3 million also needs to be registered with FBR and take possession of NTN.

What is Income Tax?

Income Tax Ordinance 2001, enacted by the government, declares that every person with any kind of legal income is liable to pay taxes for every tax year. Income Tax Ordinance 2001 provides rates for every individual as required by law.

Non-Filers are People who never have to Fill out Taxes

Income Tax is a process of collecting tax from individuals and organizations. The tax collected includes income, like salaries and interest. Income Tax paid to the government is also called direct tax. Non-filers are people who have not filed their income tax for the previous year. Punishments for not filing taxes can include fines or imprisonment, unless those individuals are non-resident Pakistanis or have applied for an exemption.

Penalty on Non Filers, When taxpayers fail to file their report, they may incur penalties that range from Rs.5,000 to Rs.25,000.

Non-filers are subject to penalties, which will be imposed in accordance with section 41 of Pakistan’s Income Tax Rules 1999 or under section 99A(1)(b) (i) of Income Tax Ordinance 2001, depending on the needs of the case. The penalties applied to non-filers will directly affect an individual’s well-being because if that person does not pay taxes then he/she might be in trouble for other reasons – such as no funds. If you want to avoid that, you must pay your taxes.

A Tax Year is the Twelve-Month Period for which an entity is Taxed.

The tax year is the one-year period beginning on July 1 and ending on June 30 of the next year.

The current tax rate in Pakistan is 25%.

To calculate the taxable income for a business, you must subtract contributions and other deductions from total income.

Last day for Income Tax Return Filing

Which are the top five Income Heads in Pakistan?

In Tax Ordinance 2001, different sources of income are classified into five(5) types – Income from property, Salary, income from a business, income from any other sources and capital gains on investments.

The following tax rates and tax slabs are applicable for salaried and non-salaried persons.

Your Salary is Taxed in One of Three Brackets: 10%, 20%, 30%.

An individual’s taxable income is determined by: Taxable Income- Limited by Salary

Taxable Income Tax:

If your taxable income is below Rs. 600,000 – Income tax rate= 0%.
If your taxable income is more than Rs. 600,000 but below Rs. 1,200,000- You will be charged 5% on the amount between 600,000 and 1,200,000.
If your taxable income is below Rs. 1,800,000 but above to Rs. 1,200,000 – Income tax rate= 30,000 plus 10% on the amount of 1,200,000
The following are tax brackets for taxable incomes between Rs. 1,800,000 to Rs. 2,500,000 – Income tax rate= Rs. 95,000 plus 15% on the amount above to Rs. 1,800,000.
For those who have incomes between 2,500,000 and 3,500,000 rupees – Income tax rate is Rs. 195,000 + 17.5% of income from 2,500,000 to 3,500,000 rupees.
If your taxable income is between
3,500,000 and 5,000,000 – Income tax rate= Rs. 370,000 plus 20% on the amount above 3,500,000.
If you earn between 5,000,000 and 8,000,000 rupees- You will pay an income tax rate of Rs. 670,000 plus 22.5% of the amount over 5 million rupees.
If taxable income surpasses Rs. 8,000,000 but is still under Rs. 12,000,000 – Income tax rate = Rs. 1,345,000 plus 25% on the amount above Rs. 8,000,000.
If your taxable income surpasses Rs. 12,000,000 but is below Rs. 30,000,000 – Income tax rate= Rs. 2,345,000 plus 27.5% on the amount above to the Rs. 12,00,000 threshold.
If your total taxable income is less than or equal to Rs.60,000,000 – Income tax rate = R.9,267,600. If your total taxable income is more than Rs.60,000,000 but less than or equal to Rs.100,000,000 – Income tax rate= Rs.8,487 per additional amount over RS 60 lakhs plus 20% of the amount over RS 100 lakhs and so on.
If you earn below Rs. 50,000,000 – Income tax rate= Rs.13,295,000 plus 32.5% on the amount between Rs. 50-75,000,000.
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If your taxable income exceeds Rs.75,000,000— Income tax rate= Rs.21,420,000 + 35% of the amount above that.

TAX SLABS FOR NON-SALARIED PERSONS

If an individual’s income falls under the ‘Salary’ category, it’s not over 75% of taxable income, for that individual, then these below tax rates will be applied:

So, for example, if your taxable income is Rs. 200,000, you would pay 39.6% in federal taxes

If you earn below Rs. 400,000, your income tax rate is 0%.
Above 400,000 – Income tax rate= 5% on the amount over to 400,000. Below 600k – Income tax rate= 5% on the amount up to 600,000.
If the taxable income is less than Rs. 1,200,000, the income tax rate is 10%. If the taxable income is more than Rs. 600,000 but below Rs. 1,200,000 then the tax rate is Rs. 10,000 plus an additional 10% for every amount of Rs. 600,000 that exceeds 600,000 up to 1,200,000).
If taxable income surpasses Rs. 1,200,000 but is not more than Rs. 2,400,000 the income tax rate is Rs. 71,000 plus 15% of the amount over Rs. 1,200,000.
If you earn over Rs. 2,400,000 but under Rs. 3,000,000 — Income tax rate = Rs. 250,000 (20% of the amount above Rs. 2,400,000).
If your taxable income is above Rs. 3,000,000 but under Rs. 4,000,000 – Income tax rate= Rs. 450,000 plus 25% of the amount above Rs. 3,000,000.
When your taxable income is over Rs. 4,000,000 but under Rs. 6,000,000 – Income tax rate= Rs. 620,000 plus 30% on the amount above to Rs. 4,000,000
If your taxable income exceeds Rs. 6,000,000, then the Income tax rate = Rs. 1,220,000 plus 35% on the amount above Rs 6,000,000

Ready to get your tax return filed?

You might have come across strict regulations set by the government. This is under the Pakistan Taxation system, which it’s now necessary for you to be fully compliant. Taxocrate and its tax lawyers in Karachi and tax advisers in Islamabad will not only give you a tax consultation but also aid you during the process. This will help you with deductions and insurance for your business. So that, you can focus all your energy on growing your core business conditions! We are here to help so that you follow these regulations. Our tax lawyers in Karachi or tax advisers in Islamabad will make sure that we’re compliant with all governmental laws!

– Personality.

Salary.

– How does this work for businesses?

– Organizations.

Through our careful analysis of your accounts books, we can create your Income Statement. We’ll then amend it as needed (or create a new Income Statement) and finish the document. Lastly, once complete, we show you the Return of Income alongside our discussion with you and after getting your approval.

TAXOCRATE SERVICES DISCOUNTS

We provide a full range of high-quality tax services for your needs. These include:

The strategy development and planning of your tax filing.
Ensuring your business is compliant with tax requirements.
Tax ID registration for appropriate correspondence with FBR.
Issues related to taxation, for example, taking interpretations, documentation and approvals from FBR.

Automatic Financial Planning

Electronic Challan Payment and Preparation.
Filing and Preparation of necessary tax statements (if needed).

As part of your audit, you will receive guidance on FBR audits and tax audits.

As a tax advisor, we provide guidance and advisory on day-to-day issues faced by your clients.

You’ll be responsible for dealing with customer objections and appeals.
Guidance on Tax Law • Assistance with Tax Deduction
Refurbishing of Income-tax to customers.

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