Ever wondered if you need to file an income tax return in Pakistan? It’s a common question, and in this blog post, we’ll break it down for you. Let’s get straight to the basics and find out who exactly is required to file their income tax return in Pakistan.
This post is according to the laws and regulations of Pakistan. If you have any questions or want to file your tax return please connect us via WhatsApp or fill out our contact form.
As per Sub-section (1) of section 114 of the Income Tax Ordinance, 2001.
The following persons are required to furnish a return of income for a tax year, namely:–
(a) every company;]
(ab) every person (other than a company) whose taxable income for the year exceeds the maximum amount that is not chargeable to tax under this Ordinance for the year;3[or]]
(ac) any non-profit organization as defined in clause (36) of section 2;
(ae) every person whose income for the year is subject to final taxation under any provision of this Ordinance;]
(b) any person not covered by clause 2[(a), (ab), (ac) or (ad)] who,—
(i) has been charged to tax in respect of any of the two preceding tax years;
(ii) claims a loss carried forward under this Ordinance for a tax year;
(iii) owns immovable property with a land area of 3[five hundred] square yards or more or owns any flat located in areas falling within the municipal limits existing immediately before the commencement of Local Government laws in the provinces; or areas in a Cantonment; or the Islamabad Capital Territory4[;] ]
(iv) owns immoveable property with a land area of five hundred square yards or more located in a rating area;]
(v) owns a flat having covered area of two thousand square feet or more located in a rating area;]
(vi) owns a motor vehicle having engine capacity above 1000 CC;
(vii) has obtained National Tax Number10[; or]
(viii) is the holder of commercial or industrial connection of electricity where the amount of annual bill exceeds rupees 2[five hundred thousand]
(ix) is [a resident person] registered with any chamber of commerce and industry or any trade or business association or any market committee or any professional body including Pakistan Engineering Council, Pakistan Medical and Dental Council, Pakistan Bar Council or any Provincial Bar Council, Institute of Chartered Accountants of Pakistan or Institute of Cost and Management Accountants of Pakistan 7[; or]
[(x) [is a] resident person being an individual required to file foreign income and assets statement under section 116A.]
(c) persons or classes of persons notified by the Board with the approval of the Minister in charge.]
(1A) Every individual whose income under the head ‘Income from business’ exceeds rupees three hundred thousand but does not exceed rupees 12[four hundred thousand] in a tax year is also required to furnish return of income from the tax year.]
Why I should file an income tax return?
You can check this article in detail or Watch this attached video
Why I should file an income tax return?
To sum it up, figuring out who needs to file income tax returns in Pakistan is key to financial peace of mind. If you found this guide useful, imagine how smooth the process can be with expert help! We’re here for you.
If you have questions or need assistance, feel free to reach out to our tax consultancy. Let’s simplify taxes together!
