Why should you Submit Tax Returns in Pakistan?

In last couple of budgets I personally observed that some more extra benefits are given to the filers in Pakistan which we will discuss here in this article. Due to which I suggest everyone to submit their tax returns and avail all of those extra benefits which are briefly discussed here and will be updated with passage of time.

Unlimited Cash and Non-Cash Transactions;
For the first time in the history of Pakistan' it is observed that all the filers are excluded from With-holding taxed, which was 0.03% previously on cash and non-cash transaction of above 50,000 rupees. Now there will be no Tax deduction on withdrawl of any amount. This mean if you are a filer and want to send money to any person either by cheaque or net-banking, or even if you want to withdraw money from your account, no tax will be deducted from your account if you are a filer.

Adjustments of With-holding Taxes in your Final Taxation;
You might be strange to know that you pay lots of taxes to government in form of with-holding taxes (WHT) on your phone, mobile and internet billings and cards every month. Every filer is allowed to claim those with-holding taxes in their final taxation. Let me explain.
If your taxes for the year are 10,000 on your income and you have paid 7000 with-holding taxes already in your mobile/internet bills or cards, so you will have to pay only 3000 rupees. Previously 0.03% with-holding taxes on with-drawl of above 50000 from bank was also claimable, but as said in previous paragraph now there are no deductions on with-drawl so lets no discuss it here.
Similarly you are allowed to claim any sort of withholding taxes which you have already paid, that might be on flight tickets or any other purchasing who collects withholding taxes.

Avoid excessive Taxation from government in automated notice;
You might have observed that you are some of your family and friends are receiving notices from FBR to submit their returns, these notices are randomly sent by the system to everyone either on SMS or via email. Those notices might cause you a heavy taxation due to non-declaration of assets previously and government might consider all of your assets earned in one single year because previously as you have not declared them which will cause you heavy taxation considering all of your assets to be earned in one single year. For example if you're earning money from 2000 and onward and you have saved 10,000 rupees in a month so your total saving might 2.2m right now which you might have invested in buying some assets like houses, cars, property, gold etc. As you have not declared them in 2018 so government will consider this to be your income in 2019 and you will have to pay taxes on this which will be 162,000. This is just an example with latest figures and rates.

Become a responsible citizen of Pakistan;
Well, filing of income tax returns to pay extra taxes, this simply means to declare your assets no matter how much they are in order to avoid any misshapen in future. If you are a salaried person or businessman, you already are paying taxes to the government but not filing your returns which cause you lots of more heavy and double taxation as stated above. You not only can avoid double taxation by filing tax returns but can also get extra benefits which are discussed above. So be a responsible citizen and start filing your returns and get the extra benefits in your daily life which are already given to the filers and some more will be given in near future.

If you find this article helpful and want to file your tax returns, please visit; How to become Tax Filer in Pakistan?

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