Likewise, the income tax is the contribution of people to the state because the state has some liabilities while having the state affairs. There is a prescribed format by the Government of Pakistan through its tax collection agency which needs to learn to file the income tax return while having the NTN. The FBR has an online and offline system to help the people while income tax return filing. In the following paragraph, we will learn how to file the income tax return in Pakistan.
What is income?
“The amount/money that somebody received by someone on a regular basis as a reward of the work or investment”.
What is tax?
“Tax is the amount/money which is levied by the government on the people who have the reasonable sources of the income i.e. salary, profit from the business, cost of some goods, services, and transaction”.
What is income tax?
“It is the specified amount that may be imposed by the state on the person’s income under the income tax law”.
Adjustable taxes under the income tax law:
Following taxes are also adjustable;
- The collection of advance tax by educational institutions is adjustable against the tax liability of either of the parents or guardians making payment of the fee, but it is not collected from the non-resident.
- The collection of advance tax on education-related expenses remitted abroad is also adjustable against the income of the person remitting payment.
- The collection of advance tax on insurance premium is adjustable U/s 236U of Income Tax Ordinance.
- Advance tax on dealers, commission agents, and arhatis, etc. “as the unions of markets or committees/body also collect the tax from the shopkeepers/business holders is also adjustable tax”.
- Advance tax deducted by marriage/banquet halls on functions & gatherings also adjustable.
- Advance tax on the purchase of air tickets.
- Advance tax by Telecommunication companies.
- Advance tax deducted by electricity companies for domestic, commercial as well as industrial electricity bills.
- Tax deducted by banks on cash withdrawal, non-cash transactions, and other transactions.
FBR is using the systematic matching technique to verify the taxpayer’s given information, all kinds of deducted taxes during the tax year should be recorded and verified by the FBR’s system.
Avoid hiding the rental Income because according to the LAW rental agreement must be submitted to the Police station.
Also, avoid hiding the Profit on Debt & Investment Saving Certificate, etc. because the tax had been deducted at sources, no need to afraid, and beneficial to declare it while filing the income tax return.