Menu
Before Registration and Filing of your Income Tax Return, it is recommended that one should establish basic understanding regarding these processes. Knowledge of basic concepts would not only ensure that the tasks are performed easily but also in the prescribed manner.
Taxable Income means Total Income reduced by donations qualifying straight for deductions and certain deductible allowances.
Total Income is the aggregate of Income chargeable to Tax under each head of Income.
Under the Income Tax Ordinance, 2001, all Income are broadly divided into following five heads of Income:
An Association of Persons, a Company and an Individual are Non-Resident for a Tax Year if they are not Resident for that year.
Is defined in section 101 of the Income Tax Ordinance, 2001, which caters for Incomes under different heads and situations. Some of the common Pakistan source Incomes are as under: –
Is any Income, which is not a Pakistan source Income.
Includes a firm (the relation between persons who have agreed to share the profits of a business carried on by all or any of them acting for all), a Hindu undivided family, any artificial juridical person and any body of persons formed under a foreign law, but does not include a Company.
Is a period of twelve months ending on 30th day of June i.e. the financial year and is denoted by the calendar year in which the said date falls. For example, tax year for the period of twelve months from July 01, 2017 to June 30, 2018 shall be denoted by calendar year 2018 and the period of twelve months from July 01, 2018 to June 30, 2019 shall be denoted by calendar year 2019. It is called Normal Tax Year.
Means any period of twelve months and is denoted by the calendar year relevant to the Normal Tax Year in which closing date of the Special Tax Year falls. For example, Tax Year for the period of twelve months from January 01, 2017 to December 31, 2017 shall be denoted by calendar year 2018 and the period of twelve months from October 01, 2017 to September 30, 2018 shall be denoted by calendar year 2019.
The first step of filing your Income Tax Return is to register yourself with Inland Revenue Department Revenue Department (IRD).
A person can change their registration information recorded for filing Income Tax Return in three (3) possible ways.
A person will have to take relevant documents to Tax Office in order to successfully change details regarding Income Tax Registration.
The Active Taxpayer List (ATL) is a central record of online Income Tax Return filers for the previous Tax Year.
ATL is published every financial year on the 1st March and is valid up to the last day of February of the next financial year. For example, Active Taxpayer List for Tax year 2021 was published on 1st March 2022 and will be valid till 28th February 2023. Similarly, Active Taxpayer List for Tax year 2022 will be published on 1st March 2023 and will be valid till 28th February 2024.
The ATL is updated on every Monday on the Federal Board of Revenue (FBR) website.
Applicable Withholding Tax Rates. Updated up to June 30, 2024
To pay your income tax dues, the person can pay through E-payment.
| Person | Due Dates |
|---|---|
| Individual & Association of Person (AOP) | On or before 30th September |
| Company | On or before 31st December |
| Company having a special tax year | On or before 30th September |
Refund can be only claimed if the person has filed their Income Tax Return electronically. A manual Return does not entitle you to a refund.
The refund amount should be clearly reflected in your Income Tax Return in Iris.
Refund resulting from the Income Tax Return can be claimed by filing a separate application in Iris. To check the status of your application, please visit your relevant Regional Tax Office (RTO).
The refund can also be claimed later on after submitting your Income Tax Return, but within two years from the date of filling of return (date of assessment) or from the date on which the tax was paid, whichever is later.
However, persons filing Tax Return for Tax year after the specified due date will not be entitled to refund during the period the person is not included in ATL and Income Tax authorities will not incur any liability of compensation for delayed refund for the period the person is not appearing in ATL and such period shall not be counted for the purpose of computing additional payment for delayed refund.
Any person dissatisfied with any order passed by a Commissioner/Officer Inland Revenue has the right of appeal.
In case of an Individual, the Individual himself; in case of an Association of Person (AOP), any partner or member of the association; and in case of a Company the principal officer.
In case of a deceased individual, the legal representatives of the deceased; and in case of an individual under legal disability or a nonresident person, his/her/it’s “representative”
In order to make an appeal person has to submit the tax due along with the return of income, on the basis of income declared.
Time limit for filing an appeal before the Commissioner (appeals) is thirty (30) days from the date of receipt of notice of demand relating to an assessment, penalty or any other order.