How to Become an Active Tax Filer in Pakistan

According to the Income Tax Ordinance, 2001, all the people who come under the prescribed category are liable to file income tax return in Pakistan and become active tax filers. Therefore, understanding income tax return filing and becoming an active tax filer is highly important for each and every taxpayer if he is e-filing his income tax return or is manually submitting it. There is a penalty in case of not filing an income tax return in Pakistan when its due date has arrived, in spite of having clear knowledge on income tax return.

The government of Pakistan has categorized the taxpayers into two broad categories of ‘filers’ and ‘non-filers’ of tax. This translates into the fact that those people who file their tax along with all the essential requirements of the FBR, you are a tax filer otherwise you become a non-filer automatically.

There are two ways to file income tax returns in Pakistan. The first one is manually submitting it and the second one is e-filing.

Manual Filing Procedure:

1. Download the Income Tax Form from FBR’s website.
2. Fill out the information on the form which includes personal information, Source of Income, Personal/Business Expenses, Taxes and Deductions and other such information for Income Tax Return and Assets, Liabilities with adjustment with the Wealth Statement during the relevant Tax Year.
3. Sign the forms and submit them in the relevant department. Keep a copy of all the forms with you.

E-filing or Online Filing Procedure:

1. Each taxpayer has his/her valid NTN number.
2. Taxpayers register their details with FBR and login onto the IRIS portal.
3. After the registration is done with FBR, the taxpayer has access to the system for filing his income tax return.
4. The taxpayer fills out all the information required by FBR and submits his Income Tax Return and Wealth Statement.

Documents Required for Filing Income Tax Return and Becoming an Active Tax Filer in Pakistan:

1. Personal Information
2. Sources of Income
3. For Salary Individuals:

• Annual withholding salary certificate
• Details about any advance tax paid via mobile phone, vehicle token, internet, children school fee etc.
• Details of any other income
• Details of assets/liabilities as on 30^th June, 2020
• Bank closing balance on 30^th June, 2020
• Details of personal expenses

1. For Business Individuals:

• Profit and loss of the year
• Bank statements from 1^st July, 2019 to 30^th June, 2020
• Business expenses and liabilities
• Details of assets as on 30^th June, 2020
• Details of personal expenses
• Details about advance tax paid during the year

1. Other Income and Losses
2. Wealth Statement

Active Tax Filer List in Pakistan:

Once the Income Tax Return is submitted along with the wealth statement, the taxpayer becomes an active tax filer, when FBR updates its records every Sunday night. The Active Taxpayer Status checked by visiting the FBR Website or sending a message on 9966 by writing ATL Space CNIC for example Type (ATL 35202 XXXXXXX1) in the message.

You are now an active tax filer. Let ZAF Consultants help you in filing your income tax return. The last date is 30^th September 2020. Visit our website for more information.