What you need to arrange to prepare and file your annual income tax return for Tax Year 2020

    Detail of sources of income e.g. salary, business, property/rental income, capital gain/sales of land, agricultural income, foreign remittance, inherited receipts/assets, receipts from saving certificates, prize bonds, insurance policies, other investment schemes etc.

2.    Documentary evidences i.e. salary slips (for salaries individuals), financial accounts, bank statements, sales/purchase agreement, bills/invoices, vouchers, copies of cheques, utility bills (electricity, telephone, gas, water, internet) and other supporting documents.

3.    Withholding tax deduction certificates from employer (for salaries persons), buyers/service recipients, banks, cellular companies, internet service providers, housing societies and other withholding agents as is applicable.

4.    Detail of advance income tax (if any) paid during the tax year.

5.    Detail of all business expenses incurred during the tax year i.e. purchases, salaries, utilities, fuel, rent and other admin and operating expenses.

6.    For sales tax registered businesses, copies of sales tax returns and imports bills of entry (if any).

7.    Detail of personal expenses for individuals i.e. utilities expense, school fee, medical, travelling (domestic and international), donation/zakat, property tax, rent, vehicle token tax and other household expenses.

8.    Detail of business and personal assets i.e. plant, machinery, equipment, computers, plot, house, commercial building, agricultural property, jewelry, vehicle, motorcycle, insurance policy, prize bonds, saving certificates etc.

9.    Detail of assets purchased and/or sold during the tax year.

10.    Detail of value of household furniture, personal items (mobile, watch, jewelry etc.) and animals (if any).

11.    Detail of loan receivable or payable.

12.    Other allied and related detail/document with respect to your income and expense.

Please feel free to contact us ,should you need our professional assistance for preparing and filing your tax return for year 2020 or previous years.

PM Imran Khan PACKAGE FOR CONSTRUCTION INDUSTRY, 2020

tax amnesty for construction industry by fbr

In an attempt to re-energize the economy after the outbreak of pandemic COVID-19, the Federal Government has promulgated the Tax Laws (Amendment) Ordinance, 2020 [the Ordinance] on 17 April 2020 with the object of promoting construction and allied industry in the country. This Ordinance is a step in the right direction to deal with the said crisis due to which industries, businesses, offices, services have also been shut down in Pakistan and economic activity is at a stand-still. Under these circumstances, the promulgation of said Ordinance offering tax reliefs to construction sector will serve as double-edged sword by meeting the shortage of houses in the country on one hand and creating employment opportunities for the poor and most vulnerable segments of the population, including the daily wagers in Pakistan. By way of the Ordinance, amendments have been made in the Income Tax Ordinance, 2001 [Ordinance 2001] through insertion of new section 100D and Eleventh Schedule to give effect to income tax matters relating to builders, developers, first purchasers of plots and buildings in new projects and purchaser of plots who intends to construct building.

Check here and read Key insights and implication for Construction industry

Do you want to get Free consultation for the benefits that you can avail? Contact us for detail discussion.

FBR date for filing tax return of year 2018 extended to 09.08.19.

filing your tax returns online consultant

FBR vide its notification dated 02 August 2018 has extended deadline for filing annual income tax return of tax year 2018 (previously fixed for 02.08.19) to 09.08.2019. Ensure filing your return by the new deadline to become a filer and avoid penlty of Rs.10,000 on late filing.

We can assist you in preparing and filing your return and wealth statement in time. Please contact should you need our assistance.

What is GST?

GST literally known as ‘general sales tax’ and in legal terms it refers to ‘sales tax’ which applies on goods and services where every supplier in a supply chain is to pass on burden of GST or sales tax to the buyer. It ends up when goods or services are delivered to ultimate or final consumer.

FBR Date Extended till 30th Novemeber 2018 to Become Filer

This is the best time to become active tax filler to get huge benefits and making your wealth legalise through tax amnesty. As per FBR press release date is further extended to 30 November 2018.

Federal cabinet, on the recommendations of the Finance Minister, has approved extension of closing date of tax amnesty schemes for declaration of foreign assets and domestic income and assets till July 31st, 2018. This has been effected through a Presidential Ordinance.

The deadline for filing amnesty declarations was June 30th, 2018. However, during last week a large number of representations have been received from trade bodies, professional associations and general public for extending the closing date due to short operational period after clearing legal and procedural challenges. The extension was also needed to remove ambiguities through clarifications and explanations required to provide certainty to the general public and to ensure effective implementation of the schemes. In addition, declarants of foreign assets faced problems in the payment of tax on foreign assets and repatriation of liquid assets.

The Finance Minister recommended extension of the cut-off date for availing amnesty schemes as there has been an overwhelming demand and response which is on the rise. The date has been extended by one month to enable general pubic to file declarations for undeclared foreign assets and undeclared domestic assets and income and thereby get their tax affairs in order. It will also help the government in bringing undocumented persons, assets and income into the documented sector. Depending on flows, the schemes have potential to bring in macroeconomic and fiscal stability in the economy.

Tax Amnesty scheme 2018 sees massive response

With days to go before its end, the tax amnesty scheme announced by the Pakistan Muslim League-Nawaz government has seen a surge of interest. According to multiple well-placed sources in the Federal Board of Revenue, so far Rs21 billion has already been raised under it in the form of taxes till June 21.

The tax amount created through the amnesty declaration and deposited in the banks stood at nearly Rs5bn, while the remaining tax amount of Rs16bn has been created in the FBR online system through the submission of challans.

The deadline of the scheme is June 30 which, according to the law, is non-extendable. Pressure is mounting on the government from various sides to extend the deadline.

Rs21bn tax raised thus far; according to law, June 30 deadline can’t be extended

Looking at the numbers of declarations coming in, and those in the pipeline, the sources in the FBR and finance ministry said the total amount of tax paid on assets declared under the scheme could well go as high as Rs100bn, though it was too early to properly calculate this number at this stage.

The details of tax amount created so far were shared with caretaker Finance Minister Dr Shamshad Akhtar on Thursday for approval before sharing it with the media. The minister received the figures, but directed top officials of the FBR not to disclose them to the media at this stage.

It was in this background that FBR spokesperson Dr Muhammad Iqbal at a press conference on Friday did not disclose the tax figure created officially, preferring to say only that the response thus far had been “encouraging”. He went on to claim that its success would help resolve the current account deficit and balance of payment issues. He said the number of beneficiaries of the scheme was increasing every day, and categorically stated that the FBR had no power to extend the deadline.

The scheme became effective from April 10 and expires on June 30. It allows people to voluntarily declare domestic as well as foreign assets that had till April 10 been held beyond the tax authorities’ knowledge and reach. It offers varying rates that will be charged on these assets, ranging from 2 to 5 per cent, depending on whether it is a domestic or foreign asset, the asset class, and whether or not it is being repatriated to the country or now. This is the fourth in a series of amnesty schemes announced by the PML-N government in five years, and comes at a time when many holders of black money abroad are already very concerned about the OECD tax information treaty that Pakistan has signed which will enable automatic sharing of information with many other countries. That automatic sharing is set to begin on Sept 1 of this year.

The FBR spokesperson said the response from people increased overwhelmingly after remarks from Chief Justice of Pakistan Saqib Nisar that the bureau could pursue the scheme. A Supreme Court bench was hearing the case on the matter at its Lahore registry.

A source in the finance ministry told Dawn that after green signal from the Supreme Court, Finance Minister Shamshad Akhtar held several meetings with top officials of the FBR to energise the scheme.

Several technical flaws were discovered in the scheme meant for declaration of foreign assets which needed clarification and improvement along the way. “We have addressed almost all queries and issues raised by intended people who want to declare their foreign assets,” the FBR source told Dawn. These apprehensions were removed in consultation with chartered accounts that are in direct contact with intended clients.

The FBR spokesperson said that several legal measures were already taken in the last budget to penalise those people who would not avail this scheme. He said it would be difficult for people, especially for those who did not disclose their foreign assets.

In the 1958 amnesty scheme, an amount of Rs1.12bn was recovered from undeclared assets, followed by Rs920m in 1968, Rs1.5bn in 1976, Rs10bn in 2000 and Rs3.16bn in 2008. There are several other schemes which were also offered in 1985, 1991, 1998, 2012 and 2016. However, the FBR did not disclose their revenue recovery or beneficiaries.

Resource:

Originally Published in Dawn, June 23rd, 2018

https://www.dawn.com/news/1415559/amnesty-scheme-sees-massive-response

 

How to file Tax returns in Pakistan 2018

Once you’ve registered, you can send your tax return using HM Revenue and Customs’ (HMRC) free Self Assessment online service.

See this video to Become filer in Pakistan with FBR:

There are different ways to register if you’re:

  • self-employed or a sole trader
  • not self-employed
  • registering a partner or partnership

You can get help filling in your return.

You then have to pay your bill by the deadline.

Using software or paper forms

You can choose to send any Self Assessment return using software or paper forms.

You must use one of these options to send returns:

  • for a partnership
  • for a trust and estate
  • if you get income from a trust
  • if you lived abroad as a non-resident
  • if you’re a Lloyd’s underwriter

ant to be an Active Filer in 2018??  Contact us to become Active tax filer in Pakistan

 

Budget 2018-19 Key Insights[What Tax Relief you can Avail]

Budget 2018-19 announced with some tax relief to common Pakistani people.According to an informal study by Dawn, Pakistani middle class families fall in the monthly income bracket of Rs75,000-180,000. At the lower end of this income band the annual tax liability has been brought to Rs1,000 while at the higher end the tax will be less than half of the year before because of the sharp cut in rates.

Check Key insights of Budget 2018-19 for an Ordinary Paksitani with some Tax reliefs on Declared assets.

The upward salary/pensions revision by 10pc and increasing of the minimum family pension at the lowest rung from Rs4,500 to Rs7,500 will generate political capital for the party in power.

After a detailed exercise Dawn last year identified seven broad categories of family spending with weightage. The new budget has created some fiscal space to add a new category of miscellaneous with 5pc weight. The figure shows how average families are expected to consume money they will save from lower tax liability and increase in their income.

The kitchen budget might increase more than the rate of inflation to improve the quality of intake. Rentals are not expected to increase as real estate measures can bust the property price bubble. Transport and utility cost may increase marginally while additional family resources can provide a buffer to better manage health and education needs of children.


For citizens the litmus test is their personal experience and the perceived impact of budgetary policies on the wellbeing of their families. As the proposed measures translate into a hike in the disposable income of urban households, they will support it


The government had to retract the change in income tax exemption limit. In the recent economic package the limit was raised from Rs0.6 million to Rs1.2m. Dr Miftah, in his budget speech proposed a flat tax of Rs1,000 per annum on income in the band of Rs0.4m to Rs0.8m and Rs2,000 per annum for income brackets of Rs0.8m-Rs1.2m.

Besides the financial cost, if implemented, the earlier proposal would have halved the number of income tax payers that are already shamefully low at 1.4m to 0.7m in a population exceeding 200m.

In comparison to urban dwellers, the rural population was not offered direct benefits in the form of increase in support prices though some measures were announced to moderate the cost of farming by duty cuts on key inputs such as fertiliser and seeds. It is, therefore, difficult to project increment in their monthly income.

“The sense of freedom is valuable for argumentative Pakistanis but for the majority struggling for a decent life the baseline is economic. For people it is probably the quality more than the pace of growth that matters.

A classic example of voters’ behaviour from the region is the 2004 BJP election debacle in India following the party’s high growth glorification through the ‘India Shining’ campaign”, commented an expert.

Some economists dismiss the thrust of the current proposals as ‘expenditure centred’ and ‘populist’ citing weak fundamentals. Mounting twin deficits, piling debt, weakening currency and draw down on reserves pose a risk, they say, to the sustainability of the 13 year high real sector growth.

For citizens, who often find it hard to demystify economic jargon, the litmus test is their personal experience and the perceived impact of budgetary policies on the wellbeing of their families. As the proposed measures translate into a hike in the disposable income of urban families — through direct salary increase, subsidies, price control and cut in income tax — they will support it.

If implemented, the Abbasi government’s budget will be well received by ordinary people, most businessmen, traders, bankers and brokers. Realtors are understandably irked and people associated with the construction industry complain of not getting the attention their sector deserved.

Source: Dawn.com

What Benefits you can get from tax amnesty Scheme?

Tax Amnesty scheme 2018 announced by Govt. of Pakistan can help individuals and AOPs to get huge benefits.You can talk to the Tax expert for free consultation to convert your black money into white money by regulating it under this scheme.

The government’s tax amnesty could relieve fiscal and external pressures on the economy “if successful”, said Moody’s, the premier credit rating agency in a release early on Friday. “The credit-positive scheme is part of the government’s broader tax reform package” the release noted.

 

Assistance in registration of the prospective beneficieries with the tax authorities;

Correct computation of value of the assets to be declared to avail amnesty;

Tax avoidance by availing tax cusions available under the amnesty ordinance;

Filing of incom tax returns of the proposed declarants and getting them in ‘Active Taxpayers List’ to avoid excess payment of tax on business and domestic transactions;

Advising on prospective tax effective investment opportunities.

President Mamnoon Hussain Defended Tax Amnesty Scheme

President Mamnoon Hussain on Monday defended the tax amnesty scheme, saying that it would help prevent money laundering and bring back the foreign assets for the best interest of the nation.

Talking to media persons during his visit to the Directorate General of Immigration and Passports (DGIP), Hussain, who promulgated four ordinances to give effect to the tax amnesty scheme for whitening of local and offshore hidden assets, said similar schemes have been successful in Malaysia and Indonesia.

He rejected the opinion that all wealth stashed abroad by Pakistani nationals was achieved through ill-gotten means. “Most assets are a result of hard-earned money of Pakistanis, and it was not correct to target them across the board,” he added, justifying the incentives given to declare foreign assets and pay nominal tax on them.

On inter-institutional relations, President Mamnoon said every institution should work within its own ambit to avoid such a situation, which could be detrimental to the country’s future. When asked if he would like to play a role in minimising the rift, he said he believed all were mature enough to sort things out on their own in the national interest.

Source: Pakistan Today

He mentioned that the country was headed towards prosperity as projects under the China-Pakistan Economic Corridor (CPEC) gather pace, adding that it requires a joint effort of all stakeholders.

Talking about the upcoming 2018 general elections, the president also said he was hopeful for timely elections.

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