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.

FBR deadline to file annual income tax return for the tax year 2019 extended till 31.12.2019

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FBR has extended the deadline to file return for year 2020 till end of this year due to covid-19 situation. Now you can add your name in Active tax payers list by paying 1000 Rs surcharge fee and avail the benefits as tax payer.

TAX PERIOD FOR INCOME TAX RETURN

Income Tax Return relates to a specific tax year. A tax year 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 2017, covers a period from 1st July 2016 to 30th June 2017.

Tax year includes special tax year, which 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, 2016 to December 31, 2016 shall be denoted by calendar year 2017 and the period of twelve months from October 01, 2016 to September 30, 2017 shall be denoted by calendar year 2018.

GET INCLUSION IN ATL

A person’s name will be part of the current ATL, if the Tax Return filed pertains to the Tax year of the relevant ATL. For example, to be part of the ATL published on 1st March 2019, a person must have filed a Tax return for the Tax year 2018. Similarly, to be a part of the ATL published on 1st March 2020, a person must have filed a Tax Return for the Tax year 2019.

As a Reputed Tax consultation Firm, we can help you add your name in ATL by nominal fee of 2000 Rs as salary individual. For organizations and companies you can contact us for free consultation.

Know everything about Budget 2020-21 for Business and Common people

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Finance Bill 2020-21 (“The Bill”) for the fiscal year 2020-21 was laid before National Assembly on 12th June 2020. The bill has proposed amendments in Income Tax Ordinance, 2001 (“ITO”), Sales Tax Act, 1990 (“STA”), Federal Excise Act, 2005 (“FEA”) among other laws. We have prepared our comments on significant amendments proposed in ITO, STA & FEA. The comments presented are brief and detailed comments will follow after passage of the bill in the National Assembly along with passage of Provincial Finance Bills in respective Provincial Assemblies. Our comments are based on publicly available copies of the Finance Bill. The interpretations of the amendments are based on our understanding of tax law and past practices. These comments are provided for general use of public and should not be used for any specific transaction. We do not guarantee that these interpretations will be acceptable by the tax department.

Budget 2020-21: Everything you need to know

The comments are prepared for general business understanding of masses.

In case of any technical query, kindly contact us. Please feel free to provide your feedback for further improvements in the document.

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.

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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.

What is VAT in Pakistan?

VAT stands for value added tax as is universally accepted in all tax abiding countries. This levy is indirect in nature as burden of this levy is ultimately rooted to the end consumers. The description ‘value added tax’ is taken due to the reason that every supplier and/or service provider in a supply chain is required to impose this levy on the goods he supplies or service he provides so as to collect tax at a certain proportion of value which he adds to the goods or service he supplies.

This is also referred as ‘sales tax’, ‘GST’, ‘Indirect tax’ and ‘ service tax’.

GST rate on supplies of goods in Pakistan

The standard rate of GST or sales tax in Pakistan is 17% ad-velorem on imports and supplies of goods all over Pakistan with the exception of few supplies which are charged to tax at reduced rate ranging 5% to 10% and few other supplies subject to extra and fixed rate of sales tax depending upon their features and/or values e.g. confectioners and cell phones etc.

Supplies referred in 6th schedule of the Sales Tax Act, 1990 (1990 Act) and those declared as such through issuance of notification by the Federal government are exempt from sales tax.

Exports of goods from Pakistan to abroad including supplies of goods referred in the 5th Schedule to the 1990 Act and those declared as such through issuance of notification by the federal government are chargeable to sales tax at the rate of 0%.

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.