Obtaining a National Tax Number (NTN): The National Tax Number is a unique identification number assigned to taxpayers by the Federal Board of Revenue (FBR). It is a requirement for anyone who wants to file an income tax return in Pakistan. To obtain an NTN, individuals can apply online through the FBR portal or visit the nearest tax facilitation center with relevant documents such as CNIC, business registration documents, and bank account information.
Keeping track of all income and expenses: Taxpayers are required to keep a record of all their income and expenses during the tax year. This includes salary, rental income, and profits from business, capital gains, and other sources of income. Additionally, they should also keep track of all expenses such as rent, utilities, transportation, and any tax deductions.
Filing a tax return: Taxpayers can file their tax return online or manually on a prescribed form (Income Tax Return). The FBR has made it easier for taxpayers to file their returns by introducing online filing through the Iris portal. However, for manual filing, the form can be downloaded from the FBR website, filled out, and submitted to the nearest tax facilitation center. The deadline for filing tax returns is usually September 30, but it may be extended in certain circumstances.
Paying any taxes owed: After filing a tax return, the taxpayer may owe additional taxes to the government. This amount can be paid online through the FBR portal or by visiting a bank authorized to collect taxes. Taxpayers should ensure that they pay the correct amount of tax as failure to do so can result in penalties and interest charges.
Attaching relevant documents: Along with the tax return, taxpayers may be required to attach relevant documents such as salary slips, bank statements, and proof of tax deductions. These documents help the FBR in verifying the information provided in the tax return.
Assessment notice or tax bill: After submission of the return, the FBR will issue an assessment notice or tax bill indicating any additional tax due or any refund due. Taxpayers should carefully review this notice to ensure that it is accurate and contact the FBR in case of any discrepancies.
In conclusion, the income tax filing process in Pakistan can be complex and time-consuming. Taxpayers should seek the help of a tax professional or use tax software to ensure accuracy and compliance with the tax laws of Pakistan.