What is Income Tax Return?
Income tax return is a summarized form issued by FBR every year. The form is used to fill all the information relating to
- Income earned during any tax year
- Expenses incurred to earn that income during the year, including personal expenses.
- Taxes paid / deducted during the year.
- Tax to be paid. (if any)
Who is required to file Income Tax Return?
- Every Company
- Every person other company whose annual income exceeds Rs. 400,000 [ Business individuals are required to file return if annual income exceeds Rs. 300,000]
- Any non-profit organization or welfare institution approved by tax authorities
- Any person other than above who
- Has been charged to tax in any preceding two years
- Claims a loss carry forward
- Owns immovable property a land area of 250 sq. yards or more
- Owns flat in areas of municipal limits
- Owns immovable property of 500 sq. yards or flat having covered area of 2000 sq. feet in a rating area.
- Owns a motor vehicle having engine capacity above 1000cc
- Has NTN
- Is the holder of commercial or industrial connection of electricity where the amount of annual bill exceeds Rs 500,000
- Is registered with
- any chamber of commerce and industry or any trade or business association or
- any market committee or professional body
- Pakistan Engineering Council
- Pakistan Medical and Dental Council
- Pakistan Bar Council or Provincial Bar Council
- Institute of Chartered Accountants of Pakistan [ICAP]
- Institute of Cost and Management Accountants of Pakistan [ICMAP]
How Income Tax Return is submitted?
The form can be submitted manually, by visiting FBR offices. Also electronically using FBR electronic portal [In order to use electronic portal ID is required to be obtained].
However in following cases electronic filling is mandatory
- Salaried individual [Where annual income is Rs. 500,000/= or more for Tax Year 2015 every salaried Individual was required to file electronically.
- Business Individuals registered with sales tax department.
- All Companies
- Refund application [Income Tax Return is required to be filed electronic as well]
It is always better to file electronically for many practical reasons
When Income Tax Return is to be submitted?
Date of filling Income Tax returns are
- 31 August [For Salaried Individual – Electronic filling i.e. Income Rs. 500,000/- or more].
- 30 September [For all Individuals, AoP and Company having year end between 1 July to 31 Dec].
- 31 December [For companies having year end between 1 Jan to 30 Jun].
Following is the video tutorial.