Islamabad: Continuing its efforts to compel Pakistanis to file their income tax returns, Federal Board of Revenue (FBR) emphasised the difference between tax deduction and tax filing in a publication.
Misunderstanding about filing returns exists among salaried classes and businessmen, the publication said, then went on to expand that Income Tax Registration and Filing Tax Returns are absolutely different.
The publication further noted that it has been observed that tax deduction is considered as equal to filing of income tax returns by the salaried class. However, filing of income tax returns is mandatory for a salaried person as well as businessmen earning taxable income.
The reduced tax rates that you can enjoy as a filer have been enumerated including lower taxes on cash withdrawal and other banking transaction; sale/purchase of immovable property; on supply of goods and services; on winnings of prize bonds; and, at the time of registration/transfer of automobiles.
