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Filer and Non Filer | Tax Filer’s Benefits
Filers and non-filers in Pakistan and tax benefits for filers in Pakistan. Why should I become a Filer? Who is an income tax filer? Who is a non-filer? What does it mean to be a tax filer in Pakistan? Who in Pakistan is called a non-filer? Why would you avoid being a non-filer?
There is a big difference between a filer and a non-filer in the eyes of the law. I have to answer many questions from clients, such as: what is income tax filer and non-filer in Pakistan? What is an income tax filer in Pakistan? What is the process to become a tax filer in Pakistan? Why become a declarant? How can one benefit from becoming a registrant? If we don’t file, what are the consequences? What is the tax system in Pakistan and how does it work? The purpose of this article is to answer all the detailed questions they asked and provide information for the general public.
With today’s technology, becoming a registrant is not as difficult as it used to be. In order to simplify the filing of tax returns, the FBR has put in place a number of programs and services. In order to get your name in the ATL or file an annual tax return, a national tax number is required. You can register the NTN online at https://iris.fbr.gov.pk without going to a tax office.
What do the terms “income tax filer and non filer” mean in Pakistan?
Under the Income Tax Ordinance 2001, the FBR introduced a two-tier withholding tax for non-filers with a double withholding rate to differentiate between filers and non-filers in Pakistan.
What is the difference between a filer and a non-filer?
What is the difference between a filer and a non-filer? To increase tax revenue, the Pakistani government differentiates between categories of taxpayers and non-taxpayers. In addition, the tax law penalized non-filers with a higher tax to penalize them for not filing their taxes. Non-filers are subject to increased taxes each year to force them to file a return.
Who is an income tax filer?
Taxpayers are those individuals listed on the “Active Taxpayers” list compiled by the IRS. Every taxpayer must submit their annual tax return through FBR’s IRIS online portal (https://iris.fbr.gov.pk/public/txplogin.xhtml) to appear on the list of Active Taxpayers (known as ATL).
Who is a non-filer?
A non-filer is a taxpayer who is not registered with the Federal Revenue Bureau (FBR) nor does he have a valid NTN, or whatever the case may be if he is registered with the FBR and has a valid NTN, as well as a tax return on the rent. , but does not file annual tax returns.
What does it mean to be a tax filer in Pakistan?
The IRS reports filers as taxpayers appearing on its “Active Taxpayers” list. To appear on this list, taxpayers must submit their annual tax returns through FBR’s IRIS online portal. FBR considers them filers because they file tax returns annually.
Who in Pakistan is called a non-filer?
A non-filer is an individual who has not registered with the FBR and therefore does not have an NTN number or has an NTN number but does not pay their income tax and does not file their annual income tax return. rent. The FBR also refers to them as non-filers because they did not file tax returns.
Why should I become a filer?
I want to let you know how becoming a filer benefits you. The benefits of becoming a contributor include the following. Some of them are the following:
- Taxpayers can buy property without restrictions.
- There is a lower tax rate on prize bonuses earned.
- Tax withholding deductions are generally reduced by 50% for taxpayers.
- The importation and purchase of vehicles is not restricted to declarants.
- In taxpayers, taxes on dividends are lower.
Disadvantages of non-filers
There are many disadvantages to not declaring, as I mentioned above. Some of them are listed below:
Non-filers will no longer be able to purchase or import motor vehicles under the 2018 Finance Bill, and local automakers have already implemented the ban.
The purchase of a property worth more than Rs 1 lakh is prohibited for non-filers.
Tax withholdings are higher for non-filers.
Tax rates on award bonds are higher for non-filers.
Dividends received by non-filers are taxed at a higher rate.
Due to token taxes, vehicle registration fees are higher for non-taxpayers.
To summarize the above discussion, I would like to tell you that a person who earns a salary above Rs. 600,000 or a company earning a net profit of more than Rs. 400,000 must be registered with the FBR and submit the annual income tax return every year, on or before September 30.