27/09/2024
In Pakistan 🇵🇰, the following individuals are required to file tax returns �tax:
1. Employees (Salaried Individuals) 👨💼👩💼:
If their annual income exceeds PKR 600,000 💰.
2. Business Owners 🏪:
If their annual income exceeds PKR 400,000 💰.
3. Property Owners 🏠:
If their annual rental income from property exceeds PKR 200,000 💰.
4. Vehicle Owners 🚗:
Individuals who own a vehicle with an engine capacity of 1000cc or more 🚙.
5. Land Owners 🌳:
If they own immovable property valued at more than PKR 5,000,000 💰.
6. Foreign Income Earners 🌍:
If their foreign income exceeds PKR 10,000 💰.
7. Profitable Transaction Makers 📈:
Individuals who have made profits from transactions involving property, shares, or any type of capital gains 🏘️📊.
8. Registered Companies and Firms 🏢:
All companies and registered firms are required to file tax returns regardless of their income 📊.
9. Previous Year's Non-Filers ❌:
If a person was required to file taxes last year but didn't 📅.
2024 Tax Slabs for Employees 📅:
1. Up to PKR 600,000:
No tax 🆓
2. PKR 600,001 – PKR 1,200,000:
2.5% tax on income exceeding PKR 600,000 💸
3. PKR 1,200,001 – PKR 2,400,000:
12.5% tax plus PKR 15,000 on income exceeding PKR 1,200,000 💸
4. PKR 2,400,001 – PKR 3,600,000:
20% tax plus PKR 165,000 on income exceeding PKR 2,400,000 💸
5. PKR 3,600,001 – PKR 6,000,000:
25% tax plus PKR 405,000 on income exceeding PKR 3,600,000 💸
6. PKR 6,000,001 and above:
32.5% tax plus PKR 1,005,000 on income exceeding PKR 6,000,000 💸
If a person's annual income is less than PKR 600,000, they don't have to pay tax. However, according to tax filing rules, such individuals are still required to file tax returns 📝.
If they don't file tax returns, a recent news report suggests that they may face various financial restrictions 🚫, such as:
- Unable to open new bank accounts 🏦
- Travel restrictions ✈️
- Restrictions on buying/selling vehicles and property 🚗🏠
- Additional tax on bank transactions 💳
- Restrictions on investing in mutual funds 📊
There are many benefits to becoming a filer 👍, such as lower tax rates on many government services for those who file their taxes 📊.