Presently, Pakistan is considered among one of those countries having a low tax-to-GDP ratio. With greater Gross Domestic Production (GDP), the revenue of the country will be increased. The Tax-to-GDP rate explains the country's development, and that is why Pakistan is trying to increase its tax bases.
Here, I will discuss the difference between a filer and a non-filer, filing of income tax returns, and advantages for being a filer in FBR.
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The Government of Pakistan changes its citizens into two categories; filer and nonfiler, based on tax-paying. The person on the FBR active taxpayer list is considered registrant, while others who are not on the FBR active taxpayer list are nonfilers.
The FBR active taxpayer list is upgraded every Sunday, and you can download it to check if you are the active taxpayer or not.
According to Pakistan's tax laws, a person or business with an annual income of 4 lacs or above can file for income tax returns. Two methods are used for becoming a filer.
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In this method, you have to download an income tax form from the FBR website. Fill the form with your details, including your source of income, your business, or personal expenses along with your wealth statement throughout the tax year. After completing the form, please submit it to the concerning department and congratulations! You are a filer now.
For online income tax return filing, an individual needs a National Tax Number (NTN) to sign in on IRIS. After registration, a person must complete the requirements of FBR by submitting his/her income tax returns and wealth statement. Different types of documents needed for registration include a tax deduction certificate, any other income (rent, bank), etc.
The Government of Pakistan is relieving its taxpayers by several schemes. These include a less vehicle token tax for filers as compared to nonfilers. 0.3 % withholding tax on every transaction above 50000 from the bank, which is 0.4 % for nonfilers.
A filer gives only a 50 % tax when he/she buys an immovable property. But all you have to do is to file a return to show your income.
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A country needs taxpayer to increase its GDP, to improve the revenue ultimately. If you are earning more than four lacs per year, go to the FBR portal to register. You can experience a lot of incentives given by The Government of Pakistan to its Active Taxpayers.