In order to promote the culture of filing tax returns increased/ higher Withholding Tax (WHT) rates have been introduced for Non-Filers. On banking transaction, sale and purchase of vehicles & property and other many transactions higher WHT . Even on annual token taxes of vehicles additional tax is charged on vehicles owned by non filers. In the prevailing situation people are so curious and to now How to Become Tax Filer in Pakistan
Step: 1 NTN Registration
First step to become filer is getting National Tax Number (NTN).If you don’t have National Tax Number (NTN) , firs apply for NTN registration and get your NTN.
To apply NTN see the below link
Step: 2 Make Estimate of Your Income
If you are Salaried Person its quite easy you employer issue a certificate of Tax Collected and Deducted on specified format , describing total amount of salary and the tax deducted by the employer.
If you are a businessman make estimate of sales and expenses to determine the profit.
Step: 3 Collect Certificate of Collection and Deduction of Tax
All withholding tax payable on banking transactions, mobile cards or recharge, PTCL bills ,sale and purchase of vehicles & property and other many transactions are adjustable. Request Certificate of Collection and Deduction of Tax from your bank, mobile phone company, PTCL offices. Amount of WHT deducted on various transaction mentioned on receipt , for instance token tax receipt issued by Excise and Taxation Office specifies the amount of WHT. Sum up the total amount of tax.
Step: 4 Make Estimate of Your Assets
Make a fair estimate of all assets , whether inherited ,gifted or purchased from own resources ,on last day of tax year. For tax year 2016 this will be June 30,2016. Assets include cars, plots, houses, apartments, household items, ornaments/ jewellery, personal items , prize bonds , foreign currency , cash in hand and bank balances. Please note all asset will be taken at the value of purchase or at the time of transfer or when gifted.
Step: 5 Make Estimate of Your Personal Expense
Not 100% accurate estimate is required , just make a reasonalble estimate of personal expenses under the following head
Vehicle Running and Mainteance Expense
Functions / Weddings
Other Household Expense
Step: 6 Wealth Reconciliation
Reconcile your current income/profit or other receipts, e.g. foreign remittance, family contribution, inheritance, gift money / value, against your personal expenses and decrease/increase in wealth during the tax year.
Copyright KK OLY Consultant How to Become Tax Filer