Benefits/advantages of Being an Income Tax Filer in Pakistan For the Tax Year 2021-2022

Benefits of Income Tax Return Filing For the Tax Year 2021?

The income tax in Pakistan is applicable on all income earning individuals, firms, and companies. This income can be in any form including salary, income from any business, income earned through the property, and income from any other sources like profits on investments and savings. The amount of income tax is determined by the government tax body known as the Federal Board of Revenue (FBR). The individuals and companies who are liable to pay the income tax have to file an Income Tax Return in Pakistan annually. In order to file your income tax return for the Tax Year 2021, you need to make sure that you’ve your NTN (National Tax Number. You can call now at 0331-6644789 and get a FREE NTN registration within an hour.

By filing the income tax return 2021, you will become an Income Tax Filer. The FBR maintains and shares with the public the Active Tax-Payer List (ATL). Later on, you can check your status of being an income tax filer or non-filer by providing your NTN (National Tax Nnumber) on the FBR website.

For further information regarding income tax filing, you can visit income tax.

What are the Benefits of Income Tax Return Filing For the Tax Year 2021?

The income tax filer is entitled to many benefits over non-filers by the Government of Pakistan. By filing an annual income tax return, you can enjoy the perks of being an income tax filer and get your tax reduced in many cases. Hence, there are many benefits of becoming a filer in Pakistan.

The tax rates for income tax filers and non-filers are different. In case you are purchasing an immovable property like a plot or a house or you are planning to buy a vehicle, then you have to pay the double amount of tax if you are a non-filer of the income tax return. For example, while purchasing a property worth 9 million, a non-filer will pay the tax of Rs.180,000, however, an income tax filer’s tax would be reduced by 50% i.e. he has to pay the income tax of Rs.90,000 only. This is a great benefit of filing an income tax return.

Another benefit of being an income tax filer is that you can adjust the taxes which you have already paid on the purchase of immovable properties and vehicles. Even those, who are exempted from the income tax like non-resident Pakistanis can also claim a refund of the income tax which they have paid on the purchase of motor vehicles and property. The non-filers of income tax returns, can not avail this golden opportunity of income tax adjustments. In this way, there is another difference between an income tax filer and a non-filer tax rate in Pakistan.

We understand that by now you have already decided to become an income tax filer. But please wait, we would like to share with you a few more exciting offers and perks of being an income tax filer in Pakistan.

Other Benefits For Income Tax Filers in Pakistan in the Tax Year 2021:

• Non-filers of income tax returns will pay double of the withholding tax as compared to the income tax liability on the Income Tax Filers.
• People who are the regular income tax filers can purchase a property of any worth without any limit. However, non-filers of Income Tax Return are restricted to own any property valued over PKR 50 lakhs.
• Income Tax Filers get benefits on import business also. In the case of the raw material imports, the Income Tax Filers would pay 5.5% while non-filers of Income Tax Returns are required to pay 8% on the total imports.
• Apart from the imports, there is a tax benefit given to the income tax filers on the exports as well. The income taxpayers are required to pay only 6% duty on the commercial exports whereas the non-filers are liable to pay 9% on the commercial exports.
• A sum of 10% tax is applicable on the dividends (company’s profit) on the tax filers in contrast with the 20% tax levied on the non-filers
• Now, let’s take into account the tax on bank profits and saving schemes. The tax rate of 30% is set for the non-filers, while only 15% on the same is obligatory for the income tax filers.
• Additionally, there is good news for those who like to buy prize bonds. The Income Tax Filers will pay only 15% upon winning prize money against non-filers who will pay 30%.
• As described above, non-filers of income tax returns are liable to pay 2% on the purchase of a property whereas only 1% tax will be paid by the income tax filers.
• In addition, if any government or private entity is auctioning, the income tax filers can avail the opportunity, by paying 10% only but the non-filers will be paying 20% for the same purpose.
After knowing the tax benefits of being an income tax filer in Pakistan, we believe that you would talk to speak to our income tax lawyers and /or consultants in Karachi or specialized tax lawyers in Islamabad /Rawalpindi. We welcome your queries on the subject and are ready to guide you more about other benefits of filing an income tax return in Pakistan.

Income Tax


Do you want to begin submitting income tax returns from this TAX YEAR 2021? Do it properly in a way. Income Tax-payers in Pakistan, experience greater comfort on taxes as in comparison to the non-filers.

So, let’s test the listing of benefits of being an income tax filer in Pakistan.

  • Income Tax-payers are required to pay 1/2 of withholding tax, as compared to the income tax paid by the non-filers.
  • A non-filer of income tax return is barred from proudly owning any assets well worth over PKR 50 lakh while individuals who are income tax return filers, could buy any assets.
  • Income tax Non-filers importers might pay 10% on the full import while taxpayer importers are required to pay 5% on imports.
  • Paying 10% income tax on industrial exports is compulsory for non-filer exporters in Pakistan. On the opposite hand, the income tax-payers are most effective speculated to pay 5% responsibility on their industrial exports.
  • A 20% withholding income tax is payable at the dividends (company’s profit) of non-filers towards the 15% tax charge set for tax filers.
  • A non-filer has to pay 30% tax towards the 15% tax paid via way of means of income tax-payers in Pakistan.
  • Income Tax Filers most effective pay 15% tax upon triumphing prize cash via prize bond in comparison to the 30% tax paid via way of means of the income tax non-filers.
  • People who file income tax returns, pay 1% on purchase in comparison to 2% income tax paid by the non-filers of income tax returns.
  • Whether it’s the auctioning by the authorities or any other non-public entity, income tax filers pay only 10%income tax towards 20% tax paid by the non-filers of income tax returns in Pakistan.

CALL US NOW for Free Consultation with a TAXOCRATE at Ph. 92 331 66 44 789.

Please make sure that you would send your necessary data and documents to let our tax lawyers, file your income tax return for the year 2020-2021 before the last date for filing the income tax return 2021. Please remember that the last date for filing the income tax return for TY 2021 has been extended by the FBR up to 15th October 2021.