Filer | Filer and Non Filer | Income Tax Filer | Income Tax Filer's Benefits in Pakistan
FILER: A Filer is a Person who Files an Income Tax Return
NON FILER: A Non Filer, doesn't File Tax Return
Filer, Filer and Non Filer, Income Tax Filer and Filer’s benefits. These topics are discussed in this article. A Filer files his/her income tax return annually, and a non filer is who doesn’t.
Filer means an Income Tax Filer in Pakistan.
A filer is a person who files an income tax return.
A non-filer is a person who does not file an income tax return.
Filer and Non Filer: FBR Offers Benefits For Filers and Non Filers are Not Eligible For Certain Benefits
Tax Filer's Benefits-Filer and Non Filer
Income Tax Filer vs. Non Filer
Tax filer benefits are numerous in Pakistan, which is explained in this article and also difference between a filer and non filer. Filer means a person or business filing income tax return regularly and his name is appearing in the ATL (Active Taxpayer List).
Filer Meaning in Pakistan
In the World, a Filer means a person who files some application, documents or petition in the court of Law are to some Government Departments. But in Pakistan, the world ‘Filer’ referred to an income tax or Sales tax filer. A filer is an individual listed on the “Active Taxpayer” list compiled by the FBR. To appear on FBR’s Active Taxpayer’s list (also known as ATL), Taxpayers must submit their annual income tax return on the FBR’s online portal IRIS (https://iris.fbr.gov.pk/public/txplogin.xhtml).
You are a filer if you have filed your income tax return for the recent year. The FBR maintains and shares with the public the Active Tax-Payer List (ATL).
Online Income Tax Filer's Status Check
You can check your status of being an income tax filer or non-filer by providing your NTN (National Tax Number) on the FBR website https://e.fbr.gov.pk/esbn/Verification.
For further information regarding your filer status, you can visit our Office or Website.
Entitlement of Income Tax Filer's Benefits
The income tax filer has an entitlement of several 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.
Tax Rates For Income Tax Filers and Non Filers are Different
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 being a filer of the income tax return.
Another Benefit of Being an Income Tax Filer
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 Income Tax Filer's Benefits in Pakistan
There are several other Filer’s benefits in Pakistan, which are defined below:
• Income Tax Filers also get benefits on import business. 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.
• 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.
• 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% of 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 to Pakistan.
KEY POINTS OF INCOME TAX FILER'S BENEFITS
(NON FILERS ARE NOT ELIGIBLE FOR THESE BENEFITS)
Do you want to begin submitting income tax returns from this TAX YEAR 2021? Do it properly in a way. Income Tax-Filer 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-filer 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-filer 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 filer 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.
- Most of all, an income tax filer is considered a responsible and respectable citizen in the whole world.
Filing Your Taxes is Important-It Entitles You to Certain Benefits
Filing your taxes is important because it helps you pay your due share of income tax, which in turn helps fund projects that benefit the public at large. When you file your taxes, you are contributing to the development of Pakistan as a whole. Besides, filing your taxes also entitles you to certain benefits, such as:
– You can claim Education cess on your taxable income.
– You can claim Income Tax Rebate if your taxable income is below Rs. 40000 per annum or if your taxable income is above Rs. 40000 per annum but less than Rs. 80000 per annum and if you have paid at least Rs. 2 lac in tax on this income during the preceding year; or if you have paid Rs. 4 lac in tax on this income during the preceding year; or if you have paid at least Rs. 8 lac
Filer and Non-filer, who is a Filer?
If you are one of those taxpayers who have to file an income tax return for the year 2020-21, then you are a “filer”, meaning you have to file your tax return on time. If you have not filed your income tax return for the year 2020-21, then you are a “non-filer”.
Are there any benefits of filing my income tax return on time?
Yes! There are several benefits of filing your income tax return on time. For example: 1) you can claim various deductions under Section 80C & 80D, 2) you can claim deduction under Section 80TTA 3) You can claim exemption from wealth tax (if applicable), 4) You can also claim deduction under Section 80G etc.
The Core benefits of being an income tax filer are:
1) You can save your money from taxes.
2) You can get loan easily from banks, because your credit score (CDS) will increase, and you will have good reputation in front of bank managers.
Filer or non-filer, it’s important to know what you are and what you’re entitled to.
In Pakistan, being a filer is a big deal. It means that you have to file your income tax return regularly with the Federal Board of Revenue (FBR). In this article, we’ll tell you what it means to be an income tax filer in Pakistan, as well as the benefits that come with it.
What does being an income tax filer mean?
If you are an income tax filer, then you need to pay taxes on your income each year. You can do this by filing a return online or in person at the FBR offices in your area. This is called paying through self-assessment.
You should also keep track of all your business expenses and other deductions so that they can be included on your annual return—this makes it easier for you to calculate how much money you owe the government! If you don’t do this, then there will be more work involved when filing next year’s return because they won’t know exactly how much they should take away from your monthly salary payments—and then there would be no room left over for savings!
A filer is a person who has filed his income tax return with the Federal Board of Revenue (FBR). A non-filer is a person who has not filed his income tax return.
Now, we hope that your mind is clear about the concept of filer, non filer, tax filer, income tax filer, filer benefits, etc.
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If you have not, yet, filed your income tax return, you can call us and send your necessary data and documents to let our tax lawyers, file your income tax return for the year 2020-2021.
Provincial Tax Authorities
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