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Who is required to file income tax returns in Pakistan?

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By Matthias Samuel

The Federal Board of Revenue (FBR) has again extended its deadline till August 9, 2019 for filing of income tax returns for tax year 2018.

A lot of people ask that who are liable to file their income tax returns. Basically, all of the government employees or salaried class whose income is above the minimum taxable income, he/she is required to file income tax return.

People liable to file their income tax returns

Back in June 30, 2018, the minimum annual income required to file income tax returns was above Rs 400,000 (4 lac), not just for government servants but also for any salaried person whereas for business income the minimum amount was Rs 600,000 (6 lac).

Besides, those people who are residents (for the purpose of tax) in Pakistan and are registered with Pakistan Engineering Council, Pakistan Medical and Dental Council, Pakistan Bar Council, Chamber of Commerce or Market Committees etc, they are also liable to file their income tax returns under the Income Tax Ordinance Section 114, regardless of the fact that how much they get paid.

Likewise possession of a house or a flat measuring above 250 square yards in an urban area makes the owner liable to file his/her income tax return. Whereas in a rating area (just outside the urban area), the owner of a land or apartment measuring 5000 square yards or above is also required to file his/her income tax return.

In addition to that, any person, who owns a flat having a covered area of 2000 square feet or above, is also required to file his/her income tax return.

In terms of a vehicle’s possession, any person who owns a car of 1000 Cc or above will also be liable.

Apart from the above categories, fresh graduates though they haven’t yet entitled to earn money but are registered with the Pakistan Engineering Council or doctors who are registered with the Medical Council or lawyers who are registered with the Bar Council are required to file the income tax returns as well.

 

Matthias Samuel is a student of history in Quaid-i-Azam University (QAU) Islamabad, and occasionally writes blogs and articles.

Mati
Mati-Ullah is the Online Editor For DND. He is the real man to handle the team around the Country and get news from them and provide to you instantly.

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