Salaried Taxpayers in Pakistan – Tax Year 2018

Salaried Taxpayers in Pakistan – Tax Year 2018

What need to be done if you are a Salaried Taxpayer in Pakistan?

First thing first, the Salaried Taxpayers in Pakistan are required to file Income Tax Return on or before 31st August 2018 along with Tax return u/s 114 they are also required to file Wealth Statement for the tax year.

A return of income under section 114, a statement required under sub-section (4)of section 115 or a wealth statement under section 116 shall be furnished in the prescribed manner and the last date for such tax return filing will be 31st August 2018.

Income from Salary (Salaried Taxpayers in Pakistan)

  • Pay, Wages or Other Remuneration (including Arrears of Salary)
  • Allowances (including Flying / Submarine Allowance)
  • Expenditure Reimbursement
  • Value of Perquisites (including Transport Monetization for Civil Servants)
  • Profits in Lieu of or in Addition to Pay, Wages or Other Remuneration (including Employment Termination Benefits)

Adjustment of Tax deducted

  • Taxes paid/ deducted are adjustable on the tax liability after tax computation, tax deduction can be on
  • Tax deducted on salary income
  • Tax deducted on Cash Withdrawal from Bank
  • Private Vehicle Tax
  • Tax deducted on Electricity Bill
  • Tax deducted on Telephone, Cellphone, internet and Others

Tax Reductions

  • Tax reductions for the following can also be claimed:
  • Tax Reduction for Full Time Teacher / Researcher
  • Tax Reduction for Senior Taxpayer
  • Tax Reduction for Disabled Taxpayer

Salaried Taxpayers in Pakistan (What need to be done if you are a Salaried Taxpayer?)

Statement of Assets / Liabilities – Wealth Statement

A wealth statement shall be furnished by the due date for furnishing the return of income for tax year or on the date required by notice. Wealth statement comprises of 3 sections: –

  • Personal Expenses
  • Personal Assets/ Liabilities
  • Reconciliation of Net Assets

Personal Expenses

In this section you have to provide detail of personal expenses incurred during the tax year for which you are filing you income tax return.

For example Rent, Rates / Taxes / Charge / Cess, Vehicle Running / Maintenance, Travelling, Electricity, Water, Gas, Telephone, Asset Insurance / Security, Medical, Educational, Club, Functions / Gatherings, Donation, Zakat, Annuity, Profit on Debt, Life Insurance Premium, Other Personal / Household Expenses, Contribution in Expenses by Family Members

Personal Assets/ Liabilities

This section requires assets owned by the taxpayer and liabilities at the tax year-end.

Assets comprises of Agricultural Property, Commercial, Industrial, Residential Property (Non-Business), Business Capital, Equipment (Non -Business), Animal (Non-Business), Investment (Non-Business) (Account / Annuity / Bond / Certificate / Debenture / Deposit / Fund / Instrument / Policy / Share / Stock / Unit, etc.), Debt (Non-Business) (Advance / Debt / Deposit / Prepayment / Receivable / Security), Motor Vehicle (Non-Business), Precious Possession, Household Effect, Personal Item, Insurance Premium, Cash (Non-Business), Any Other Asset, Assets in Others’ Name, Total Assets inside Pakistan, Assets held outside Pakistan and any liabilities.

Reconciliation of Net Assets

A statement of Reconciliation of Net Assets is also required to be prepared showing increase/ decrease in assets of the taxpayer and the difference between opening net assets with closing assets is calculated in a given format.

We are providing Tax Return Filing Services for our clients for more than 10 years. We believe that our responsibility doesn’t end at Return Filing Stage but we also guide/ give advice on how to move forward on ever changing tax laws and regulations and pursue the tax proceedings process before all Income tax authorities.

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