With the World’s fifth largest population and probably the World’s lowest number of taxpayers, only 1% of the population is registered for tax. Pakistan has, therefore, great potential in increasing its revenue through tax collection.
Before we discuss about benefits of being a filer we should know that there are many benefits of filing income tax returns whether salaried individuals or businesses most of the salaried persons don’t know much and seems to be afraid in filing income tax return, whereas for salaried person tax is deducted at source by their respective employers and they are paid salary net of taxes.
Salaried individuals whose tax is deducted at source do not automatically assume the filer status as for that they have to file a tax return to become a filer. Majority of salaried individuals are not aware of this resultantly don’t file income tax returns which makes them non-filers and they end up paying excessive taxes.
Under Income tax Ordinance 2001,and finance act 2019 all citizens, individuals with an annual income of Rs. 600,000 and above are required to file their tax returns annually.
Once you have filed your return before the deadline announced by the FBR – Federal Bureau of Revenue, your name will be added in Active Payers List, commonly known as the Active Taxpayer List (ATL), that allows you to avail the benefits of paying lower taxes on sale or purchase of vehicle and property, and zero tax on bank transactions