Income Tax (Legal Advice) Sub forum

[AZ1]

https://e.fbr.gov.pk/SOP/IRIS/help/index.html

Thank you but that shows how to register in FBR site and where to put value. Usually salary person don't bother for such thing as their company is already doing them on their behalf.

I am talking about let says you have bird business in pakistan. You send birds to Dubai or USA and then bring money back in pakistan in $ through banking channel and then that dollar further converted in rupees.

So will it be called remittance exempt free income or have to pay for it? This was just a scenario example there are lots of out there and trust me when you go to tax lawyer they don't have clue themselves they just want you hire them pay 5,000 to 10,000 in their pocket every year to return the file.

While if same scenario is been face from any of the pdf member of people looking for such whom fbr contacted in such scenario they can share their experience what they did and what fbr person ask from them as documentation etc.

Thanks.

 

[slapshot]

Hi,

Now since FBR is pushing so hard for income tax file and become filer. More and more business person would like to get register for filer but they have lots of question and these questions need to be answered. This forum is good place where even professional visit this forum and provide their input in order to help and advice the situation of the person who would like to file the tax.

I think we should have such sub forum where people can discuss such issue as well.

Thanks,
Best regards.

Hire a tax consultant to get you setup and then in future you can learn and file returns. Its very tricky to get the taxation laws and clause properly and only a professional will be able to provide you with best advice.

 

[Yaseen1]

your above mentioned scenario comes under export if you have followed the regulation of exports and tax laws of exporters will apply on you,otherwise it will be treated as remittance

Thank you but that shows how to register in FBR site and where to put value. Usually salary person don't bother for such thing as their company is already doing them on their behalf.

I am talking about let says you have bird business in pakistan. You send birds to Dubai or USA and then bring money back in pakistan in $ through banking channel and then that dollar further converted in rupees.

So will it be called remittance exempt free income or have to pay for it? This was just a scenario example there are lots of out there and trust me when you go to tax lawyer they don't have clue themselves they just want you hire them pay 5,000 to 10,000 in their pocket every year to return the file.

While if same scenario is been face from any of the pdf member of people looking for such whom fbr contacted in such scenario they can share their experience what they did and what fbr person ask from them as documentation etc.

Thanks.

 

[AZ1]

Hire a tax consultant to get you setup and then in future you can learn and file returns. Its very tricky to get the taxation laws and clause properly and only a professional will be able to provide you with best advice.

That is the reason to have such sub forum. Imagine people are not ready to even register on the fbr how come they will be ready to pay/hire tax consultant and pay him to register themselves and then to pay more to the fbr?.

 

[Sugarcane]

Thank you but that shows how to register in FBR site and where to put value. Usually salary person don't bother for such thing as their company is already doing them on their behalf.

I am talking about let says you have bird business in pakistan. You send birds to Dubai or USA and then bring money back in pakistan in $ through banking channel and then that dollar further converted in rupees.

So will it be called remittance exempt free income or have to pay for it? This was just a scenario example there are lots of out there and trust me when you go to tax lawyer they don't have clue themselves they just want you hire them pay 5,000 to 10,000 in their pocket every year to return the file.

While if same scenario is been face from any of the pdf member of people looking for such whom fbr contacted in such scenario they can share their experience what they did and what fbr person ask from them as documentation etc.

Thanks.

Okay, I got your point. But for your information

1. Companies aren't doing anything for salaried persons except deducting & depositing tax, and reporting to FBR on what basis (i.e. Salary) they deducted tax and how much they deducted. However they are bound to provide proof of salary, tax deduction and deposit to employees for return filing, so even salaried person have to file their return themselves.

2. Tax deducted by companies is not final, companies deduct tax assuming that salary paid them is the only income employee is getting. So, if some salaried person have other source of incomes as well then tax deducted by company will be less than actual. In some cases companies deduct more tax than actual payable as well, in this case the person should get refund from FBR.

3. When you put your incomes in respective places in tax return, it will calculate tax liability based on applicable rate automatically, For individuals and companies as well.

4. You have to put taxes you have already paid i.e. Tax deducted by companies for salaried persons, withholding tax paid on different things etc. and attach the proofs of these tax payments. You see your next tax liability, if it's in positive than you have to pay remaining and attach the receipt, if it's in negative than you can file refund claim.

But yes, Complexity of return filing varies case by case, however for salaried persons it's quite easier and also for those who have single source of income.

BTW - FBR system sucks specially when there's amnesty scheme going on, it's slow, it will keep logging you out every few minutes (although they claim that session time out is 15 minutes but in actual it's quite lower than that) so don't forget to press save after entering information. And lazy people of FBR haven't open return filing for FY 2018-19 yet, maybe after 15 July you will be able to file return for 2018-19.

 

[I.R.A]

And lazy people of FBR haven't open return filing for FY 2018-19 yet, maybe after 15 July you will be able to file return for 2018-19.

Not happening soon, they extended the date for the previous tax year to August 2, 2019.

 

[fatman17]

Not happening soon, they extended the date for the previous tax year to August 2, 2019.

probably in sept

 

[I.R.A]

probably in sept

It keeps getting extended, you may see it getting extended to December 31 as well, if past trend continues.

 

[fatman17]

Okay, I got your point. But for your information

1. Companies aren't doing anything for salaried persons except deducting & depositing tax, and reporting to FBR on what basis (i.e. Salary) they deducted tax and how much they deducted. However they are bound to provide proof of salary, tax deduction and deposit to employees for return filing, so even salaried person have to file their return themselves.

2. Tax deducted by companies is not final, companies deduct tax assuming that salary paid them is the only income employee is getting. So, if some salaried person have other source of incomes as well then tax deducted by company will be less than actual. In some cases companies deduct more tax than actual payable as well, in this case the person should get refund from FBR.

3. When you put your incomes in respective places in tax return, it will calculate tax liability based on applicable rate automatically, For individuals and companies as well.

4. You have to put taxes you have already paid i.e. Tax deducted by companies for salaried persons, withholding tax paid on different things etc. and attach the proofs of these tax payments. You see your next tax liability, if it's in positive than you have to pay remaining and attach the receipt, if it's in negative than you can file refund claim.

But yes, Complexity of return filing varies case by case, however for salaried persons it's quite easier and also for those who have single source of income.

BTW - FBR system sucks specially when there's amnesty scheme going on, it's slow, it will keep logging you out every few minutes (although they claim that session time out is 15 minutes but in actual it's quite lower than that) so don't forget to press save after entering information. And lazy people of FBR haven't open return filing for FY 2018-19 yet, maybe after 15 July you will be able to file return for 2018-19.

system terminology is complicated for non-financial people like me but once you get the hang of it, it becomes easier. a tax friend of mine used to do it for me but since I am retired, I did my own taxes for the first time for last tax year. I see from your post that withholding tax can be claimed as overall total tax paid.

Hi,

Now since FBR is pushing so hard for income tax file and become filer. More and more business person would like to get register for filer but they have lots of question and these questions need to be answered. This forum is good place where even professional visit this forum and provide their input in order to help and advice the situation of the person who would like to file the tax.

I think we should have such sub forum where people can discuss such issue as well.

Thanks,
Best regards.

good idea also to exchange ideas on issues pertaining to filing income tax

i think it is better fbr make youtube video tutorial about how to become filer and use fbr software for becoming filer and how to file a return by showing public with example of dummy new member

its available on utube

It keeps getting extended, you may see it getting extended to December 31 as well, if past trend continues.

true

 

[I.R.A]

I am talking about let says you have bird business in pakistan. You send birds to Dubai or USA and then bring money back in pakistan in $ through banking channel and then that dollar further converted in rupees.

The export side of this business falls under section 154, and tax should have been deducted by the authorised dealer at the time of forex received. That tax (if the person opts to) will be full and final tax (also assuming that birds would fall in category of exporting goods), the only thing tax payer needs to do is obtain a deduction certificate from the authorised dealer and file his income tax return .......

FBR cannot go beyond 5 years ...... its better to start filing last 5 year returns.

 

[Yaseen1]

much better than this forum join this facebook group which is already available for fbr news and discussions and is much open and better media and many people are already its member
https://www.facebook.com/groups/450339129044299/?fref=nf

 

[AZ1]

your above mentioned scenario comes under export if you have followed the regulation of exports and tax laws of exporters will apply on you,otherwise it will be treated as remittance

Remittances are exempted.from income tax? And if so under which law?

 

[Yaseen1]

remittances are generally exempted from tax if done through proper banking channel.For details visit this link
http://www.thebscon.com/taxability-of-foreign-remittances-pakistan/

Remittances are exempted.from income tax? And if so under which law?

 

[I.R.A]

Remittances are exempted.from income tax? And if so under which law?

remittances are generally exempted from tax if done through proper banking channel.For details visit this link
http://www.thebscon.com/taxability-of-foreign-remittances-pakistan/

These kind of remittances are not exempt unless specifically mentioned in law like provision of IT services etc.

 

[AZ1]

These kind of remittances are not exempt unless specifically mentioned in law like provision of IT services etc.

INMMUNITY UNDER SECTION 111 OF THE INCOME TAX ORDINANCE, 2001
If the remittances are through unexplained sources that is are either not supported with proper evidence or the evidence provided does not recnocile the amount remitted it falls under the category of unexplained income and concealment of assets under section 111 of the Income Tax Ordinance, 2001.

In order to avail the immunity or exemption from tax on such unexplained remittances all the foreign source remittances shall be made through banking channel at inter-banking conversion rates or in foreign currency and the Encashment Certificates thereon shall be provided as the proof of the transaction in order to show that the benefit of conversion of foreign exchange has been transferred to the government.


So if we provide PRC.from.bank that these are the remittance will that be sufficient?