Income Tax Rate

If you’re earning 400,000/- PKR or more in a year, then you’re subject to income tax. The government determines the tax rate that applies to your earnings each year, and in this regard, a tax slab is made so as to classify each taxpayer based on their annual earnings.

Wealth Reconciliation Statement

If your yearly salary is PKR 600,000 or more, you're required to file an income tax return through IRIS (an online software/system for e-filing). With tax return filing comes the need to also submit your wealth reconciliation statement.

Income Tax Rate

What is a Wealth Statement?

As required by law, businesses and individuals must submit a statement of their income, profit, loss, and expenses in one form. This is known as a Wealth Statement. If you want to reconcile your last year's wealth with this year's wealth statement, here is a basic technique for doing so: First, list out all the items that fall under each category. Then, calculate the totals for each category. Next, compare the totals from last year to this year's totals. Finally, make any adjustments that are necessary.

Wealth

Wealth (last year): PKR 1500 Wealth (current year): PKR 2000 Increase/Decrease in wealth: PKR 500 (call it ‘A’) PKR 500 is what we call ‘A’, which is the increase or decrease in your wealth from last year to this year.

Income Sources

Welcome to our income calculator!

To get started, please enter your salary income in Pakistani Rupees: PKR 500

Next, please enter any rental income you may have: PKR 900

Now, please enter any business income you may have: PKR 200

Finally, please enter any foreign remittances you may have: PKR 100

Your total sources of income are: PKR 1700 (we'll call this "B").

Now, deduct the following from your income:

-Personal expenses: PKR 500

-Other expenses (e.g. marriage of sister/son): PKR 500

-Random taxes paid: PKR 200

This totals your expenses at PKR 1200 (we'll call this 'C').

Income sources (B) minus expenditures (C) should equal PKR 500. So, in this example, your income sources (B) would need to be greater than your expenses by at least PKR 500 in order for you to have a positive balance.

Supportive Documents Required for Filing Tax return

This is a list of the documents that you will need in order to apply for your salary certificate and tax deduction certificate from your employer.

- Your CNIC (original and photocopy)

- Your email ID

- Your bank account statement from 01st July 2020 till 30th June 2021

- A list of your personal assets along with their value of purchase/acquisition

- A utility bill in your name (if applicable)

If you do not have an NTN number and are not registered with FBR, we can help you register and get an NTN number issued so you can file your tax returns. Normally, it takes 1-2 days to get an NTN number, but to become an active filer with FBR can take 2-3 days. So, if you're not an active filer, hurry up and register.

If you have any more questions about getting an NTN number or filing tax returns, please let us know. We're here to help!

Lahore Office

Main Boulevard Gulberg, Main Market, Lahore, Punjab 54000
Mr. Ahmed Burhan

Faisalabad Office

Burhan Center, 97-99, Gulistan Market Railway Road, Faislabad, Pakistan
Mr. Ahmed Burhan

UK Office

Associate Office (London)
Mr. Ahmed Burhan

Income Tax Rate

Wealth Reconciliation Statement

Income Tax Rate

What is a Wealth Statement?

Wealth

Income Sources

Now, deduct the following from your income:

Supportive Documents Required for Filing Tax return

Lahore Office

Faisalabad Office

UK Office

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