Income Tax Return
Income Tax Returns: Income tax returns are filed by individuals, businesses, and other entities to report their income and calculate the tax liability owed to the government. Here’s a breakdown of the income tax return process.
Preparation of Documentation: Taxpayers gather relevant financial documents, including salary slips, bank statements, investment records, property documents, and business income statements, to assess their total income for the tax year.
Completion of Tax Return Form: Using the prescribed income tax return form issued by the FBR, taxpayers fill in their income details, deductions, exemptions, and tax credits. The form varies depending on the taxpayer’s category, such as individuals, salaried individuals, companies, or associations of persons.
Calculation of Tax Liability: Based on the information provided in the tax return form, taxpayers calculate their total taxable income and apply the applicable tax rates to determine the tax liability for the tax year.
Filing of Tax Return: Taxpayers submit their completed income tax return forms electronically through the FBR’s online portal or manually at designated tax offices. The deadline for filing income tax returns varies each year but is typically around September/October following the end of the tax year.
Sales Tax Return
Sales Tax Returns: Sales tax returns are filed by businesses registered for sales tax purposes to report their sales and calculate the sales tax liability payable to the government. Here’s an overview of the sales tax return process.
Collection of Sales Data: Registered businesses maintain records of their sales transactions, including invoices, receipts, and sales registers, to determine the total taxable sales made during the tax period
Completion of Sales Tax Return: Using the prescribed sales tax return form
provided by the FBR, businesses enter their sales data, including taxable sales, exempt sales, and zero-rated sales. They also calculate the sales tax liability based on the applicable tax rate
Submission of Sales Tax Return: Businesses submit their completed sales tax return forms electronically through the FBR’s online portal or manually at
designated tax offices. The deadline for filing sales tax returns is typically the
15th of the following month.
Company / Firm/ Corporate Tax Return
Corporate Tax Returns: Corporate tax returns are filed by companies registered under the Companies Act to report their corporate earnings and calculate the income tax liability owed to the government. Here’s a summary of the corporate tax return process.
Financial Statement Preparation: Companies prepare financial statements,
including the income statement, balance sheet, and cash flow statement, to
assess their taxable income for the financial year.
Completion of Tax Return Form: Using the prescribed corporate tax return form issued by the FBR, companies disclose their financial information, including revenue, expenses, profits, and tax adjustments.
Tax Calculation: Companies calculate their taxable income by applying the
corporate tax rate to their net profits after adjusting for allowable deductions,
exemptions, and tax credits
Filing of Tax Return: Companies file their corporate tax returns electronically
through the FBR’s online portal or manually at designated tax offices. The
deadline for filing corporate tax returns is typically within a specified period
after the end of the financial year.