In Pakistan, individuals and businesses are required to pay income tax if their taxable income exceeds the minimum taxable limit. Here are some of the groups that are eligible for income tax:
- Salaried individuals: Employees who receive a salary from an employer are required to pay income tax on their earnings.
- Businesses: Sole proprietorships, partnerships, and companies are required to pay income tax on their business income.
- Freelancers and consultants: Individuals who provide services as independent contractors are required to pay income tax on their earnings.
- Rent income recipients: Individuals who receive rental income from property are required to pay income tax on their rental income.
- Capital gains tax recipients: Individuals who make a profit from the sale of capital assets, such as stocks, bonds, or property, are required to pay capital gains tax on their profits.
It is important to note that the rules and regulations regarding income tax eligibility in Pakistan may change over time, so it is advisable to check the latest guidance from the Federal Board of Revenue (FBR).
In Pakistan, individuals and businesses are required to pay income tax to the Federal Board of Revenue (FBR). Here’s the procedure for paying income tax in Pakistan:
- Determine tax liability: Calculate the amount of income tax that needs to be paid based on your taxable income and the applicable tax rates.
- Obtain a National Tax Number (NTN): If you do not already have an NTN, you need to obtain one from the FBR.
- Go to the “e-Payments” tab and select the “Create Payment” option.
- Choose the “Income Tax Annual Return” option.
- This will take you to the “Income Tax e-Payment” page.
- To create a payment slip (PSID), follow these steps:
- Select the appropriate tax year
- Enter the amount of tax owed
- Choose your preferred method of payment
- Click the “Create” button at the bottom of the page
- Confirm the e-payment that was created.
- The e-payment slip can then be deposited at a National Bank (NBP) or State Bank (SBP) branch. Choose the nearest city for deposit from the drop-down list.