Advantages of Filing an Income Tax Return
More than half of Pakistan’s population is made up of salaried workers and entrepreneurs. The country’s tax-to-GDP ratio is frighteningly low, despite the fact that it is home to millions of working and business people. So, why aren’t all of these citizens paying their taxes? The most major factor contributing to the tax gap is a lack of awareness. There are numerous advantages to filing taxes that the majority of Pakistan’s self-employed and salaried individuals are unaware of.
In Pakistan, funds collected from taxpayers are one of the most significant pieces of revenue for the government. The government of Pakistan and the Federal Board of Revenue (FBR) are working together to bring more people into the tax net by imposing penalties on non-filers of tax returns and providing benefits to tax filers in Pakistan. The most prominent perks one can enjoy by becoming an Active are as follows:
Benefits to Active Filer List
In comparison to individuals who do not file, income tax filers are entitled to a number of incentives from the Pakistani government. In many circumstances, you can get authorization to file and cut your taxes by completing an annual tax return.
Capital gains on the selling of securities have a lower withholding tax rate.
Taxes on dividends will be reduced.
Prize bond winners are subject to a lower rate of withholding tax.
Allows you to reclaim tax that was incorrectly withheld.