Government Relief on Income Tax
What income Tax?
An income tax is a tax levied on the income of individuals, or businesses cooperation and other legal entities.
As per the Income Tax rules, any individual especially a salaried person having an annual income above Rs 6 lacs under section-149 should file ITR. Experts advise that even if you have no tax liability, you should file ITR or annual returns on time for enjoying several benefits.
What are sources of income?
- Income from Salary
- Rental Income from House Property
- Income from Business or Freelancing or consultancy
- Income from Capital gains
- Income from Bank Profits
IS IT IMPORTANT FOR EVERY CITIZEN TO PAY TAXES?
Yes, as responsible citizens we need to pay income taxes. Income Tax is one of the biggest sources of income for the Pakistani government. The cost of running an entire country is huge. By our taxes government can run civil operations, basically, without our taxes, it is impossible for the government to run an entire country on its own. It is our duty to pay taxes, if we think paying income taxes is a burden, it would directly affect the growth of our nation and directly lead to social collapse, inflation, and numerous losses.
If we take India as an example, their taxable income starts from 2.5 lacs as compared to Pakistan whose taxable income starts from 6 lacs. We can easily distinguish a huge difference in Taxes. Indian citizens are paying more taxes and their economy is growing rapidly. Anyone can witness their growth as a nation by their success. Their government is established, there are 50 union government schemes in India providing health programs, subsidies on home loans. They are also providing improved health care and educational services. They are growing as a nation by getting enough taxes from citizens and using them to benefits citizens. If we compared Pakistan, then the rate of inflation went up to 10.6 percent in Pakistan in 2019 while it stood at 3.7 percent in India, Till October 2021, the rate of inflation stood at 9.2 percent in Pakistan while it was hovering around 5.3 percent in India. Our country is still in the developing process because as citizens we are not paying enough taxes. The unemployment rate is relatively high in Pakistan as compared to India.
Recently the International Monetary Funds (IMF) earlier made the demand asking Islamabad for changes in Personal Income Tax (PTI).
The IMF held a first-round discussion with Tax Officials last week and raised the issue of reforms in the PIT to raise maximum revenue, especially from salary incomes.
Last year the same demand got rejected by the government.
As per one of the proposals the burden of tax payment would be decreased on the lower-income ceiling earning Rs600,000 per annum, while tax incidence would be increased on those who are earning over Rs300,000 per month basis.
What is your opinion do we need to pay income taxes & our government should approve IMF Request?
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