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Tax Rebate Tips: Follow These 8 Tips of KLA Pakistan to Get a Biggest Refund Possible.

Tax Rebate Tips: Follow These 8 Tips of KLA Pakistan to Get a Biggest Refund Possible

There is something deeply satisfying about receiving a big, fat Tax Refund and Tax Rebate from the Federal Board of Revenue (F.B.R). Your Employer withholds a big slice of your paycheck each month for federal and state income taxes, and now is your chance to get some of that cash back.

Video below covers almost every aspect of Tax Rebate and Tax Refund you can avail in Pakistan:

Maintain Utility Bills

Utility Bills such as PTCL Bills, Prepaid & Postpaid Global System for Mobile Communications (GSM) services like; Zong, Mobilink, Ufone, Warid, etc) and Commercial Electric bill owe a huge amount of income tax deduct. But you can earn a notable tax credit or tax rebate – Refund by maintaining each and every bill or request a year end annual tax deduction certificate from respective franchises.

Deduct donations

Donation/Zakat deductions are a great way to lower your taxable income.

The FBR allows you to deduct up to 25% of your taxable income in charitable contributions to tax-exempt organizations.

Those include religious organizations, community groups, charitable organizations, colleges, nonprofit hospitals and more.

Deductible contributions include money, personal property, stocks and securities, and even expenses incurred while volunteering.

Is You or Your Family Member Goes to Any Educational Institute?

Educational institutes deduct handsome amount of withholding tax on educational fees that is refundable, you show such tax credit while Filing you Income Tax Return to uplift Tax Rebate.

Maintain every pay slips or invoice that you submit to respective institute to claim it in year end.

Did You Purchase or Transfer Ownership of a Car this Year?

Did you get a relief in rates of tax deducted while purchasing or transferring ownership of a car? If not, claim it right way with you annual income tax return as FBR sanction tax relief for active tax payers – one who file their income tax return from tax year 2014.

Maintain a Record of Withholding Token Tax on Motor Vehicle

Do maintain a withholding token tax slip to claim tax credit. You can claim tax credit up to PKR 30,000 depending on your motor vehicle engine capacity. It increases your tax rebate and refund significantly.

Are You Senior Citizen (60+) or Full Time Teacher?

FBR offers a rebate to senior citizens of 50% and to full time teacher of 25% we recommend you to maintain your records and do claim that in your annual Income Tax Return.

Own any Open ended funds, like Mutual funds or pensioner funds?

Significant tax credit up to 20% of your Taxable Income is offer by FBR. Don’t forget to claim that in your annual income tax return.

Did you pay your Life Insurance Premium?

If you owe a life insurance, do maintain a record and evidences of premium paid or deducted during the year and never forget to get a tax credit. It’s notably increase your Tax Rebate and Refund.

Bonus Tip: Did your bank deduct withholding tax on cash withdrawal?

If yes, come up with annual tax deduction certificate from respective bank or a complete year statement to sum up all the deductions and of course to leverage your refund.

Use our tool to check your possible Tax Refund.