Seven Reasons to File Your Taxes Now!

We know that filing a tax return and how to file an income tax return is not everyone’s cup of cake. Last year, 90 percent of Pakistanis would rather get a flu shot than do their taxes, but doing your taxes is important – here we tell you why and how to file an income tax return.

Just as important as “why to file / e-file” is “when to file.” Here are seven reasons why filing now, rather than waiting until the deadline, will save you stress and money:

• Avoid penalties:

  If you miss the deadline and owe tax, you will be required to pay interest and penalties that could have been avoided. So if you gave yourself enough time to file. The Federal Board of Revenue (FBR) will charge 1 percent each day of your tax deducted owing as a late-filing penalty, to a maximum of 50% of tax payable. This penalty might be double if you were also late filing in any of the three previous years.

• Withholding Tax:

  If you’ve had too much tax withheld from your cash withdrawal, you are entitled to a refund. It is your money, so file a return and get it back.

• GSM Services:

  If you use a cell phone or any Pakistan GSM service (Zong, Ufone, Mobilink, Warid), either prepaid or postpaid, you are eligible for the Tax credit. You will not receive this credit unless you file a tax return.
  

• Educational Fees:

  If you pay you, your spouse, or you are any family member’s educational fees, entitle to tax Deducted, you can claim that tax on your return every year.

• Senior Citizen or Full Time Teacher:

  If you are a Full-Time Teacher or Age 60+, you will get a tax rebate of almost 25% of your tax deducted. It is easy to claim it in your return.

• Hold any Open ended Funds or Insurance:

  If you hold any open-ended funds like Takaful, Mutual Funds, or any insurance, you can easily avail yourself of a large amount of tax credit.

• If you are planning to Purchase a House or Motor Vehicle:

  FBR offers much relief in the tax rates you pay while purchasing a car or house. You can claim additional tax deducted in your Tax Return.

How to File Income Tax Returns (ITR)

Effective tax preparation and planning are year-round activities. While filing your income tax return, especially how to file an income tax return, may seem like a lot of work, it’s worth taking the time. If you have gathered all your necessary documents, filing your taxes sooner rather than later means you can enjoy the rest of the year ahead, guilt-free.

How to file an income tax return is a million-dollar question and one that is usually misguided by people. Check out the video. We hope it will help you a bit:

KLA Pakistan offers various tax services – for employees, employers/businesses, companies, and everyone are in-between! Whether you would like one of our tax professionals to prepare your taxes and file your income tax return. KLA Pakistan has a solution of your every tax and finance-related problem.

Get in touch today — Complex Issues, Specialist Advice!

FOR ALL YOUR TAX AND FINANCE RELATED NEEDS, CONSULT OUR PROFESSIONALS.

You might find these further articles useful:

Why you should Audit your Financial Statement

Advantages and Benefits of Company Registration in Pakistan

Benefits of FBR NTN and online NTN Verification

If Your Goal Is To Get Biggest Refund Possible

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