04/08/2026
📢 Section 115 – Persons Exempt from Filing Income Tax Return
Income Tax Ordinance, 2001
Under Section 115 of the Income Tax Ordinance, 2001, certain persons are exempt from the requirement to file an income tax return, even if they own immovable property or other substantial assets, subject to the conditions prescribed by law.
Exempt Categories
✅ Widows
✅ Orphans under the age of 25 years
✅ Persons with disabilities
✅ Non-residents, where the only reason to file a return would otherwise arise from ownership of immovable property in Pakistan.
Important Note
Although these categories may be exempt from the statutory filing requirement under Section 115, filing a Nil Income Tax Return may still be beneficial in many cases.
By filing a return, eligible persons may:
✔️ Remain on the Active Taxpayers List (ATL) (where applicable under the law)
✔️ Avoid higher withholding tax rates on banking transactions, property purchases, vehicle registration, and other taxable transactions
✔️ Maintain an updated tax profile with FBR
💡 Key Takeaway
A legal exemption from filing does not always mean filing is the most beneficial option. Taxpayers should evaluate their circumstances before deciding whether to rely on the exemption or voluntarily file a return.
📞 For professional assistance regarding:
✔️ Income Tax Returns
✔️ ATL Status
✔️ Tax Exemptions
✔️ FBR Compliance
WhatsApp: 0306 4632963
