Tax consultant

07/10/2021

11/06/2021

BUDGET 2021-22*
*BULLET POINTS*
*11-6-2021*
*PART I*

1- Self Assessment Scheme to be revive
2- Third Party audit introduced
3- Automated based selection for audit
4- Income and expenditure based tax system to be introduced
5- Information technology to be used for non filers
6- No harassment by any official to tax payers
7- Salaried person no new taxes
8- GST net to be increased and all wholesaler and retailer will be brought in scheme
9- Prizes will be given to sales tax payees receipt owners
10- To introduce simple tax return form
11- Sales tax and FED changes introduced
12- Small business turnover tax increased to 10 Million rupees having tax credits
13- Cars upto 850cc car FED abolished and sales tax decreased to 12.5% and VAT abolished.
14- IT services, zero rated introduced
15- Locally Electronic cars sales tax decrease to 1%, VAT exempted, Fed exempted
16- Special Techonolgy zones will be introduced and for their related imports will be exempted
17- Telecom --- FED exempted, Sales tax from 17 to 165, Merchant discount abolished
18- Tier 1 Retailers ---price scheme introduced for POS schemes
19- INCOME TAX—Enquiry system will be abolished
20- Show cause time increase to 20 days
21- Third party audit is introduced to curtail powers of assessing officers
22- Automated system for Refund will be introduced
23- ADR again to be revive
24- WHT decrease by 40%
25- Direct and Indirect taxes is burden and making compliance difficult thereof
26- Documented sector is deducting 38 clauses and from this 12 clauses deleted
27- WHT deleted from banking transaction, Stock Exchange, Travelling, Mobile phone (decrease); Minerals, Credit Cards, etc.
28- Decrease in WHT in oil field , tourism, etc
29- Disposal of securities Capital Gain Tax is decreased to 12.5%
30- Individual and AOP turnover tax increased to 100 Million
31- Turnover tax Rate decrease to 1.25% of turnover
32- Installation of POS machine will get tax credit
33- Fix Tax Scheme for SME’s
34- Special tax regime for Manufacturers
35- One page tax return to be introduced for SME’s
36- Services from Banking channel receipts, tax to be lower down
37- Tax Credit on IT sectors under section 100C
38- Special economic zone, tax on turnover now exempted
39- Future commodities market reduced tax to 3%
40- Telecommunication sector as industrial undertaking
41- Many changes in Custom Act for cars below 850 cc, motorcycles, electronic cars, etc
42- Relief to textile sector
43- More than 300 Pharmaceuticals materials—custom duty exempt including syringes etc.
44- Leather industry material and dairy industry will get relief through changes in Tarriff
45- Increase in Regulatory duty on mobile rejected by PM
46- My car policy introduced
47- Minimum salary increase to rs. 20000/-
48- Government servant to be allowed 10% Adhoc Allowances
49- Pensioners will get 10% more
50- Many incentives for Stock Exchange, Housing, Autos, Agriculture, Health, Services, IT sector, Students, Individuals, Govt.. Servants, etc etc INTRODUCED

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Courtesy:
*Tax Consultant*
+923124556660

07/11/2020

*Benefits of Being a Filer*

The income tax filer is entitled to many benefits by the government of Pakistan on those who do not file. By submitting an annual tax return, you can enjoy permission to file and reduce your taxes in many cases.

According to the source The News following are the benefits to becoming a filer in Pakistan:

On bank transactions which include demand draft, cross-check or payment orders, tax filers pay zero tax as against Rs.600 tax on each bank transaction, paid through non-filers. On cash withdrawal of more than Rs 50,000, taxpayers required to pay only 0.3 percent tax while non-filer pays 0.6 percent tax. On bank’s profit, and saving scheme active tax filer pays 10 percent tax against the 15 percent tax paid by non-filers. If a filer is an importer of raw materials, he will have to pay only a 5.5% tax on the import of raw materials whereas the non-filer has to pay 8% tax. For commercial exports, filer exporters are required to pay only 6% duty on export of goods whereas non-filer exporters pay 9% duty. On the supply of goods to the government and companies, taxpayers are required to pay 4.5% duty whereas non-filers pay 9% tax duty. Tax filing contractors are required to pay a 7.5% tax on the amount of contracts while non-filers pay a 15% tax. For the prize money of prize bonds, active taxpayers pay a 15% tax while non-filers pay 25% tax. Similarly, on commission amount tax filer pays 12 percent tax whereas non-filer needs to pay 15 percent tax on same. Tax filer is required to pay only half the holding tax as compared to the non-filer. For vehicle registrations tax filer pays Rs 15000 to Rs 250,000 as withholding tax whereas non-filer pays Rs 25000 to Rs 400,000. For vehicles annual token tax filers required to pay Rs 800 to 10,000 as compared to Rs 1200 to Rs 30,000 tax paid by non-filers. There is no restriction for the tax filer to purchase any property worth more than Rs 50 million by the government as compared to non-filers. For purchased property active taxpayers pay a 2% tax on the total amount of purchased property whereas non-filer required to pay a 4% tax. In addition, filers pay only 1% tax on the transfer of property, while non-filers pay a 2% percent tax.

06/11/2020

For Queries pls contact at 03124556660

07/12/2019

https://www.dawn.com/news/1520930/fbr-moves-to-engage-traders

Committees to facilitate registration with tax departments.

04/12/2019

https://www.dawn.com/news/1520356/tax-laws-being-amended-to-cut-non-filers-utility-connections

The government has extended the last date for filing of tax returns until Dec 16.

24/11/2019

https://www.dawn.com/news/1518523/fbr-to-go-after-17000-big-retailers-in-latest-documentation-drive

Shabbar Zaidi announces that the tax body will launch automated POS for all large retailers from next month.

11/11/2019

https://www.dawn.com/news/1515757/three-committees-constituted-for-restructuring-fbr

FBR chairman has tasked the committees to submit their recommendations by Nov 18.