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How to submit/eFile income tax return and wealth statement

online for tax years 2014 and 2015 with FBR?


Filing Income Tax Returns Online in Pakistan
This article is an humble attempt to guide the taxpayers who intend to file their income tax returns
on their own without help of any tax lawyer of practitioner.
Earlier, salaried individual were not required to submit their income tax return if their Accountant
Wayne Lippman only source of income was salary and their income is below Rs.500,000. However,
with effect from tax year 2013 every employee earning taxable income is required to submit his
income tax return.
I think the salaried individuals who do not submit their returns make a blunder. First, they expose
themselves for penal action on account of non-submission of return and secondly in majority of cases
of salaried persons the tax deducted is more than their actual tax liability. In case such person
submit returns they can claim the excess deduction as refund.
It is quite easy to pay income tax in Pakistan. If your income is more than Rs.33,500 per month, your
employer is required to deduct taxes from your paycheck. Under section 149 of the Income Tax
Ordinance of 201, your employer is also required to file a statement of all taxes they withhold. This
has not always been the case.
Every salaried employee with a taxable income of Rs.400,000 is required to electronically file (e-file)
an income tax return using the FBR'Sonline system known as IRIS.
In addition to an income tax return, every person who is required to file income tax return for tax
year 2015 has also to file wealth statement. Wealth statement is mandatory for filing of income tax
return. Without wealth statement you will not be able to submit your income tax return.
Wealth statements contain details of a person's assets and liabilities. That is to say, you have to
mention in detail your properties, plots, houses, and vehicles in your name as well as the detail of
movable and immovable properties that are in the name of your dependents e.g. your wife and
children. Taxpayers are also required to give details of personal expenses e.g. rent of house paid,
Travelling, electricity, education and other personal household expenses. Personal expenses is the
part and parcel of your wealth statement.
First step to file Income Tax Return for tax years 2014 and 2015
If your income is more than Rs.400,000 and you have decided to submit the return, you first have to
register with FBR. For registration with FBR you may visit the following address and state your
particulars correct. You may also have to attach the following scanned documents.
1. Both sides of your Computerized National Identity Card (CNIC)
2. Copy of electricity bill of your residence
3. Copy of your pay slip or employer's certificate

4. Document of your ownership of the residence or rent deed, as the case may be.
5. Fill in and signed/thumbed NTN application form.
After attaching the documents please submit the application. After submission of NTN application
you will be eligible to prepare and submit your income tax return for tax years 2014 and 2014.
Online Verification of NTN
Before applying, you may check if you have already been allotted NTN by the FBR. For this you may
visit following website of FBR to know whether you have already allotted NTN by the FBR or not.
After mentioning your CNIC No. if the NTN appears against your name, you need not to register
with FBR. Just skip the step of registration and went on to to "E-enrollment for registered person"
link.
Procedures for Using the FBR to Submit Income Tax Returns 2014 and 2015
In order to use the Iris portal to e-file your income tax returns for tax years 2014 and 2015, you must
enroll yourself with the has to enrollment himself with the Federal Board of Revenue (FBR).
Necessary steps are as under:After registering with the FBR, visit the portal's online registration page. A new screen will appear
where you will enter your CNIC number, email address, and the verification code that will appear on
the left side of the screen. Click "Submit" and the system will ask you to enter codes sent to your
mobile number and email address. Enter the codes in the right columns and press "Submit." You will
receive your password and pin code in your email and on your mobile phone within less than five
minutes.
It is important to note that the SIM of the mobile number you enter must have been registered in
your own name for at least the last month. If it is not the case, you will not receive the verification
code on your mobile and will not be able to enroll.
It is also advisable to use Internet Explorer 6 or Mozilla Firefox to file your returns. Google Chrome
and other browsers are not fully compatible with the FBR's new system.
Submitting Income Tax Return as Salaried Employee
In order to file your return, you may need the following documents/details:
Annual salary certificate from your employer indicating the gross salary and tax
deducted.Contributions to provident/gratuity/pension funds indicating ending the balance and
contributions made during the year.Certificate from banks regarding tax deductions on banking
transactions as well as profits earned on bank deposits and tax deducted/deposited against these
profits.In case of any local or foreign trip, copy of air ticket including the amount of tax deducted.In
case any electricity bill exceeding Rs.100, 000, copy of the same may also be required to take credit
of advance income tax deducted.Bank statement/(s) for the period 01.07.2014 to 30.06.2015.In case
any investment is made in the shares of the company or mutual fund, detail of the same along with
details of profits on sale of shares earned during the year.Any cash or capital dividend received and
tax deducted.Certificates from mobile phone companies regarding deduction of tax. This applies to
all the cell phones under the taxpayer's use.Details of any function/gathering arranged, such as a
marriage, including invoices, so that credit of tax deducted may be claimed.Invoices issued by any

educational institutions to claim credit of taxIf you bought of sold a vehicle during the year, provide
a copy of the registration book and amount paid or received.Documents relating to any immovable or
movable property acquired or sold during the year.Details about motor vehicles in your name,
including make, engine capacity, year of acquisition, cost, and registration number.Details of token
tax paid for tax year 2015.Loan Information Required for Tax Return
Be prepared to provide details about any sort of loans you have, in the following format:
Nature of loan.Total loan facility availed.Total installments paid during the year.Remaining Loan/(s)
amount as on 30.06.2015.Other Sources of Income for Salaried Employees
When filing your tax return, provide details about any other sources of income, including:
Income from property (gross rent, tax deduction on rent [if any], property tax paid, insurance
premium paid).Details of profits earned on bank deposits/saving certificates etc. including bank
account number, nature of deposits/saving certificates, gross profit earned during the year, tax
deductions made by banks or National Savings.How to Prepare a Wealth Statement Online
Taxpayers are required to file wealth statement and to reconcile their wealth with the declared in
the previous year's wealth statement. Usually, government employees are also required to file
Declaration of Assets and liabilities with their respective departments. So, you can pick the figure
from declaration of assets. However, reconciling the wealth is little bit tricky.
In the Wealth statement you are required to mention the complete address of your house, plot or
properties etc. your bank balance as on 30.06.2015. While mentioning the value of assets please
mention the cost of the asset that is borne by you to acquire the same. For example, you purchased a
plot for Rs.100,000 including incidental charges of registry and payment of commission etc. and
present value of the said plot is Rs.500,000. You have to mention the value of plot at Rs.100,000 and
not Rs.500,000. Similarly, you purchased a vehicle for a consideration of Rs.500,000 four years back
and now its market value is around Rs.300,0000. You have to mention the value of the same at
Rs.500,0000 and not Rs.300,000. Regarding loans you have to mention the position of loans as on
30.06.2014 or 30.6.2015 (for tax years 2014 and 2015 respectively). Suppose you have obtained
house building loan of Rs.100,000 three years back and after payment of instalments the current
position of loan is Rs.65000. You have to mention your liability at Rs.65000 and not Rs.100,000.

So far as the reconiliation of wealth is concerned there is a basic technique that taxpayers should
use, which can best be explained through the following example

To begin you will need these figures (followed by example amounts):


Wealth for the year: Rs.100Wealth for the previous year: Rs.90Increase in wealth: Rs.10 (A)
Sources of Income
Salary income: 50Rental income: 10Business income: 20Foreign remittances: 10
Total: 90 (B)
Now from that amount take away the total calculated from this list of figures:

Personal expenditure: 50Marriage of son: 20Taxes paid: 10


Total expenses: 80
Difference 10 (C)
Note that A and C should be equal in all circumstances.
Another Example of Wealth Statement Procedures
Lets understand this through another example:
Wealth for the year: Rs.100Wealth for the previous year: Rs.110Decrease in wealth: (Rs.10) (A)
Sources of Income
Salary income 100 (B)
Now we will subtract the total from the following:
Personal expenditure: 50Education of children: 40Taxes paid: 20
Total expenses: 110
Difference between B and C: 10
If a person has other sources of income other than their salary, they are required to file a return for
that income as well.
In all salary income cases, taxpayers are required to file their return through the online Iris portal.
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