As the deadline of September 30, 2024, for filing annual income tax returns for the tax year 2024 draws near, taxpayers in Pakistan are advised to gather the necessary documents to ensure smooth compliance with tax regulations.
The Federal Board of Revenue (FBR) has stressed the importance of this year’s filings and announced its intention to take stringent action against non-compliant taxpayers, particularly by scrutinizing past transactions and bank accounts of tax evaders.
Filing the income tax return for the tax year 2024 is crucial to avoid penalties and legal consequences. Proper preparation is key to ensuring that all required information is accurately submitted to the FBR’s online portal, thus avoiding potential complications in the future. Tax experts have compiled a checklist of essential documents that every taxpayer should have ready to make the correct entries.
Key Documents Required for Filing Income Tax Return 2024:
1. Salary and Pension Slips:
Taxpayers who are salaried or retired should gather their salary slips or pension slips covering the period from July 2023 to June 2024.
2. Bank Account Statements:
Complete statements of all bank accounts, including those from National Savings and mobile wallets, should be obtained for the same period (July 2023 to June 2024). This is critical for documenting income and expenditure.
3. Foreign Transactions Certificates:
If any amount was sent or received from abroad, a certificate detailing these transactions is required. This ensures transparency in foreign remittances and income sources.
4. Gift Deeds, Loans, and Insurance:
Any declarations regarding gifts, loans taken or given, or insurance policies need to be included.
5. Business Details:
For those who own or manage businesses, detailed records of investments, profits and losses, and expenses must be provided.
6. Mobile Phone SIM Tax Certificates:
Tax certificates for all mobile phone SIMs should be kept on hand, as mobile phone usage is subject to certain taxes.
7. Property Details:
Complete information on all properties (whether gifted, inherited, residential, commercial, agricultural, etc.) should be provided. This includes land, shops, and plots.
8. Assets:
Details of assets like vehicles, motorcycles, jewelry (gold), prize bonds, livestock (cows, buffaloes, horses), and even pets must be included.
9. Personal and Household Items:
The value of personal and household items in Pakistani Rupees should be listed, especially for high-value goods.
10. Assets in Others’ Names or Installments:
If any asset has been purchased in someone else’s name or on installment, it must be disclosed.
11. Annual Expenses:
A complete statement of annual expenses, including utility bills, educational and medical expenses, kitchen expenditures, vehicle maintenance, travel, shopping, and donations (such as Zakat), is essential.
12. Annual Savings:
Documenting all annual savings is equally important for accurately calculating net income.
FBR’s Stance on Non-Compliance
The FBR has made it clear that it will take serious action against those who fail to file their returns or attempt to conceal income. This includes reviewing previous years’ transactions and bank accounts to detect tax evasion.
By ensuring that all the necessary documents are in place, taxpayers can avoid potential issues and remain in good standing with the FBR. As the September 30 deadline approaches, it is imperative to act swiftly and file the income tax return on time.