Karachi, October 5, 2024 – The Federal Board of Revenue (FBR) has announced exemptions from annual income tax return filing for specific individuals for the tax year 2024-25. The exemption is aimed at alleviating the tax burden on certain vulnerable segments of society, as outlined under Section 115 of the Income Tax Ordinance, 2001.
The FBR declared that certain categories of individuals are not obligated to submit a return of income based on specific provisions within the ordinance. These exemptions reflect a targeted approach to ensure that individuals in socially or economically disadvantaged positions are spared from the procedural complexities of filing returns.
According to the FBR’s official notification, the following individuals will not be required to file income tax returns solely based on the stipulations of sub-clause (iii), (iv), (v), and (vi) of clause (b) under sub-section (1) of section 114 of the Income Tax Ordinance, 2001:
1. Widows: Women who have lost their spouses will be exempt from filing, ensuring they are not burdened during a vulnerable period of their lives.
2. Orphans under 25 years of age: Young individuals who are grappling with the loss of parental support are also exempt, highlighting the FBR’s focus on providing relief to those facing financial and emotional hardship.
3. Disabled Persons: Persons with disabilities are relieved from the responsibility of filing returns, underscoring the FBR’s recognition of the additional challenges faced by this segment of the population.
4. Non-resident Owners of Immovable Property: Non-resident individuals who own immovable property in Pakistan will also be exempt, provided their only source of obligation stems from property ownership, simplifying the compliance process for non-residents.
This latest exemption is part of a broader strategy by the FBR to streamline the tax system and reduce unnecessary filing requirements for individuals with limited or exceptional circumstances. By focusing on targeted relief, the FBR seeks to foster a more inclusive tax framework that acknowledges the distinct challenges faced by different segments of society.
The announcement has been met with widespread approval, particularly from advocacy groups working with widows, orphans, and persons with disabilities, who view the exemptions as a compassionate and pragmatic decision by the government. By simplifying compliance and removing unnecessary obligations, the FBR aims to create a more equitable tax environment in Pakistan, reinforcing its commitment to ensuring fairness and support for all citizens.
This exemption will not only ease procedural burdens but also reflects the FBR’s broader mission to modernize and humanize the country’s tax system.