ISLAMABAD – Under the Income Tax Ordinance, 2001, there are specific categories of persons who are not required to file an annual income tax return, as clarified in Section 115 of the law. This provision offers relief to certain individuals based on humanitarian, age-related, or residency grounds.
Section 115 of the Income Tax Ordinance, 2001 clearly outlines the persons who are exempt from furnishing an income tax return solely due to the application of sub-clauses (iii), (iv), (v), and (vi) of clause (b) under sub-section (1) of Section 114.
According to the text of Section 115, the following persons are not obligated to submit a return of income for a tax year:
• A widow – A woman whose spouse has passed away is not required to file a return, provided her income falls within the scope mentioned under the specified sub-clauses of Section 114.
• An orphan below the age of twenty-five years – Young individuals who have lost both parents and are under the age of twenty-five are also excluded from the mandatory filing requirement.
• A disabled person – Any individual suffering from a recognized disability is exempt from filing a return of income based on the same conditions outlined in the ordinance.
• A non-resident person in relation to ownership of immovable property – If a person is classified as a non-resident and merely owns immovable property in Pakistan, they are not required to file a return of income on that basis alone.
This legal provision ensures that vulnerable or special-status persons, such as widows, orphans, and disabled individuals, are not burdened with compliance requirements unless they meet other taxable criteria. Similarly, non-resident persons who do not earn income from within Pakistan, aside from owning property, are also given relief under the law.
It is important for taxpayers and advisers to be aware of these exemptions when determining whether a return of income is mandatory, as misunderstanding the law can lead to unnecessary filing or penalties. The Federal Board of Revenue (FBR) encourages all eligible persons to understand their tax responsibilities while acknowledging those who are legitimately exempt.