The Federal Board of Revenue (FBR) has opened its online portal for filing annual income tax returns for the tax year 2024. As the deadline approaches, taxpayers must be aware of the necessary documents to avoid penalties.
The FBR has set a return filing deadline of September 30, 2024, for salaried persons, business individuals, Association of Persons (AOPs), and companies with a special accounting year. Meanwhile, companies with an accounting year from July to June have until December 31, 2024, to file their returns.
Before starting the return filing process, taxpayers should gather all required documents to ensure a smooth and complete submission. According to tax experts, the following documents are essential for different categories of taxpayers:
For Salaried Individuals
1. Salary Income Certificate or Tax Deduction Certificate: This certificate, typically provided by the employer, details the salary earned and the tax deducted at source. It is a crucial document for accurately reporting income and taxes paid.
2. Evidence of Other Sources of Income: Salaried persons should include documents evidencing any additional income sources, such as rental income. This ensures all income streams are reported, preventing discrepancies and potential penalties.
3. Certificates of Profit on Investments: These certificates detail any income earned from investments such as fixed deposits, mutual funds, or savings accounts. Including these ensures that investment income is accurately reported.
For Business Individuals, AOPs, and Companies
1. Income from Business Details: This includes comprehensive records of sales, purchases, stocks, salaries, utilities, rent, petrol expenses, and other business-related expenses. Maintaining detailed and accurate records is crucial for correctly determining taxable income and allowable deductions.
2. Income from Property: Documents related to rental income, such as lease agreements and rent receipts, should be included. This ensures that property income is accurately reported and taxed accordingly.
3. Income from Other Sources: Any additional income sources, such as dividends, interest, or other investments, should be documented and included in the return. Proper documentation prevents omissions and potential issues with the FBR.
4. Income from Securities: Details of any income earned from securities, such as stocks and bonds, should be included. This ensures that all investment income is accurately reported.
Importance of Accurate Documentation
Accurate documentation is critical in the return filing process. It ensures that all income is reported correctly and that taxpayers can claim all eligible deductions, ultimately reducing the tax liability. Inaccurate or incomplete documentation can lead to discrepancies, resulting in potential penalties or audits by the FBR.
Steps to File the Income Tax Return
1. Gather Required Documents: Ensure that all necessary documents are collected and organized before starting the return filing process. This includes salary certificates, investment certificates, business income details, and property income documents.
2. Access the FBR Online Portal: Log in to the FBR’s online portal using the provided credentials. The portal is designed to facilitate the return filing process, offering step-by-step guidance and support.
3. Fill in the Required Information: Enter all relevant information accurately, ensuring that it matches the details in the gathered documents. This includes income from various sources, deductions, and any other relevant financial information.
4. Review and Submit: Carefully review the completed return to ensure all information is correct and complete. Once satisfied, submit the return through the online portal. Keep a copy of the submitted return and the confirmation receipt for future reference.
Filing income tax returns accurately and on time is crucial to avoid penalties and ensure compliance with tax regulations. By gathering the necessary documents and following the outlined steps, taxpayers can confidently navigate the return filing process for 2024. Staying informed and organized is key to a smooth and hassle-free tax filing experience.