One has to pay income tax if his annual earning is 400,000/- PKR or above. The government determines the tax rate applied to your per year earnings and so n this regard a tax slab is made so as to classify each tax payer as per his earning per annum. With tax return filing, you will also have to tender your wealth reconciliation statement.Law required a person to show his income, profit, loss and expenses to be mentioned in one form, person is also required to provide details of his assets possessed and disposed in a prescribed form referred to as Wealth Statement which as such is mandatory to be filed.If you want to reconcile your last year’s wealth with this year’s wealth statement, following is a basic technique for it.
Wealth
Wealth (last year): PKR 1500
Wealth (current year): PKR 2000
Increase/Decrease in wealth: PKR 500 (call it ‘A’)
Income Sources:
Salary income: PKR 500
Rental Income (if any): PKR 900
Business Income (if any): PKR 200
Foreign remittance (if any): PKR 100
Total Sources of Income: PKR 1700 (call it ‘B’)
Now deduct the following:
Personal expenses: PKR 500
Other(s) e.g. marriage of sister/son: PKR 500
Random Taxes Paid: PKR 200
Total amount of expenses: PKR 1200 (Call it ‘C’)
Income Sources (B) – Expenditures (C) = PKR 500 Supportive documents for filing of Tax Return
Salary Certificate
CNIC (Original and Photocopy)
Email ID (If possible, make a new one dedicated to Income Tax Returns/FBR only)
Bank Certificate (A written verification that you are an account holder at the respective bank – where your salaries are transferred)
Mobile (Keep all your mobilebills documented if you are a Post-Paid user)
Note: A and difference of (B-C) should always be equal