How register NTN and Fill 181 (Form of Registration filed voluntarily) (Income Tax)

[bsienn]

Greetings everyone,

After my graduation I have started job in Lahore with Annual salary in Slab range of 500,000 to 750,000.

Frankly I am very illiterate about taxation. After working 2 year since 2015 I just stumbled upon my taxation duty as a Pakistani national.

My company started deducting the tax from my salary mentioning that it is required by banks as of some law, but me and 90% of the employees still don't know or bother whats that suppose to mean. An I'm not sure weather my tax is being paid to Gov. or is going in company's pocket.

As a national I desire to pay my taxes honestly. And I need your help and advise on this.

I have registered an account through FBR Iris portal with my CNIC.
Now I'm suppose to fill the 181 form.

I'm not really good at understanding the requirements and not sure how to fill the form.
Kindly help me fill the form.

The PDF recourse given by the FBR doesn't help much, as it just says that fill the xxx fields now fill the yyy fields.
Also the form is a bit different in my case for Address Tab.

First I'm concerned about the Accounting Period dates in Personal Tab.


The Personal Tab is already filled with my accurate information and the Accounting periods are sets to 1-july to 30-june by default. Should I let the dates as it is?

In PDF help document it says that address/business fields are required.
My ID is registered on my fathers house (Gujranwala) and I live in Lahore in a rental house at the moment.
What should be filed in Property Tab?

Links Tab: It'snot very descriptive to what should be put in there, but the PDF document mentions that other properties should be mentioned here, that's what I understood. Please guide main what is required in this Tab.
I don't own any personal assets.

What is the Attachment Tab?

Do I need any documents that needs to be attached there? I read somewhere that I need proof of salary and bank certificate. Are such things required? If so what kind of document should I mention to authorities to have them.

I just read that to get the Certificate of Tax payer I need to go to the FBR office and bring some documents along.
Is that necessary when I'm registering through online FBR portal?

Kindly overlook any of my unawareness or mistake and guide me through to help a brother.
I'll really appreciate any pointers or help.

P.S. My next goal is to understand why should I pay tax, what are benefits and how should I utilize the system, how to file returns and what is required for me as a salaried employee to achieve this.

Regards

[tintin1]

This post was flagged by the community and is temporarily hidden.

[abstrusemind]

U dont have to enter any data in any of the tabs u mentioned above.. just add either current or permanent home adress in the property tab.. select the period as 2016...

Once u get registered there is no need to get certificate of registration.. u dont have to go to fbr office as ur cnic is ur ntn now..just file the return..

For return u need to get certificate of tax deduction from ur company giving detail of total income for the year and tax deducted by ur company... also u should have the ntn of ur company as u will have to enter details of ur employer as well.

Only benefit u will get after filing ur return will be that u become a filer and enjoy lower rates of tax from excise and banks etc.. also u will have to file return of year 2015 as well i.e from july 2014 to june 2015 in order to become a filer in fbr data..

U wont get any refund etc from fbr so just file ur return by showing that ur total tax liability has been already deducted by company and u dont have any tax payable...

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[bsienn]

@tintin1 and @abstrusemind

Thanks for the information.

I read that FBR doesn't return tax cash instead just fix it in next returns. Well that's absurd.
Also the FBR site becomes inaccessible and lacks in help documents and navigation.
Calling their helpline they respond that they don't have information in-hand to help. Great isn't it.

I wonder how many people actually file or bother with returns or tax with such unhealthy system.
Well Thanks for your answers, really appreciate.

[butwhy]

The above 2 people are correct.

You don't really owe any more tax, the tax is already deducted from your salary by employer. To make sure the tax has been deducted and paid to government by the company, always ask for tax certificate that shows that your employer has paid the tax and not just keeping it for itself.

You don't exactly need to file a return unless you get a notice. Then you have to or face a Rs.20,000 fine (or more if you have unpaid taxes).

Only file a return if you're going to buy a car etc, that's when you save on withholding tax.

[tintin1]

This post was flagged by the community and is temporarily hidden.

[butwhy]

@tintin1 and @abstrusemind

Thanks for the information.

I read that FBR doesn't return tax cash instead just fix it in next returns. Well that's absurd.
Also the FBR site becomes inaccessible and lacks in help documents and navigation.
Calling their helpline they respond that they don't have information in-hand to help. Great isn't it.

I wonder how many people actually file or bother with returns or tax with such unhealthy system.
Well Thanks for your answers, really appreciate.

Yes, they don't return cash. Some of it due to law. Most of it due to government pressure because of poor revenue collection. The government currently owes taxpayers 100s of billions in sales tax refunds.

Also, the tax rates are very high, so that's also a big reason.

[abstrusemind]

the FBR website is more supportive for Windows Internet Explorer and believe me this is incredibly healthy system which they've developed.

If you are using explorers like Google Chrome or FireFox, etc. then you cannot access this site as full. It gives errors. Only Windows Internet Explorer is most suitable for it.

Yeah internet explorer was always better than chrome but in this year i was unable to file my return using explorer.. strange issues appeared so contacted a friend n he said use chrome... it worked.

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[abstrusemind]

The above 2 people are correct.

You don't really owe any more tax, the tax is already deducted from your salary by employer. To make sure the tax has been deducted and paid to government by the company, always ask for tax certificate that shows that your employer has paid the tax and not just keeping it for itself.

You don't exactly need to file a return unless you get a notice. Then you have to or face a Rs.20,000 fine (or more if you have unpaid taxes).

Only file a return if you're going to buy a car etc, that's when you save on withholding tax.

But non filers mostly get notices after purchasing a car and property etc but normally after delay of 1 or more years.. and that time it is always a hassle to get some kind of gift deeds or other explanation in order to answer..

So its always better to file the return if some tax is being deducted from ur salary...

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[butwhy]

But non filers mostly get notices after purchasing a car and property etc but normally after delay of 1 or more years.. and that time it is always a hassle to get some kind of gift deeds or other explanation in order to answer..

So its always better to file the return if some tax is being deducted from ur salary...

Sent from my SM-J710F using PW Forums mobile app

That is why I said file return BEFORE buying car etc.

[madtorque]

Everyone who is earning more than 35k per month should file his/her tax return through FBR iris system which is a breakthrough in itself as we do not need to go to any lawyer and pay them fees to do this as we can do it easily instead, secondly in country like Pakistan it is amazing to have such an opportunity....

As for what are the benefits

As far as how to is concern,
As a salaried person you have to focus on three forms that are

181 - give your details with house detail in property
Also give your employer detail in LINK section. If your employer has a valid NTN and pays tax, you can search it by name in the search option
116(2) - you give detail of your spending here... where you put and how much.... please be as accurate as possible
114(1) - you give your annual salary amount and annual tax here... it should match your tax certificate, which must be given to you by your employer.

Peace and enjoy your name in the tax payer list on FBR website.....

[capsat]

you have started a thread without using the search option. There has been 3 threads covering all your questions and few of people have become filers just by reading steps carefully defined by few members over this forum @pomi_pbs

or you may contact professional tax consultant for guidance Abdul Hafeez Soomar Cell 0333 5165424 - consultation charges apply

[bsienn]

Thanks for all the guide.

As provided, I'll follow the given links and the contacts for quires related to filing return.
@tintin1 About Internet Explorer, seems like it works better than other browsers, will use this. @butwhy gave good suggestion, Thanks.
@madtorque the image you provided explains a lot, I'm not sure if that's the case being applied or not yet. But really helpful. Also you mentioned about the 3 forms and about the employer details to be file din 181 form.
I was not aware of that, and I have filed the form and submitted without the employers info in Link tab.
I'll look into what I can do about that; Maybe I can submit that details during return form.

Well having an automated system for such system critical task is really great.
I just wished that I had some channels to understand the process myself.
@capsat you are right, I didn't search thoroughly into the post about my issues.
I'm reading the related posts and they are very helpful. Will look into more topics.

As a new mandatory requirement of having NTN and returns stuff. I Wish there was some good article explaining the what, where and how of this. Having a guide for this for a simple person like myself would be very helpful.

In my opinion the general public should be notified and trained on the duties, risk and benefits of such tasks.

[Hassan0001]

Anyone who tells you not to file any return, because your company deposits tax and provides you a challan is sufficient, is misguiding you. Its a legal obligation and moral duty to file the tax return being citizen of this beautiful country ( please do not start a political debate on why we shouldnot file return and deposit tax). There are many many benefits of being a filer if you are honest about your earnings and do not intend to manipulate tax money. BTW, an employee is never in a position to manipulate taxes on salary and therefore you should file return to avail benefits of being a filer.

If you face any difficulty, please let me know in PM. I will help you out filling up forms through teamviewer if its too difficult for you to understand.
All the best.

Thanks for all the guide.

As provided, I'll follow the given links and the contacts for quires related to filing return.
@tintin1 About Internet Explorer, seems like it works better than other browsers, will use this. @butwhy gave good suggestion, Thanks.
@madtorque the image you provided explains a lot, I'm not sure if that's the case being applied or not yet. But really helpful. Also you mentioned about the 3 forms and about the employer details to be file din 181 form.
I was not aware of that, and I have filed the form and submitted without the employers info in Link tab.
I'll look into what I can do about that; Maybe I can submit that details during return form.

Well having an automated system for such system critical task is really great.
I just wished that I had some channels to understand the process myself.
@capsat you are right, I didn't search thoroughly into the post about my issues.
I'm reading the related posts and they are very helpful. Will look into more topics.

As a new mandatory requirement of having NTN and returns stuff. I Wish there was some good article explaining the what, where and how of this. Having a guide for this for a simple person like myself would be very helpful.

In my opinion the general public should be notified and trained on the duties, risk and benefits of such tasks.

[butwhy]

Anyone who tells you not to file any return, because your company deposits it and provides you a challan is sufficient, is misguiding you. Its a legal obligation and moral duty to file the tax return being citizen of this beautiful country ( please do not start a political debate on why we shouldnot file return and deposit tax). If you face any difficulty, please let me know in PM. I will help you out for filing even through teamviewer if its too difficult for you to understand.
All the best.

There's nothing illegal about not filing a return in this guy's case. Worst case scenario, he gets a notice with 14 day deadline to file a return. Okay, then file the return.

[Hassan0001]

Dear Sir,
For your information, please see below section 114 reproduced below from Income Tax Ordinance, 2001,

---

114. Return of income. — (1) Subject to this Ordinance, the following persons are required to furnish a return of income for a tax year, namely:–

[SUP][SUP][1][/SUP][/SUP][(a) every company;]

[SUP][SUP][2][/SUP][/SUP][(ab) every person (other than a company) whose taxable income for the year exceeds the maximum amount that is not chargeable to tax under this Ordinance for the year; [SUP][SUP][3][/SUP][/SUP][or]] PKR 400,000 for 2015-16

[SUP][SUP][4][/SUP][/SUP][(ac) any non-profit organization as defined in clause (36) of section 2; [SUP][SUP][5][/SUP][/SUP][ ] ]

[SUP][SUP][6][/SUP][/SUP][(ad) any welfare institution approved under clause (58) of Part I of the Second Schedule;]

[SUP][SUP][7][/SUP][/SUP][(b) any person not covered by clause [SUP][SUP][8][/SUP][/SUP][(a), (ab), (ac) or (ad)] who,—

---

Jurisdiction of Income Tax Ordinance, 2001

1. Short title, extent and commencement.—(1) This Ordinance may be called the Income Tax Ordinance, 2001.

(2) It extends to the whole of Pakistan.

(3) It shall come into force on such date as the Federal Government may, by notification in official Gazette, appoint

---

you may go through the ordinance at following link, However, it may be too heavy for you to understand keeping in view your level of understanding of laws of Pakistan.
Federal Board of Revenue (FBR), Government of Pakistan

There's nothing illegal about not filing a return in this guy's case. Worst case scenario, he gets a notice with 14 day deadline to file a return. Okay, then file the return.

[madtorque]

Thanks for all the guide.

As provided, I'll follow the given links and the contacts for quires related to filing return.
@tintin1 About Internet Explorer, seems like it works better than other browsers, will use this. @butwhy gave good suggestion, Thanks.
@madtorque the image you provided explains a lot, I'm not sure if that's the case being applied or not yet. But really helpful. Also you mentioned about the 3 forms and about the employer details to be file din 181 form.
I was not aware of that, and I have filed the form and submitted without the employers info in Link tab.
I'll look into what I can do about that; Maybe I can submit that details during return form.

Well having an automated system for such system critical task is really great.
I just wished that I had some channels to understand the process myself.
@capsat you are right, I didn't search thoroughly into the post about my issues.
I'm reading the related posts and they are very helpful. Will look into more topics.

As a new mandatory requirement of having NTN and returns stuff. I Wish there was some good article explaining the what, where and how of this. Having a guide for this for a simple person like myself would be very helpful.

In my opinion the general public should be notified and trained on the duties, risk and benefits of such tasks.

Yes I think you can still add the company info in form 181. And it is good that you have filled it successfully.

[butwhy]

Dear Sir,
For your information, please see below section 114 reproduced below from Income Tax Ordinance, 2001,

---

114. Return of income. — (1) Subject to this Ordinance, the following persons are required to furnish a return of income for a tax year, namely:–

[SUP][SUP][1][/SUP][/SUP][(a) every company;]

[SUP][SUP][2][/SUP][/SUP][(ab) every person (other than a company) whose taxable income for the year exceeds the maximum amount that is not chargeable to tax under this Ordinance for the year; [SUP][SUP][3][/SUP][/SUP][or]] PKR 400,000 for 2015-16

[SUP][SUP][4][/SUP][/SUP][(ac) any non-profit organization as defined in clause (36) of section 2; [SUP][SUP][5][/SUP][/SUP][ ] ]

[SUP][SUP][6][/SUP][/SUP][(ad) any welfare institution approved under clause (58) of Part I of the Second Schedule;]

[SUP][SUP][7][/SUP][/SUP][(b) any person not covered by clause [SUP][SUP][8][/SUP][/SUP][(a), (ab), (ac) or (ad)] who,—

______________________________________________________

Jurisdiction of Income Tax Ordinance, 2001

1. Short title, extent and commencement.—(1) This Ordinance may be called the Income Tax Ordinance, 2001.

(2) It extends to the whole of Pakistan.

(3) It shall come into force on such date as the Federal Government may, by notification in official Gazette, appoint

___________________________________________________

you may go through the ordinance at following link, However, it may be too heavy for you to understand keeping in view your level of understanding of laws of Pakistan.
Federal Board of Revenue (FBR), Government of Pakistan

I know all of this...

Now tell me where is the punishment for NOT filing a return ?

Can you see it there? Of course not. It's in a different section of the ordinance. There is no real punishment FOR NOT FILING RETURN (If you are still paying all the taxes, as is the case here). At worst, this person (thread starter) will get a notice from commissioner to file a return in what ever many days(I don't remember exactly). And only after failing to file a return within the deadline will he have to possibly face a fine of a minimum of 20,000 and going upto a certain amount (I don't remember). So the risk for not filing a return is kind of minimal.

And I'm not saying throw away all useful tax documents (receipts, etc). HAVE to keep them, just in case.

[Hassan0001]

I know all of this...

Now tell me where is the punishment for NOT filing a return ?

Can you see it there? Of course not. It's in a different section of the ordinance. There is no real punishment FOR NOT FILING RETURN (If you are still paying all the taxes, as is the case here). At worst, this person (thread starter) will get a notice from commissioner to file a return in what ever many days(I don't remember exactly). And only after failing to file a return within the deadline will he have to possibly face a fine of a minimum of 20,000 and going upto a certain amount (I don't remember). So the risk for not filing a return is kind of minimal.

And I'm not saying throw away all useful tax documents (receipts, etc). HAVE to keep them, just in case.

I only answered your question that its not illegal to not file return.

I can also answer your risk based typical desi approach by one sentence without going into technical details: the person not filing return will be treated as non filer for deduction of withholding taxes(incidence of higher rates of withholding taxes) and will be ineligible to take benefit or claim refund of taxes paid over his admitted liability for year.

Notice for filing return and penalty is a secondary issue which rarely arises.

Sent from my iPhone using Tapatalk

[bsienn]

I just read 2 things.

Every person is liable to file income tax return. And those are also required to file wealth statement.

Every one here is to help and I'm really grateful to all of you. As a Pakistani its our duty to pay Taxes.
Otherwise we don't have any right to scold politicians and corruption in general.

Abb ager Marica ja k un ko 45% Tax dete waqt dard nahi hota to Itna to Pakistan main reh k itna to day he saktay hen.
Baqi nai to Dubai account bnwa lena chaiay Tax free income ^_^

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