Tax on remittance income?

[helpneeded321]

That is remittance and I think is not taxable as long as money comes in bank through banking channel and converted in rupees and I don't see any issue unless amount is above 1 crore.

[nfssaad]

the income tax return form has suddenly changed even more.

it has become really weird now. i was trying to file, but now kuch samajh nai aaraha. they have made it way too simple.

theres no longer any breakdown showing your individual assets.

only 1 single line where you type in total value of your assets and thats it.

[Nabs]

Asalamualikum. If a person has invested in stocks through his relative in foreign country,nd he sends the profit through banking channel nd money is converted into pkr through bank. Will there be an issue?

Ask your bank for Remittance Encashment Certificate for every remittance. In case FBR Audits you, then you will have to provide remittance certificates as proof for tax exemption under 111(4) of income tax ordinance.

111. Unexplained income or assets.
(4) Sub-section (1) does not apply,—
(a) to any amount of foreign exchange remitted from outside Pakistan through normal banking channels [not exceeding 5[five] million Rupees in a tax year] that is encashed into rupees by a scheduled bank and a certificate from such bank is produced to that effect.

[pwuser150469741418]

(a) to any amount of foreign exchange remitted from outside Pakistan through normal banking channels [not exceeding 5[five] million Rupees in a tax year] that is encashed into rupees by a scheduled bank and a certificate from such bank is produced to that effect.

Above 5 Million Rupees, is there a tax slab or something?

[capsat]

theres no longer any breakdown showing your individual assets.

sir download the form from website of FBR and read every page carefully, It has all details which need to be punched in.

By combining 114 & 116 it has become really simpler to declare and be a law abiding citizen.

Caution be maintained for declaration of property value which shall be as per FBR assessment value of the respective localities. The property valuation table is also available at FBR website.

over the personal assets column .. you can see PLUS ( + ) sign that is where you need to provide detail(s) of assets.

exercise caution save every page after calculate & computing. do not submit unless you are really sure everything is in order.

All the best .. !

[akifjanjua]

My suggestion for all freelancers is to just start filing.. As resident Pakistanis you must file and pay tax on income from abroad.. declare the income received from abroad and pay the applicable tax... remittance income exemption is for non residents so residents should avoid.. no point for a freelancer to get into company registration stuff etc.. keep it simple.. declare income and pay the due tax.

[capsat]

sir

the WHT ( with holding tax ) over foreign remittance is the ONLY Tax applicable over foreign income received via banking channel. BY RESIDENTs of Pakistan

filing an income tax return is our national obligation and any cnic holder with legitimate bank transfers from abroad can register as individual.

@pomi_pbs sir please your encouragement is required for people to be tax filer.

[nfssaad]

please check, the form now is remarkably different than the link you sent.

there are no more + signs for entering different values.

specifically see the left column. its now quite changed.

[pomi_pbs]

Being a tax filer is an amazing experience, first of all this is our basic responsibility to ba active towards system to have trust on us, second while helping people to file tax they always shows fear towards taxation.

There are no taxes or hidden charges over money earned out of Pakistan. We must be truthful with our country by declaring all assets inside or out of the country.

I wish everyone must bring each member of their family even house wife's as filer, this is free and helpful to everyone.

[helpneeded321]

Sir are you freelancer yourself who work for overseas or do you have any thing to support what you have please share much appreciated.

[capsat]

This is how it appears for me

[Nabs]

Above 5 Million Rupees, is there a tax slab or something?

This is something newly added, previously there was no limit. The ordinance doesn't say what happens above 5 million.

[nfssaad]

i had logged in earlier this month and save the draft, it was the same format as yours.

but i was trying to import my previous return, it said to delete this and make new form, so i made new form and now this version is appearing.

this happened within last week.

[Nabs]

Caution be maintained for declaration of property value which shall be as per FBR assessment value of the respective localities. The property valuation table is also available at FBR website.

It should be noted that this only happens when declaring property first time.

[Nabs]

Are you sure you're clicking on "Normal Return" in top menu?

[Einstein]

I have a question. I declared a combined property last year or maybe a year before that on the value at which it was bought many years ago.

Now what should i be doing this year for the same property? Should it be with the same value as shown in last year's return file or show new value as per fbr valuation table and show the increase in asset value as inheritance?

@capsat bhai can also help plz

[capsat]

do not touch that property digits leave it as it is.

[Nabs]

NO, Never change value of property in wealth statement, it will ring alarm bells at FBR and you may get audited.

FBR valuations are for new declaration of property, not old ones. Keep repeating the same value for all future wealth statements until you sell property. Then you show profit as capital gain from immovable assets in tax return.

[Einstein]

Ok thanks nabs and capsat.

Btw. what do u mean by new declaration of property? What would be considered a new and what would be considered an old declaration?

[Nabs]

Let me clarify:
If you bought a new property, you will declare it at the price you bought it, but price should be above or equal to FBR valuations. Once you have declared it, you will repeat same value on future wealth statements until its sold.

Also I would like to mention here, If the property was bought before last tax year but was not declared, then it becomes a lot more complicated as it becomes a hidden asset. You have to declare it on tax year it was acquired on. If you look at last two amnesty schemes, government asked to declare property at current valuations even if you bought it for 1000 rs 30 years ago. This is the main reason people don't become filer, as they will end up paying penalities for hidden assets.