All you should know about Why File Taxes
The biggest question these days often asked is whether to file or not to file?
Let us tell you that it is the most important time from financial point of view. Every person has the query about is it better to pay the taxes or not to do so, some even do not have the basic knowledge of eligible and not eligible criteria – as is the case with most of us. That is the reason we have compiled this article to highlight the features of all the File Tax procedure and criteria, which can be done in a number of ways.
If you are the one who wants to get better services at various government offices and public places. Even if you want to get a new house or even a vehicle at a comparatively lower price. Or even if you want to pay negligibly small amount of withholding tax on your transactions? If your answer to all these questions is in affirmative, then this article has been written for you and you should read it with intense care.
You must Decide Fast, before it is too late!
Indeed, some decisions have to be took fast and in time otherwise their efficacy demolishes with time. Same is the case with the moment of decision in Tax File perspective. 30th November 2018 is the last day for filing tax returns and you must decide before it is too late to submit. Here we are providing you with a brief comparison of taxes and duties along with their pros and cons you may face during all that procedure of tax filing and submission of returns.
ATL (Active Taxpayer List)
According to it name of the tax filer will be included in the active tax payer list.
In case if you are a non-filer then your name will not be included in the ATL for the entire year.
Withholding Tax (WHT)
If you are a filer then you will have the luxury of halve WHT. On the other hand, a non-filer will have to pay 1.5-2 times the taxes as per rules and regulations.
In the same way a filer will have to pay nothing in case he immovable property. But a non-filer will not be able to even buy an immovable property worth more than PKR 5 million. It is a great benefit for those who are potential investors in the real estate sector.
Benefits for Importers
In that case too, a filer will have much more benefits as per imports of raw material and goods. A filer will have to pay just 5.5% in the form of taxes. On the other hand, commercial imports would certainly require 6% of taxes to be paid.
The non-filer will suffer here too, in case of raw material imports the tax to be paid will be 8%. Also, the commercial imports would fit 9% in the form of taxes.
Same is the case in terms of Dividends where a Filer will be taxed just 12.5% on his or her dividends, but the Non-filer will have to pay tax of 15% on all his dividends.
Banking and Saving Schemes for Filer and Non-Filer
Even the Banking transactions and various Saving Scheme profits would also be affected by the filer and non-filer classification. The filer will just be taxed an amount of 10% on all such transactions and profit schemes but the Non-filer will instead be taxed at a ratio of 15%.
In the same way the following rules may apply on the conditions stated along with:
- Supply of goods to government and companies will be taxed at 4.5% for filers and 9% for non-filers.
- The contracts for filers would be taxed at 7.5% and at 15% for non-filers.
- Prize bond winnings will be taxed at 15% for filers and 25% for non-filers.
The above detail sums up all the difference between filers and non-filers along with the benefits associated with Filers and loss to be faced in case of non-filers. If you have any further queries in that regard, Rightdeed’s comments section is always open for you.