How to become Active Tax Filer in 2024

How to become an active tax filer in Pakistan in 2024. Becoming a tax filer is beneficial to all citizens who earn taxable income in Pakistan, earn foreign income, or receive remittances from abroad. The reduced tax rate also applies to active taxpayers on the purchase or sale of real estate, automobiles, etc. and on investment gains in financial institutions.

Moreover, if the account holder is an active tax payer, cash withdrawals from banks are not taxable (Currently, if the cash withdrawn from a bank exceeds Rs. 50,000 in a day, then the tax is 0.6%).

So here you’ll know that how you can become an active tax filer in Pakistan in 2024.

Become an Active Tax Filer in Pakistan

As of today in December 2023, if someone wants to be an active tax filer with FBR, then file tax return for tax year 2022 (financial year from July 1, 2021 to June 30, 2022) along with amount of penalty after submission of tax return.

The penalty for being an active tax filer in Pakistan is payable after filing the tax return and is Rs 1,000 for employees/individuals and sole proprietor and Rs 10,000 for partnership companies and AOPs.

Further, he is applicable to private limited companies registered with SECP under the Companies Act, 2017, Rs. 20,000/-.

Moreover, tax return for tax year 2023 (for the financial year from 1st July 2022 to 30th June 2023) has also become due and last date was 31st October 2023 for filing of tax return for tax year 2023.

Want to become a Tax Return Expert? Get the Tax Return Master Course today.

It means currently along with submission of tax return for tax year 2022 a taxpayer has to file tax year 2023 tax return also. Only he has to pay penalty for tax year 2022 now and penalty for tax year 2023 will become due on 1st March 2024.

From 1st March 2024 onward if anyone wants to become tax filer then he has only to file tax year 2023 tax return along with penalty at prescribed rates.

One thing you should kept in mind that every year list of active tax filers is issued on 1st March and on the same day the next year becomes applicable for becoming active tax filer in Pakistan.

This means if you want to be an active tax filer in 2024, you must file your 2022 tax return with penalties by February 29th . Additionally, from March 1, 2024, taxpayers will be required to file tax returns for tax year 2023, along with penalties for active tax returns in Pakistan.

This means that if you became a tax filer by February 28, 2025, your tax return for the 2023 tax year is still valid.

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