Got a Question? (Financial FAQs)
Our staff has encountered numerous typical questions from our clients while assisting several businessmen, salaried people, companies, and partners in resolving their corporate and functional challenges.
The answers to the following frequently asked questions can be found below:
Your earnings do not correspond to your pay. Other than your pay, you might make money from a variety of ways. According to the Income Tax Ordinance 2001, your entire income might come from work, profit or loss from stock sales (Capital Gain), or business and property. Your gross income is the sum of all of these numbers.
Income from Salary: This category accounts for all of the money you earn while performing your work as a consequence of an employment contract.
Income from property: This category includes rent received or Receivable from the property you own, as well as forfeited deposits under a rental agreement.
Capital Gains Income: Earned through the sale of a capital asset, such as mutual funds or a home.
Income from a business or profession: Earnings or losses resulting from the operation of a business or profession. This category includes freelancers’ earnings.
income from other source: This category includes income from Fixed Deposits and Savings Accounts. This category includes any money that does not fit under one of the other revenue categories.
AWSM is a unique combination of technology and tax expertise to simplify tax filing process. It only takes three steps to get you going with your tax filing.
- Fill out your form on AWSM
- Enter basic information and answer simple questions
- Pay for our services using common payment methods like debit / credit card.
The information required to complete the process is fairly simple, and mainly depends on the sources of your income and type of your financial transactions and assets. Some of the documents that will be handy in answering the questions are as follows:
- Salary Certificate provided by your employer..
- Bank Statement or certificate from the bank showing the profit paid and taxes deducted by the bank, if any..
- Personal utility bills for expenses incurred and advance tax paid.
- Certificate of capital gains and tax thereon, issued by NCCPL against your stock trading activities, if any.
- Statement of investment in mutual funds, if any.
- In case of air travel in business class, copy of air ticket / invoice indicating the amount of tax deducted.
- Certificate of tax deduction provided by your cellular network company in case of post paid connection.
- Invoices issued by educational institutions indicating tax paid, if applicable.
- In case of any vehicle purchased during the year, copy of the registration book / documents issued by the Excise department.
- Property documents for any transactions (purchase or sale) during the year.
Yes. Your employer might have deducted the applicable tax on your salary. However, you should still file your tax return to avoid penal consequences of non-filing and / or paying extra taxes on various transactions levied on non-filers.
Tax filers can take the benefit of various taxes paid by them on various transactions like taxes paid on utility bills, cash transactions, educational fees, business class air tickets, purchase of motor vehicle and properties etc. In addition, filers can also get tax credits for investment in mutual funds and insurance premiums and donations or zakat paid to approved charitable organizations.
A non-filer is also subject to higher withholding tax rates including on bank transfers, motor vehicle taxes, capital gains, dividend income, etc.
Wealth statement has to be filed by a resident individual who is required to file his income tax return. It is simply a statement of your assets and liabilities. In this statement you have to mention the details of all the assets that are in your name or your dependents like your wife and children. Some of the common examples of assets are properties, vehicles, jewelry, cash at bank and saving certificates etc. You are also required to provide details of your personal expenses as part of your wealth statement e.g. rent, Travelling, utility charges, education and other household expenses.
Even if you do not have any assets and liabilities, being a resident individual, you are required to file Wealth Statement showing movement of assets from the beginning of the year on July 1 till end of year on June 30 and reconcile the income earned with expenses incurred during the year.
Yes. If you fail to file your tax return then you could be fined with a minimum penalty of Rs 20,000.
Yes! Your tax information is secured using top security standards and transmitted over secure computer network to ensure the security and confidentiality of your data.