The tax year is 1 July through 30 June.
If the employer has filed an annual statement of withholding of taxes, the employee is not required to file a return of income, provided there is no other taxable income. An employee who wishes to file a return of income is required to file it only on a fiscal year basis (1 July through 30 June).
Every resident taxpayer is required to file a wealth statement along with the return of income if taxable income exceeds PKR 1 million. Note that the Commissioner can also require any person to furnish the said statement. Salaried individuals with income in excess of PKR 500,000 are required to e-file the return of income.
All individuals are required to file their return for the year ended 30 June by 30 September, except salaried individuals with income in excess of PKR 500,000, who are required to file the return by 31 August.
Payment of tax
Income tax is withheld from salaries by the employer. The amount to be withheld is determined by applying to the salary the average rate of tax on the estimated income of the employee for the fiscal year.
Advance tax is payable in four instalments if taxable income is in excess of PKR 500,000.
Statute of limitations
A tax return can be audited any time within six years of filing.
Topics of focus for tax authorities
The tax authorities mainly focus their attention on taxpayers other than salaried individuals.