How to File Income Tax Returns for Freelancers in Pakistan?

How to file Income Tax Returns for Freelancers in Pakistan?

For someone with little or no knowledge of the tax system, doing income tax in Pakistan can take time and effort. It is essential for everyone to declare their income tax correctly to avoid fraud. In this article, we will explain in detail the process of filing an income tax return as a freelancer in Pakistan.

First of all, it is important that you have all the information and documents available in front of you. Here is the information you need to file an income tax return as a self-employed person in Pakistan:

• National Identity Card (CNIC)
• Bank Account Statement for Tax Year for which you want to file Income Tax Return
• Any Tax Credits or Deductions available to you under the prevalent law
• Income and Expenses incurred during such Tax Year

The provisional procedure for Pakistan Self Employed Income Tax Return is as follows:

Step 1: Register for e-Filing

You will need to register as a freelancer. Income tax returns must be filed online through the Federal Taxation Office’s electronic filing system. You must register for electronic information by creating your account by filling in the required information. When registering, you must enter the following information:

• CNIC details
• Mobile number
• Email
• Address

After completing the process correctly, you will receive your login ID, password and PIN on your phone and email. You will need these credentials to access the FBR electronic records.

Step 2: Calculate Your Taxable Income

After entering the electronic file, you must submit a statement. Choosing the tax year you want to do is very important. The next step is to calculate the total income for the tax year. Earnings are the money you earn as a freelancer during the year. You can deduct business expenses and other deductions or tax deductions when calculating your income.

Step 3: Wealth Statement

You will also need to disclose personal expenses and assets received on your behalf or on behalf of your dependents. Unlike business debt, personal debt is not deductible when calculating income tax.

Once your information is complete, you should check your income for expenses and assets for the tax year.

Step 4: File Your Tax Return

After completing the process, you must file an income tax return

Step 4: Keep a Record of Your Tax Returns

Income statements will be audited by the Federal Tax Service. That’s why it’s essential to keep a record of the records and documents you use to prepare your tax documents, such as bank statements, invoices, and related information. All taxpayers must keep records of the above information for at least six years.

The income tax filing process for freelancers in Pakistan may seem complicated, but filing income tax returns is essential to avoid confusion, such as fines, fines, and penalties from the Federal Reserve Bank.