Filing of annual income tax returns is mandatory for individuals, AOP’s and Companies who fulfill certain specific criteria under relevant provisions of Income Tax Ordinance. 2001 and it is also legal and moral obligation for citizen of a state to pay their income tax obligations and and file income tax return within stipulated time allowed by law. when a person files income tax return within due date he can avails benefits after getting status of income tax filer status active while a person having status of non filer cannot avail following benefits under law.
Relief on Sale and Purchase of Immoveable Property
Advance tax on purchase of immoveable property under section 236K of Income Tax Ordinance is 3% whereas advance tax on late filer is 6% and advance tax on Non Filer is 9%. in case of sale of immoveable property advance tax on sale will be charged at 3% for filer whereas on late filer advance tax will be charged at rate of 6% and non filer have to pay advance tax at the rate of 9%. in this context we can say that on sale and purchase of immovable property a non filer will pay 200% advance income tax as compared to non filer.
Relief on Banking Transaction in case of cash withdrawal
A person having the status of income tax filer don’t pay any advance income tax on cash withdrawal from bank while non filer will pay advance income tax at the rate of .06% on transaction exceeding limited of Rs. 100,000/-.
Relief on Profit on Debts from Bank
A person having the status of income tax filer will pay 15 percent on profits from saving accounts in bank whereas non filer will pay 30 percent tax on profits from bank accounts. the rate of advance tax on profit on debts for non filer is 100 percent greater than a filer person.
Relief on payment of supplies of goods to Government and private institutions
when a person provides supplies to Government, NGO’s or any other private institutions they will deduct withholding tax at rate of 5.5% in case of Individual and AOP and 4.5% in case of company whereas non filer will have to pay 11% tax in case of individual and AOP and 9% in case of company under section 153 (1) of the Income Tax Ordinance. 2001
Relief on tax on Payment of services to Government Organizations, NGO’s and Private Institutions
A person having filer status will have to pay advance income tax on services at the rate of 11% for individual and AOP’s whereas in case of company advance income tax will be 9% whereas person having status of non filer will have to pay advance income tax at the rate of 22% in case of individual and AOP and in case of company advance income tax on services will be 18% under section 153 (1) (B) of the Income Tax Ordinance. 2001.
Relief for Government and Private Contractors
where a person provides certain services and supplies under any contract he will have to pay advance tax at the rate of 7.5% in case of filer and where a person is non filer he will have to pay advance income tax at the rate of 15% on payment against contracts under section 153 (1) (c) of the Income Tax Ordinance. 2001.
Relief on Imports
A person having status of income tax filer will pay advance tax at the rate of 5.5% whereas a person having status of non filer will have to pay advance income tax at the rate of 11% on imports under section 148 of the Income Tax Ordinance. 2001.
Relief on Payments of Dividends
A filer person will pay advance income tax at the rate of 15%on payment of dividends where a non filer person have to pay advance income tax at the rate of 30% on payment of dividends under section 150 of the Income Tax Ordinance. 2001.
Relief on Prize Bonds, lottery, Quiz and Sale promotions
A filer person will pay advance income tax at the rate of 15% on payments of Prizes on winning of lotteries and Quiz whereas a non filer will advance income tax at the rate of 30% on payment of prize bonds and other winnings under section 156 of the Income Tax Ordinance. 2001.
Relief on Brokerage and Commission
Advance income tax on payment of brokerage and commission will be charged at the rate of 12% for individual and AOP and 8% in case of company whereas the person having non filer status will pay advance income tax at the rate of 24% in case of individual and AOP and in case of company 16% under section 233 of the income Tax Ordinance 2001.
Relief on Function and Gatherings
A filer will have pay advance income tax the rate of 10% whereas the non filer person will have to pay advance income tax at the rate of 20% under section 236CB of the Income Tax Ordinance. 2001.
Relief on Purchase of Motor vehicles
Advance tax on purchase of motor vehicles for a filer person will be charged 2% on the invoice value of car where a non filer will pay 4% advance tax on purchase of car on invoice value of car.
Relief on Sale of Motor Vehicles
in case of sale of motor vehicle advance income tax is charged on the basis of engine capacity which is mentioned in section 234 of Income Tax Ordinance. 2001 and the tax on non filer is double as compared to filer in case of sale of motor vehicles.