NTN and Active Payer list explained

[cafbilal]

Hello! Everybody,

NTN is a National Tax number issued by FBR on getting registered as a tax payer in Pakistan.

Active Taxpayer list includes individuals who have complied with income tax ordinance 2001. In simple words, you have to submit your Annual Tax returns and wealth statement to get included in the list.

Your NTN number is of no use if you are not on ATL (Active taxpayer list). when you buy a car or pay its tokens, the authorities search on ATL to see whether you are an Active taxpayer.

There are many benefits available for income tax filers that are

1. Your advance income tax is adjusted (withheld on Bank transactions, utilities, mobile Phone, car registration and tokens etc).
2. You are included in active tax payer list. ( Reduced amount of Govt taxation for Fillers. reduced registration and tokens of cars and land acquisitions etc).
3. If the government has withheld more amount than you are actually liable, FBR will refund you the extra amount of tax that has deducted from your payments.
4. You can apply for various Govt tenders like construction and general order suppliers.

( I am a trainee CA and a practicing Tax Consultant in a reputed organization. You can hire my services for a relatively low price if you feel difficulty in getting registered or filling income tax annual return. I only charge according to the benefit you are going to avail of my services. I will plan your tax with compliance of the income tax ordinance )
Contact# 0334-2222604 CAF. Muhammad Bilal
Email CAFBILAL@GMAIL.COM

[nifiii]

I recently paid 75k advanced tax in January on purchasing a new car. But I was able to adjust only 36k with my HR (my tax deduction per month is 6000, so at this rate from January till June I was only able to adjust 6*6000=36000 rupees). The remaining 39,000 will go unadjusted this financial year. What should I do in such a scenario? Where to enter the remaining 39,000 rupees as excess tax paid and then which one would be better; getting a refund from FBR or getting this 39k adjusted from my employer?

[cafbilal]

You have a free option whether to file application for refund under section 171 or you may carry forward the refund for the next two consective tax year.

You should also collect withholding tax deduction certificates from your bank which states the amount of advance tax deducted by your bank on transactions. If you have bought your car through cross banking channel, there must be a material amount of tax deduction on your single transaction.

[lazers]

But the big question is. Do u get the money back ?

[cafbilal]

Yes, When you file an application for refund, the commissioner shall respond to your application within 45 days of time. Commissioner may demand all the supporting documents and evidence of withholding tax and rebates.

The situation depends upon the amount of refund. You have to safeguard yourself by keeping record of all the amounts you mentioned in your income tax return.

[lazers]

Well thats good if they do that as i was told by many active payers that they did not get refund. So i started getting it refunded from my office.

[cafbilal]

if the Department delays your refund, they will pay you a prescribed amount of interest on your refund amount for the days of delay.

Most of the people do not claim refund because they are not sure about their annual return compliance

[capsat]

only exporters GET REFUNDs [ based on political pressures ] all other refunds are ONLY adjustable in annual tax returns.

other then exporters, I have not come across any corporate or indivdual(s) who received any refund from FBR since 2008

[cafbilal]

FBR has refunded excess tax paid by our company during tax year 2015. The problem in getting refund is that you get exposed for an audit. So most of the individuals do not apply for refund under section 170 because audit may give rise to other issues.

Income tax ordinance says:

An application for a refund under sub-section (1) shall be –
(a) made in the prescribed form;
(b) verified in the prescribed manner; and
(c) made within 2[three] years of the later of -
(i) the date on which the Commissioner has issued the assessment order to the taxpayer for the tax year to which the refund application relates; or
(ii) the date on which the tax was paid.
(3) Where the Commissioner is satisfied that tax has been overpaid, the Commissioner shall —
(a) apply the excess in reduction of any other tax due from the taxpayer under this Ordinance;
(b) apply the balance of the excess, if any, in reduction of any outstanding liability of the taxpayer to pay other taxes; and
(c) refund the remainder, if any, to the taxpayer.
(4) The Commissioner shall, within 3[sixty] days of receipt of a refund application under sub-section (1), serve on the person applying for the refund an order in writing of the decision 4[after providing the taxpayer an opportunity of being heard].

[mohsan87]

i never get the refund against all the WHT paid on mobile operator. I am filer from last 5 years and they never refunded me.

BTW refundable amount was around 2,000 rs each year. but all the way It was paid from hard earned money.

[nifiii]

i never get the refund against all the WHT paid on mobile operator. I am filer from last 5 years and they never refunded me.

BTW refundable amount was around 2,000 rs each year. but all the way It was paid from hard earned money.

I had 18k and 13k refundable amount respectively for the last two years. Infact I filed the application too for WHT refund but someone suggested me to stop pursuing it as it would create problems for me in future since I would get on their hitlist for audit.

[mohsan87]

good idea

[Khurramchauhdary]

Hello! Everybody,

NTN is a National Tax number issued by FBR on getting registered as a tax payer in Pakistan.

Active Taxpayer list includes individuals who have complied with income tax ordinance 2001. In simple words, you have to submit your Annual Tax returns and wealth statement to get included in the list.

Your NTN number is of no use if you are not on ATL (Active taxpayer list). when you buy a car or pay its tokens, the authorities search on ATL to see whether you are an Active taxpayer.

There are many benefits available for income tax filers that are

1. Your advance income tax is adjusted (withheld on Bank transactions, utilities, mobile Phone, car registration and tokens etc).
2. You are included in active tax payer list. ( Reduced amount of Govt taxation for Fillers. reduced registration and tokens of cars and land acquisitions etc).
3. If the government has withheld more amount than you are actually liable, FBR will refund you the extra amount of tax that has deducted from your payments.
4. You can apply for various Govt tenders like construction and general order suppliers.

( I am a trainee CA and a practicing Tax Consultant in a reputed organization. You can hire my services for a relatively low price if you feel difficulty in getting registered or filling income tax annual return. I only charge according to the benefit you are going to avail of my services. I will plan your tax with compliance of the income tax ordinance )
Contact# 0334-2222604 CAF. Muhammad Bilal
Email CAFBILAL@GMAIL.COM

can anyone here to guide me that where to inter the access amount of tax paid in previous year to carry it in the later year? every one is talking about Carry forward but no one helping me out or disclosing the code or tab anything he knows

[brownrose78]

@cafbilal @capsat
Please also guide & give details for Overseas Pakistanis who are nowadays earning outside Pakistan; how can they become filer, have NTN & come in ATL list

[capsat]

for overseas Pakistanis' best way out is to contact any income tax lawyer in their home town. So their family members can have ease of access. @pomi_pbs can post some outline help for online registration., but banking and data collection, compiling the expenses etc etc need tricky approach.

an income tax lawyer is like a mid-wife without her help the pain lasts for very long even after the result is achieved.