A “tax assessment” is FBR‘s determination of how much tax you owe for a given year — and understanding how it actually works (not the vague version) matters, because most assessments happen automatically and only become a problem if you don’t know what to check. Self-Assessment (Section 120) — The Default for Most Filers When … Read more
“Tax year” in Pakistan doesn’t always mean the calendar year you’d assume — and getting it wrong affects which return period your income actually falls into. What Is a Normal Tax Year Under Section 74 of the Income Tax Ordinance, a Normal Tax Year runs from July 1 to June 30 and is named after … Read more
Every year we get some version of “where does my tax money actually go” from clients — a fair question, and one worth answering honestly rather than with a vague civics-textbook answer. The Federal Consolidated Fund Tax revenue collected by FBR (income tax, sales tax, customs duty, federal excise) goes into the Federal Consolidated Fund, … Read more
A private limited company is the structure most growing businesses in Pakistan end up choosing, registered through SECP — limited liability for shareholders, easier access to investment, and a cleaner path to scaling. Here’s what registration actually involves through SECP. Step 1: Reserve Your Company Name Check name availability and reserve it through SECP’s online … Read more
Withholding tax on profit — the tax deducted at source on profit on debt, most commonly bank profit/interest — is one of the most misunderstood deductions on a Pakistani bank statement. Whether it’s a final tax or just an advance payment against your annual liability depends entirely on whether you’re a filer, and on how … Read more
Below is an illustrative example of what this type of notice looks like — not a real case, figures changed for illustration. SUBJECT: SHOW CAUSE NOTICE FOR BEST JUDGMENT ASSESSMENT U/S 121(1)(d) READ WITH 121(1)(ab) OF THE INCOME TAX ORDINANCE, 2001 – TAX YEAR [Year] Please refer to the subject cited above. This office has … Read more
Notice to submit information on questionnaire by DNFBP as per AMLA/CFT – (Real Estate) NOTICE TO REGISTER UNDER SECTION 6A(2)(A) OF THE ANTI MONEY LAUNDERING ACT, 2010, READ WITH SRO 924(I)/2020 DATED 29TH SEPTEMBER, 2020. Whereas it has been ascertained that as per available record, you are liable to be registered as a Designated Non-Financial … Read more
A 182(2) notice means FBR believes you didn’t file a required return and is proposing a penalty for it — here’s what it actually means and how to respond. What Triggers a 182(2) Notice Under Section 114 of the Income Tax Ordinance, certain people are required to file an income tax return — and if … Read more
If you need proof of tax deducted on your PTCL bill — for your income tax return, a withholding tax adjustment, or just your own records — here’s how to actually get it. Why You’d Need a PTCL Tax Certificate PTCL, like other telecom and utility providers, deducts advance tax on your bill under the … Read more
A partnership firm is one of the simpler business structures in Pakistan — faster to set up than a private limited company, but with a real tradeoff: partners carry unlimited personal liability for the firm’s debts, unlike a company’s limited liability. Here’s how registration actually works. Step 1: Draft a Partnership Deed This is the … Read more
