Documents required for NTN Registration for Salaried person: 

1. Copy of CNIC
2. Copy of recent paid electricity bill
3. Your latest payslip
4. Mobile number and email 
5. The National Tax Number (NTN), name, office address, and valid email address of your employer.

NTN Registration for a Salaried person:

Pros:

• Legal Compliance:

  It fulfils your legal obligation as a taxpayer if your income exceeds the taxable limit, ensuring adherence to the Income Tax Ordinance, 2001. Currently, this threshold is an annual income of PKR 600,000 or more.

• Becoming a Tax Filer:

  Registration is the first step to becoming a tax filer, which comes with several advantages.

• Lower Withholding Tax Rates:

  Filers generally benefit from significantly lower withholding tax rates on various financial transactions, such as bank profits, cash withdrawals (above a certain limit), and property/vehicle registration and transfer.

• Tax Refunds:

  Having an NTN enables you to file income tax returns and claim refunds if excess tax has been deducted from your salary.

• Easier Access to Financial Services:

  Banks and other financial institutions often require an NTN for opening accounts, applying for loans, and other financial activities, as it serves as a proof of your financial standing and compliance.

• Financial Credibility:

  Being an NTN holder and a tax filer enhances your credibility as a responsible citizen.

• Avoid Penalties:

  Non-compliance with tax laws, including not registering for an NTN when required or not filing returns, can lead to penalties and legal consequences.

• Participation in the Formal Economy:

  It formalizes your financial activities and contributes to a transparent and regulated economic environment.

• Potential Future Benefits:

  An NTN might be required for various future financial transactions or government schemes.

Cons:

• Obligation to File Tax Returns:

  Once registered, you become obligated to file annual income tax returns by the specified deadline, even if your tax liability is zero.

• Need for Accurate Record-Keeping:

  You'll need to maintain accurate records of your income, deductions, and any other relevant financial information for filing tax returns.

• Potential for Tax Liability:

  While tax is often deducted at source for salaried individuals, you might still have additional tax liability depending on other income sources or specific tax rules.

• Complexity of Tax Laws and Filing Process:

  Understanding and complying with tax laws and navigating the online filing system (IRIS) can be complex and may require time and effort.

• Possible Penalties for Late Filing or Errors:

  Failure to file returns on time or submitting incorrect information can result in penalties.

• Increased Scrutiny:

  While being a filer has benefits, it also means your financial activities are under the purview of the FBR, potentially leading to scrutiny if discrepancies are found.

In summary, while NTN registration for salaried individuals in Pakistan comes with the responsibility of filing tax returns and maintaining records, the benefits of legal compliance, lower tax rates, and enhanced financial credibility generally outweigh the drawbacks, especially for those with income above the taxable threshold.