Get your Money Back from Government


#1

Today was the last date for filing Returns with FBR. I wonder how many of you guys have filed it?

Anyways through the course of filing this return i learned so many things about Withholding Tax or Advance Income Tax.

We can get following of our money back from Government if we file Returns:

- 10% withholding Tax on Mobile Recharges

- withholding Tax deducted on Telephone Bill

- income Tax deducted on Electricity Bill

- withholding Tax deducted by Bank on Transactions above 25K

- withholding Tax deducted on Domestic Air Tickets

- Income Tax paid with Motor Vehicle Tax

- Income Tax paid on Motor vehicle purchase

- Income Tax paid on any Import of Gadgets

there could be more, but thats what i've learned so far.

I know most of above might not apply to you if things are not registered under your name , but i believe some of it can be claimed like mobile phone recharges.

It is not necessary to have an income in order to File Return. You just need an NTN number which you can get if your older than 18 Years.


#2

^ It says we can get it back but I severely doubt anyone will be getting anything back.

I filed the return today and added some advance income taxes relating to mobile phone bills. Not very optimistic about getting it back.


#3

at least we all should start filing.

Read this article from LUMS Adjunct Faculty:

http://economyofpakistan.blogspot.com/2010/02/story-of-incompetence-taxation.html


#4

i don't pay taxes on my own at all nor i ever will in pk, but whatever the govt can fleece me through indirect taxation like my electric bill, telephone bill, petrol , gas and etc. well thats the only way they can rob me of my money only.


#5

[quote=", post:, topic:"]

i don’t pay taxes on my own at all nor i ever will in pk, but whatever the govt can fleece me through indirect taxation like my electric bill, telephone bill, petrol , gas and etc. well thats the only way they can rob me of my money only.
[/quote]

you might be one of those lucky guys who are not ‘salaried individual’. These poor chaps got their income tax deducted at source.


#6

^^^

Bro there is American saying "no taxation without representation", now tell me who is representing us in PK? nobody.

Well I gotta tell you "salaried individuals" really got worst end of the bargain compare to people like me who are in business for themselves. I really feel sorry for these hard working people stuck in "govt salary taxation scam".


#7

@Abdulsami

is it valid for salaried govt employees as well?


#8

For those employees, whose income tax is deducted at source, good news for them is that they can claim their WHT and Income tax deductions at source as well. They just have to give proof (in the shape of tax certificate for mobile phones, copies of PTCL bills, electricity bills, etc.) to their employer/admin depts who are responsible for filing tax returns on their behalf, and they get rebates at source.

In addition, if someone has invested in mutual funds or similar instrument, they also get a rebate of upto 10% of income tax paid, i.e., If I have paid a total of 100,000 tax for the fiscal year, and I have invested 100,000 in mutual fund, I can get back a rebate of 10,000 from the tax paid, so in the end I have to pay only 90,000 as tax. Same procedure apply for the rebate, i.e., at source.


#9

You have given a great information to all of us, Kindly tell us the (of give the link) that how is the detail procedure of claiming this Return.


#10

[quote=", post:, topic:"]

For those employees, whose income tax is deducted at source, good news for them is that they can claim their WHT and Income tax deductions at source as well. They just have to give proof (in the shape of tax certificate for mobile phones, copies of PTCL bills, electricity bills, etc.) to their employer/admin depts who are responsible for filing tax returns on their behalf, and they get rebates at source.

In addition, if someone has invested in mutual funds or similar instrument, they also get a rebate of upto 10% of income tax paid, i.e., If I have paid a total of 100,000 tax for the fiscal year, and I have invested 100,000 in mutual fund, I can get back a rebate of 10,000 from the tax paid, so in the end I have to pay only 90,000 as tax. Same procedure apply for the rebate, i.e., at source.

[/quote]

thats really nice. what is the minimum investment period before we are eligible to make this claim?


#11

i googled a bit and found this explaination:

http://www.igiinvestmentbank.com.pk/news.asp#02

According to that, in order to Claim Tax credit for a Given Fiscal Year, the Investment should be made before 30th June of that Fiscal Year.

This leads me to a question. What if some one made investment days before June 30 and after Filing the Return and claiming Rebate pull out all the investment. Kind of hacking the system


#12

[quote=", post:, topic:"]

at least we all should start filing.

Read this article from LUMS Adjunct Faculty:

http://economyofpakistan.blogspot.com/2010/02/story-of-incompetence-taxation.html

[/quote]

Thanks for sharing the link!


#13

[quote=", post:, topic:"]

^ It says we can get it back but I severely doubt anyone will be getting anything back.

I filed the return today and added some advance income taxes relating to mobile phone bills. Not very optimistic about getting it back.

[/quote]

will we get withholding tax we pay on pretext of our PTCL broadband ?


#14

^ You should.

Will you get it back? I doubt it.


#15

How can you claim WHT on mobile phone credit recharge through prepaid cards? Do you have to save the prepaid cards and submit them as proof to the FBR?


#16

To check your WHT from ufone, u will have to login here.

http://www.ufone.com/login.aspx

and then download the tax payment form which has been deducted by government.


#17

[quote=", post:, topic:"]

We can get following of our money back from Government if we file Returns:

- 10% withholding Tax on Mobile Recharges

- withholding Tax deducted on Telephone Bill

- income Tax deducted on Electricity Bill

- withholding Tax deducted by Bank on Transactions above 25K

- withholding Tax deducted on Domestic Air Tickets

- Income Tax paid with Motor Vehicle Tax

- Income Tax paid on Motor vehicle purchase

- Income Tax paid on any Import of Gadgets

[/quote]

I am not sure as I’ll need to consult income tax “advisers” (now we have on every corner of street) about this new thing, but I heard from a friend (lawyer but tax is not his field) that FBR issued a circular earlier this year in which FBR said that all the withholding tax will be considered as “paid to government” and will not get refund/return to tax payee. Once again, I can’t rely tax matters on one person’s “rumors” unless I see that circular with my own eyes.


#18

[quote=", post:, topic:"]

^ You should.

Will you get it back? I doubt it.

[/quote]

How can we get it back ? Actually phone line is in my father’s name so he fill the tax return.


#19

[quote=", post:, topic:"]

I am not sure as I’ll need to consult income tax “advisers” (now we have on every corner of street) about this new thing, but I heard from a friend (lawyer but tax is not his field) that FBR issued a circular earlier this year in which FBR said that all the withholding tax will be considered as “paid to government” and will not get refund/return to tax payee. Once again, I can’t rely tax matters on one person’s “rumors” unless I see that circular with my own eyes.

[/quote]

wampyr see the below Circular fetched directly from the FBR Website:

Read the things mentioned in the Blue Box.