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It is imperative that salaried individuals recognize tax filing as one of the benefits rather than considering it a cost. The tax deductions made from the salary every month can only translate into savings when the taxpayer file the return of income tax at the end of a financial year. This leads to the inclusion of name in the ATL – Active Taxpayers list.

Once an individual’s name is in ATL, the tax rate significantly reduces. In light of the recent revisions, the government exposes non-filers to double the rate as to that for filers. Apart from the high tax rate, a non-filer also tends to miss the opportunity to claim rebate due to disengagement with the tax planning process. A part from that, non-compliance could also result in penalties.

Given below is a list of taxes rates for filers and non-filers:

  • A filer will only pay 15% capital gain tax on the disposal of securities and shares as compared to non-filer who will pay 30% tax.
  • On cash withdrawal and banking transactions, a non-filer would be charged a 0.6% tax on their transactions above Rs. 50,000/-. Whereas, a filer will be able to make transactions tax free.
  • For general insurance premium, a filer will not pay any taxes but a non-filer will be charged 4% taxes.
  • Buying and selling of immovable property would be taxed at 1% to filers; whereas, 2% will be taxed to non-filers.

The same benefit is also applicable to the purchase of vehicles:

  • A non-filer will be taxed 4% at the time of leasing a motor vehicle, whereas a filer will not be tax rather they will pay the lease amount only.
  • When it comes to withholding taxes on car registration:
    • Filer will pay a range from 7,500 to 250,000
    • Non-filers will pay a range from 15,000 to 500,000
  • For annual car token tax payments:
    • Filers will pay a range from 800 to 10,000
    • Non-filers will pay a range from 1600 to 20,000

The tax rate on investments and savings is also reduced for filers:

  • A filer will be charged 15% tax on dividend received while a non-filer will be charged 30% tax.
  • When a filer wins prizes on prize bonds, then they will pay 15% tax and a non-filer will pay 30% tax.
  • For tax profit on debt:
Up to 5 million – 15%Up to 5 million – 30%
From 5 million to 25 million – 17.5%From 5 million to 25 million – 35%
From 25 million to 36 million – 20%From 25 million to 36 million – 40%

Become a filer today to streamline your finances while you save yourself from higher taxes, and penalties. File your taxes using to become a filer within minutes without any hassle.

Hina Ilyas
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