Latest Post

Review Of HubSpot Marketing Hub How to Generate New Content Ideas “Is Freelance Digital Marketing worth it?” How to make a Budget for Google Ads What is Reverse Video Search? What is Google Project Magi?

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:
FilerNon-filer
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 Befiler.com to become a filer within minutes without any hassle.

Hina Ilyas
Follow me
Latest posts by Hina Ilyas (see all)