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Income tax filing is done under the tax act, 2001. The ordinance was recently amended upto 30th, june, 2019. The ordinance extends to the whole Pakistan. While all citizens are obliged to follow it, there should be proper understanding for it. For this matter, we have simplified it to help you gaining awareness..


Firstly, you should understand the definition of basic tax terms. There are many terms mentioned in the ordinance, but you don’t need to know all of them. You don’t have to spend lots of time in reading definitions that would be of no use for you. However, we have assembled some of the most used and basic terms you should know..


This list is instituted by the board .This list consists of active tax filers from the previous tax year. The list is published every year on 1st March and it is valid till the last day of February on the next year. For instance, the ATL for 2016 was published on 1st march, 2017 and it stayed valid until the last day of February in 2018. It is updated on every Monday on FBR’s website.

You can download the ATL from here. All the active tax filers are included in the ATL.

If you want to

1) Check your name in the active taxpayer list,
2) Become an active tax payer

We’ll help you doing so. You can get help in the following ways:

1) Live chat
2) Connect on WhatsApp


It is the amount that is used to calculate the taxes owed by an individual or a company to the government. It means the total income that qualifies for deductions and deductible allowances, also reduced by donations.

Taxable income comprises of both earned and unearned income. Moreover, it consists of:

– Wages
– Salaries
– Bonuses
– Tips
– Invested
– Unearned
– Lottery payments
– Debts

Whereas, non-taxable comprises of the followings:

– Gifts
– Inherited
– Welfare benefits
– Meals and lodging
– Child support


This income is obtained without having to work such as dividends, alimony, etc.

You may have many confusions & doubts regarding the tax filing concept. But, we will try our best to make it easier for you to understand tax filing. If you still have any doubts, you can contact us anytime. We would love to educate you regarding taxes.


It is the total sum of all money received by an individual and an organization by multiple income sources. The following are the basic head of income as stated in the income tax ordinance, 2001:

1- Salary
2- Income from property
3- Income from business
4- Capital gains
5- Others


FBR reviews your tax returns to make sure that they are filed accurately, this is known as audit. While filing tax, you have to report your income and deductions correctly. One mistake can lead you to a big problem. This is why you need an experienced tax filer. You don’t have to search anywhere else while Spectrum is here for your tax filing with a 100% guaranteed accuracy!


Whether you have done tax filing or you’re about to do that, you must know that deductions it the most commonly used term for tax filing.

A deduction lowers the tax liability of an individual by reducing his total income. For instance, if you earn 120,000 Rs per year and you are eligible for a tax deduction of 10,000 this means that you’ll be taxed on the 110,000 of your income. Consequently, deductions will save you money. You can claim as many deductions as you are eligible for it e.g. you can also claim tax deduction on the charitable income.

But, claiming deductions in an inappropriate manner will lead you to a tax audit, longing the process. So, make sure that while you are claiming deductions, all your documentations are prepared accurately.


Resident means how you are taxed; basically it is the tax status of an individual or a company.

According to the income tax ordinance, an individual is resident for tax filing if he is included in any of the followings:.

1- Living in Pakistan for 183 days or more in the current tax year.
2- Living in Pakistan for 120 days or more in the current tax year and rohas been in Pakistan for 356 days and more in the last 4 years.
3- Is an employee of government, federal or provincial, who has been posted abroad in the current tax year.
An association of person (AOP) is resident for tax filing if the control and management of its affairs is situated in Pakistan in the current tax year.

A company is resident for tax filing if it is included in any of the following.

1- It is incorporated in any law applicable in Pakistan
2- The control and management of the affairs is situated in Pakistan in any time of the year in the current tax year.
3- It is a part of the federal or provincial government.
Therefore, a non-resident is exactly the opposite of a resident tax filer.


According to the income tax ordinance 2001, some of the basic heads of income are:

1- Salary which is received for employment
2- Dividends by resident incorporation
3- Property or rental income
4- Pension or annuity paid
5- Salary by federal, provincial or local government.

The entire above mentioned source are part of PAKISTAN INCOME SOURCE. Hence, foreign income sources are the ones that are not included in the list.

These all were the basic tax filing terms all the individuals should know. Before doing anything, if you have proper knowledge, there is a less chance of being fooled by anyone. That’s why we want you to be fully aware regarding taxes.

If you have any questions regarding income tax, we are always there to listen, understand, and answer. You are just a call away.

If we’re missing out on anything, or if you have more queries, you may contact us anytime via,

1- Live chat
2- Facebook
3- WhatsApp
4- Email (support@spectrum-consultancy.com)

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