KNOW YOUR TAX REFUNDS

The session of tax is upon us. Although the government is shut down currently, the administration has promised us that we will get our tax refunds on time. Appreciate the starry heavens! If you are taking a tax refund, you may be questioning: when will I get it, how much will I get, and what should I do with it. We are going to solve these questions so that you can take advantage of your tax refund and create wealth.

Simpler Pakistan Tax System A tax refund is a compensation to a taxpayer of any excess amount paid to the federal government or a state government. Taxpayers receive a refund as a bonus or a stroke of luck, however, it describes an interest-free loan that a taxpayer makes to the government. In most cases, it is avoidable..

There are several reasons a taxpayer may get a refund of more than a trivial amount of money (or owe more than a trivial amount to the government):

• The taxpayer has forgotten to update this form to reflect a change of circumstances, such as the birth of a child and, therefore, an additional Child Tax Credit Allowance.
• The taxpayer was qualified for tax credits refundable, which reduces the money owed. Most tax credits are not refundable.
• A self-employed or freelancer individual who ought to file quarterly estimated taxes may over-pay before going into the laborious task of writing the deductible charges.

Improving the overall investment climate in the industry. Reduction in compliance cost as no need for multiple record keeping.

A refund can be only demanded if the person has registered their Income Tax Return electronically. A tax return using a manual doesn’t allow you to a refund. The refund amount should be shown in your Income Tax Return. Refund resulting from the Income Tax Return can be asked by filing a separate application. To verify the status of your application, please visit your relevant Regional Tax Office (RTO).The tax refund can further be asked later on after submitting your Income Tax Return however within two years from the date of filing of return (date of assessment) or from the day whence the tax was given, whichever is later. .

But, persons filing Tax Return for Tax year after the defined due date will not be allowed to refund throughout the period the person is not included in ATL and Income Tax authorities will not acquire any liability of compensation for delayed refund for the period the person is not appearing in ATL and such period will not be calculated to compute additional payment for delayed refund.