A tax mainly refers to the sum of money charged by the Government at specified rates in place of the various services delivered. Taxes govern the basic means of returns for the Government.
If we look at the term ‘Tax Planning’, we can say it’s a basic legal route for reducing tax liability.
To summarize, Tax Planning is a methodical exercise which takes place within the scope of law to lessen one’s tax liability with the prime use of available freedoms, deductions, reliefs and grants. Since tax planning occurs within the structure of the legal provisions, a Taxpayer is rightfully allowed to organize his affairs in a manner which can reduce tax liability to the least.
Major life-changing situations and your taxes
Life goes on and while it takes turns, the set of tax rules associated with it also fluctuates. This is the reason life events hold such great importance. It makes you alert to new opportunities and cautions you to avoid the downsides as your life as a taxpayer progresses. That’s why it’s crucial to realize how major life events inflict your tax implications.
What you need to know..
Taxation affects various life occurrences of a common man in Pakistan in every single aspect of life. Whether you are buying a car, re-structuring your home, investing in a property, expanding your business or changing your job; you’ll be affected by the laws governed by the Federal Board of Revenue (FBR) Pakistan.
This is the area where a false step or ignorant move can lead you towards catastrophe. However, it can be easily mitigated by proper taxation planning. Since tax planning has been changed / amended by FBP quarterly or yearly, therefore you should keep updating yourself through FBR Website. It is common practice in Pakistan that people belonging to any class is afraid of the Tax authorities or Tax laws. However, it is common perception among general public as govt. of Pakistan facilitates the general public by providing the Tax facilitation kiosks in major cities of Pakistan.
Only due to this much perception, people; even the educated ones, waste tens and thousands of rupees on tax lawyers and firms without knowing the fact about their Tax declaration and submissions which eventually lead them to civil suites and laws. Therefore it is suggested that you should take the tax authorities as your partner and with faith, trust, honesty, take help of Govt. provided free of cost tax facilitation kiosks.
Submit your tax declaration by yourself. Furthermore you can always take the advice from the FBR helpline at any time throughout the year in any and every aspect of life.
For more information visit www.fbr.gov.pk.
