Do I need to file a return if my income is below 600,000 PKR?

Question

My total annual earnings are less than the taxable limit, but people tell me I should still file to avoid higher taxes on banking transactions, so I'm asking if it's legally mandatory or just optional.

Answer 1

If you already have an NTN or any property or vehicle in your name, then filing a tax return is mandatory — otherwise, it’s technically optional if your income is below the taxable limit.
Yes, withholding tax on cash withdrawals applies only to non-filers.
If you want to avoid this, you can either become a filer.
Or simply keep daily cash withdrawals below Rs50,000, in which case no tax is deducted.
Being a filer also helps you avoid higher taxes on banking and other transactions.