Every year, salaried individuals in Pakistan need to file their income tax returns. A crucial document required for this process is the Employer’s Deduction Certificate, also known as Employer’s Certificate (EC). This article explains what information your EC should contain for the 2024 tax year.
What is an Employer’s Deduction Certificate?
- An official document issued by your employer after the end of the tax year (usually June 30) ,if employer does not share that voluntarily seek it specifically after financial year end.
- Details all taxes deducted from your salary throughout the year.
What Information Does the EC Include?
- Your Details: Your name, employee ID, and National Tax Number (NTN).
- Employer Details: Your employer’s name and NTN.
- Salary Breakdown: Gross salary, deductions made for taxes like income tax and social security, and your net taxable income.
- Tax Deducted: Total income tax withheld from your salary during the year.
- Tax Adjustments: Any withholding taxes adjusted against salary or any reimbursements made.
- CPR Number: Tax deducted and paid by your employer on your behalf
Why is the EC Important?
- Proof of Tax Paid: The EC serves as evidence of taxes deducted at source by your employer.
- Accurate Tax Return Filing: The information in the EC helps you accurately calculate and report your taxable income.
What to Do if You Haven’t Received Your EC?
- Contact HR Department: Reach out to your employer’s Human Resources department to inquire about your EC.
- Legal Requirement: Employers are legally obligated to provide you with an EC after tax year’s end.
Remember:
- Keep your EC safe for tax filing purposes.
- If you have any questions about your EC or tax filing, consult a tax professional.
