Filing your tax return for the first time can be daunting, but understanding the key steps can make it much easier. Here are five crucial things to remember:
1. Verify your NTN registration and date:
- Check your NTN registration date: This is usually created when you get a job or register for tax purposes. Visit the FBR website and enter your CNIC number to find your registration date.
- Know how many returns you need to file: If you’re late, calculate how many previous years’ returns you need to file (e.g., if registered three years ago and received a notice in 2023, file for 2021 and 2022 as well).
2. Gather accurate data:
- Track your closing and opening balances: Ensure your closing balance in 2022 matches the opening balance in 2023 to avoid future discrepancies.
- Collect financial information: Gather details like income, bank statements, asset purchases (property, cars, gold), and any transfer fees related to these assets.
3. Verify your MIS data:
- Review your tax payments : Check the FBR website or mobile app to ensure all details match your records.
- Cross-check asset information: Verify that your asset details on the tax portal are accurate and complete.
4. Report asset details accurately:
- Declare assets at purchase value: If you paid for an asset at a specific value, report that value instead of zero, even for inherited property.
- Report transfer fees if applicable: Include any fees paid during asset transfers.
- Use “zero report” option carefully: Only use zero value if you genuinely don’t have any data.
5. Understand gold reporting and capital gain tax:
- Don’t undervalue gold: Report gold at its market value to avoid paying higher capital gain tax later.
- Mention purchase date and value: Report the date and value of purchase to accurately calculate capital gain.
Remember:
- Taking time to file accurately reduces future complications and minimizes your tax burden.
- Consult a tax professional for personalized guidance if needed.
By following these steps and utilizing the available resources, you can ensure a smooth and successful first-time tax return filing experience.
