This article clarifies who is exempt from submitting a balance sheet in Pakistan, following a recent SRO 350(2024)(Statutory Regulatory Order). Due date for filing of balance sheet is April 06, 2024. Here’s a breakdown:
Exempt Businesses:
- Salaried Individuals: If your income solely comes from a salary, you don’t need to submit a balance sheet.
- Rental Income Recipients: Owning rental properties and receiving income doesn’t require a balance sheet.
- Bank Deposit Holders: Interest earned from bank deposits doesn’t necessitate submitting a balance sheet.
- Unregistered Manufacturers: Small-scale manufacturers who aren’t registered don’t need a balance sheet.
- Company: Companies with multiple shareholders (public companies) are exempt.
- Income From Dividend: Earning income from dividend on shares are exempt.
- Unregistered for Sales Tax:Â unregistered businesses like cottage industries or small retailers are exempt.
The Rationale Behind the Rule:
The FBR (Federal Board of Revenue) aims to curb fake invoices and ensure accurate income reporting. Some businesses inflate their income through fabricated invoices, leading to tax evasion. This rule creates hurdles to discourage such practices.
Conclusion:
Understanding these exemptions helps individuals and businesses determine their obligation regarding balance sheet submission. Stay tuned for potential future updates on mandatory balance sheet requirements.
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