Karachi, October 3, 2024 – The Federal Board of Revenue (FBR) has announced the categories of individuals and entities required to file income tax returns for the tax year 2024-25, in compliance with Section 114 of the Income Tax Ordinance, 2001. This notification outlines the obligations for taxpayers across different sectors, ensuring broader compliance with Pakistan’s tax laws and streamlining the country’s tax collection process. Who Must File Income Tax Returns? According to the FBR, the following persons and entities are legally obligated to file their income tax returns: 1. Companies and Individuals Earning Taxable Income: Every company, and any individual (excluding companies) whose taxable income exceeds the threshold defined by the Income Tax Ordinance, is required to submit a tax return. This includes non-profit organizations as per Section 2(36) of the Ordinance. 2. Final Taxation Subjects: Persons whose income falls under final taxation provisions are also obligated to file returns. These taxpayers must report all income subject to taxation and provide relevant documentation. 3. Owners of Significant Property or Assets: Any individual who owns immovable property measuring 500 square yards or more, or a flat in areas within municipal limits, cantonments, or Islamabad Capital Territory, is required to file tax returns. Additionally, those who possess immovable property or flats of similar size in rated areas must also comply with the filing requirements. 4. Motor Vehicle Owners: The obligation extends to individuals who own motor vehicles with an engine capacity exceeding 1000 CC. This stipulation aims to capture those with substantial assets that signify higher income levels. 5. National Tax Number (NTN) Holders: Any person who has obtained a National Tax Number (NTN) is automatically required to submit tax returns. Holding an NTN suggests engagement in taxable activities and income generation, and the FBR mandates compliance from these individuals. 6. High Electricity Consumers: Individuals with commercial or industrial electricity connections whose annual bill exceeds PKR 500,000 must file returns, reflecting their significant business…