21/05/2025
Tax Saving Tips for Salaried Individuals in Pakistan
Claim Advance Taxes & Tax Credit Adjustments Before Year End
As the financial year draws to a close, now is the time for salaried individuals to review and adjust their tax liabilities. If you've incurred any advance taxes or are eligible for rebates/credits, it’s crucial to notify your employer before the May and June 2025 payroll is processed.
Many salaried individuals are unaware that they can request adjustments by submitting an IT-3 Form along with supporting evidence to their employer.
Examples of Adjustable Advance Taxes:
You may be paying advance taxes unnecessarily if you’re not adjusting them against your salary tax. Here are common areas where advance tax is deducted and can be adjusted:
Cash Withdrawals from Banks – Section 231AB
Vehicle Registration or Transfer – Section 231B
Private Vehicle Token Tax – Section 234
Telephone, Mobile, and Internet Bills – Section 236
Sale or Transfer of Immovable Property – Section 236C
Purchase or Transfer of Property – Section 236K
Foreign Transactions via Debit/Credit Cards – Section 236Y
Electricity Bills (e.g., KE) – Section 235 (applicable in case of non-filer owner/tenant when monthly bill exceeds Rs. 25,000)
Tax Credits You Can Claim
Charitable Donations – Section 61 (some corporations don't allow this to be adjusted so you need to confirm this from your employer)
Contribution to Approved Pension Funds – Section 63
What You Should Do:
Review your tax profile
Collect evidence of advance tax payments or eligible credits
Submit the IT-3 Form to your employer before June payroll processing (in some corporations this form is not required and they only require you to provide supporting documents)
Why pay more when you can save smartly?
Make the most of your income by ensuring you aren’t overpaying taxes due to unclaimed adjustments. Take action now and keep more of what you earn. Feel free to contact me if you have any queries.
S&A Tax consultant
03343155272
31/08/2024