Statement of income during the income year

In second section you have to provide your total income during the income year 2016-17 which is known as statement of income.

As you are a salaried person so you have to calculate your total taxable income for the income year.

Guess you are able to calculate total taxable income and tax liability. After deducting exempted amount from your salary income you have to write only the figure come out as total taxable income in the first income line.

If you have house property or agricultural land then you may have income from those income sources. And here some admissible expenses have to be deducted to find out the taxable income under the mentioned two heads of income.

After deducting eligible exempted amount only the net taxable income should be provided under the head of income from house property and agricultural income.

If you have no house property or no income from agricultural income then the places will be not applicable for you and write down N/A.

Guess you have income from other sources. You may have invested or donated in eligible criteria like purchase of savings instrument, shares or bank deposits. And from there you may have received interest or dividend during the year. Total income from other sources has to be accumulated to write down in a single amount under the head income from other sources.

You have received net amount after deducting applicable tax at source but you have to write gross amount.

You will get total taxable income after adding all the above sources of income and have to write under serial 5 total income.

Now you have to calculate tax liability on this total taxable amount by applying applicable rates and the figure should be provided under tax leviable on total income under serial number 6.

Guess you have heard about tax rebate. It reduces the tax liability significantly. But you have to invest in the certain areas as mentioned in the sixth schedule part B of Income Tax Ordinance 1984.

If you have investment and donation under the eligible areas as mentioned in the above schedule then you have to calculate tax rebate on that amount. After calculating the tax rebate write down in the column under serial 7 tax rebate.

So we have got almost all the figures.

Under serial 9, tax payable will be the difference between two amounts of total tax liability and tax rebate. And this is the total tax liability for the income year which is required to pay to the NBR.

Below this line, you have to mention the tax payments amount. Monthly salary has been transferred to your bank account by the accounts/HR people after deducting tax at source by them. As you have already paid tax on source to NBR so total deduction during the year from salaries and any other deduction as tax will be write down here.

After deducting the tax at source from total tax payable you will get net tax liability and this is the amount now you have to pay with return of income.

So you have completed all the places in this page.

Now you will see the following declaration under the heading verification where you have to declare and sign below this declaration with date and places:

I, ……… , father/husband:…….. , TIN:…………. solemnly declare that to the best of my knowledge and belief the information given in this return and statements and documents annexed herewith is correct and complete.

So please be careful!

Remember all the income and require information is provided correctly and completely. If taxmen could discover any evasion or any incorrect and incomplete information then legal consequences may arise.

Below this statement you have to mention the require documents you will attach with return of income under enclosure section.

That’s all are in second section of your return of income.

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