Big Relief for Salaried Employees

ISLAMABAD: Salaried employees across Pakistan could receive significant tax relief following intervention by Federal Board of Revenue (FBR) Chairman Rashid Mahmood Langrial over advance income tax notices issued to workers whose only source of income is their monthly salary.

According to reports, the FBR chairman has directed that advance income tax deducted or collected from eligible salaried individuals be adjusted immediately, while clarifying that employees relying exclusively on salary income should not be asked to pay advance income tax under the circumstances described.

The move follows complaints that salaried employees across the country had been receiving quarterly advance income tax notices despite having no additional sources of income.

FBR Takes Notice of Tax Notices

Sources said the FBR chairman intervened after notices were reportedly issued to employees whose sole source of income was their monthly salary.

The notices had raised concerns among salaried individuals, who questioned why they were being asked to pay advance tax despite having no rental income, business earnings or other independent sources of income.

Langrial reportedly directed the relevant authorities to address the issue and ensure that tax demands were handled in accordance with the applicable tax laws.

Who Will Benefit from the Relief?

According to the reported directives, individuals earning exclusively through monthly salaries should not be required to pay advance income tax in the circumstances outlined by the FBR chairman.

However, individuals who receive income from additional sources, such as rental properties, businesses or other taxable activities, may remain liable for advance tax where the relevant legal requirements apply.

The distinction is intended to address cases in which salaried employees were reportedly receiving tax notices despite having no income beyond their employment earnings.

Advance Tax to Be Adjusted

Sources said advance income tax already deducted from affected individuals would be adjusted immediately.

The adjustment is expected to provide relief to eligible employees who faced additional tax demands despite relying solely on their monthly salaries.

However, the precise mechanism and scope of the adjustment, including whether affected individuals must submit applications or supporting documents, were not detailed in the available report.

ALSO READ: Big Relief for Salaried Class as Government Cuts Income Tax Rates