For Muzaffarabad residents, the FBR return covers income and property connected with Pakistan proper. This page explains what to include.
A Civil Servant with a Flat in Islamabad
A typical Muzaffarabad case: an officer of the AJK government, salaried and taxed under AJK's system, who has bought a flat in an Islamabad housing scheme and rents it out. The rent is income from Pakistan proper and goes in an FBR return. Expenses allowed against rent under the law for the year are deducted, and any tax withheld by a company tenant is claimed. The salary itself is mentioned only so that the wealth statement balances.
Doctors and Engineers Paid from Pakistan Proper
Professionals employed by federal bodies, NGOs or companies headquartered in Islamabad copy their salary certificate into the FBR return and claim the tax withheld.
Contractors After the Earthquake and on Hydropower Projects
Contractors paid by federal agencies or Pakistani companies list each payment, the tax withheld and their costs of labour, materials and machinery.
Grants for Rebuilding
Reconstruction grants received after the 2005 earthquake, and any later disaster assistance, are receipts rather than income.
The Wealth Statement
The house in Muzaffarabad, land in the villages up the Neelum or Jhelum valleys and the flat in Islamabad are all listed.
Filing Late
A late FBR return is still accepted, but the surcharge is needed to appear on the Active Taxpayers List.
Bank profit earned in Pakistan proper is declared with the bank's withholding.
Also see tax consultant in Muzaffarabad and NTN registration in Muzaffarabad.
Frequently Asked Questions
Do I list my Muzaffarabad house in the FBR wealth statement?
Yes.
Are earthquake grants income?
No, they are receipts.
Is my AJK salary in the FBR return?
It is reported under AJK's system.