Tax Benefits for Filers

✅ Major benefits for filers

1. Lower withholding tax and deductions

   • Being on the ATL gives you lower rates of tax deduction at source by banks on both profits and cash withdrawals. (Federal Board of Revenue)

   • Filers pay reduced withholding tax in property transactions, vehicle registrations, dividends, prize bonds etc., compared to non-filers. (C4S Consultants)

   • Example: Property purchase/sale tax, bank transactions, and higher tax burden on non-filers are well documented. (Pak Tax Calculator)

2. Improved tax slabs / relief for salaried class

   • Under the Budget/Finance Act for FY 2025-26: the exemption threshold remains Rs 600,000 for salaried individuals. (Business Recorder)

   • Tax rates for certain income slabs for salaried persons have been reduced (for example: income from Rs 600,001 to Rs 1.2 million gets rate of ~1% instead of higher earlier). (The Express Tribune)

3. Reduced tax burden on major transactions

   • For property and vehicle transactions, being a filer typically means lower advance tax/withholding tax and lower surcharge compared to non-filers. (Pak Tax Calculator)

   • Filers also get favourable treatment when buying/selling securities, paying dividends, or being dealt with by financial institutions. (Federal Board of Revenue)

4. Eligibility for government contracts / tenders / benefits

   • Some government and institutional tenders, registrations, and benefits are preferentially given to filers listed on the ATL. (UnionDevelopers)

   • Being a filer strengthens your financial profile when dealing with banks, applying for loans, or engaging in big transactions. (Pak Tax Calculator)

⚠️ Important caveats & things to watch

• Just filing the return doesn’t automatically guarantee all benefits — you must be on the Active Taxpayer List (ATL) and compliant with the filing deadlines and legal obligations. (Federal Board of Revenue)

• The benefits vary depending on type of transaction, category of taxpayer, and whether you are filer vs non-filer. Rates and advantages may change each budget/finance act.

• Some benefits are conditional: e.g., the lower rate on bank withholding or property purchase requires the filer status and may require additional documentation or proof of filing.

• Tax slabs and rates are updated for TY 2026, and while the document summarises reliefs, taxpayers should check full legal text of the Finance Act 2025 and relevant rules/circulars. (FBR Download)

📝 Take‐away for your situation on taxguidepk.com

If you are registered filers (and ideally on ATL) for TY 2026:

• Make sure your name appears on the ATL.

• Ensure your returns for prior years are filed, if required.

• Take advantage of the lower withholding and favourable tax treatment on big transactions (property, vehicles, bank profits, dividends).

• For salaried clients: check that their tax withheld by employer matches the new slabs and reliefs for 2025-26.

• If you are non-filer or late-filer: understand you may face higher tax rates, higher deduction at source, and reduced transaction benefits.