Don't Get Lost in the Balance Sheet Maze: Who Can Skip?
This article clarifies who is exempt from submitting a balance sheet, a topic causing confusion for many. Here's a breakdown:
Who Can Skip the Balance Sheet:
- Salaried Individuals: If your income solely comes from a salary, you don't need to submit a balance sheet.
- Rental Income Receivers: Property income doesn't require a balance sheet submission.
- Bank Deposit Holders: Interest earned on bank deposits doesn't trigger the balance sheet requirement.
- Unregistered Manufacturers: Small-scale manufacturers who aren't registered don't need to submit one.
- Shareholders in Private Companies: Companies with multiple shareholders don't need to submit one.
- Dividend Income: Dividends earners?don't need to submit one
- Unregistered Businesses: Cottage industries, unregistered retailers, and businesses not registered with sales tax are exempt.
The Reason Behind the Rule:
The Federal Board of Revenue (FBR) introduced this rule to combat fake invoicing. Businesses were inflating their income through fabricated invoices to avoid taxes. The balance sheet requirement aims to provide a more accurate picture of a business's financial health.
Deadline:
The due date for filing of the balance sheet is April 06, 2024
Stay tuned for further insights!