Taxation according to a person's ability to pay is universally accepted principle, and NTN Registration income is considered a satisfactory though not a sufficient index of such ability to pay. Income Tax is, therefore, generally recognized as a highly equitable form of taxation. A tax levied on income can nor normally be shifted to others and thus its incidence is on those for whom it is intended. Since income tax is progressive in nature, it tends to reduce economic disparity. Tax rates and method of calculating taxable income varies with fiscal status of the tax payer. Following are the broad categories of taxpayers:-
- 1. Individuals Business
- 2. Association Of Persons (AOP)
- 3. Salaried Individuals
- 4. Companies
Benefit of the NTN (National Tax Number)
Whoever gives the income to the Government, he/she has to register himself/herself with the FBR and get the (NTN). A person having NTN have the following advantages:
- When any he/she gets the NTN, he/she have to file the annual Income Tax Return.
- If he NTN holder is businessman, his/her business become more favorable and he/she can get many business benefits.
- It is the symbol of the patriotism that NTN holder is true person and loyal with the country.
- The NTN holder and income tax Payer can get many advantages from the Government fees.
- The income tax payer can get Government contracts and can participate in the auctions.
- The income tax payer can become the member of chamber of commerce and Industry.
- In the international level the income tax payer is consider as noble, honest and sincere of the country.
- If the income tax payer get public designation or become Govt. servant, nobody can raise objection and no once file disqualification on this ground.