> For the complete documentation index, see [llms.txt](https://docs.taxaible.co/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.taxaible.co/support/glossary-of-terms.md).

# Glossary of Terms

This glossary defines key terms and acronyms used throughout the TaxAible platform and Pakistani tax documentation.

### A

* **Active Taxpayers List (ATL)**: A list maintained by the FBR of persons who have filed their tax returns for the relevant tax year. Being on the ATL (being a "Filer") entitles you to lower withholding tax rates.
* **Adjustable Tax**: Tax already paid on various transactions (e.g., telephone bills, vehicle registration, banking transactions) that can be deducted from your final tax liability.
* **Audit Shield**: A TaxAible feature that analyzes your return for "red flags" and assigns a risk score based on FBR audit patterns.

### C

* **Capital Asset**: Any property held by a taxpayer, whether or not connected with business, including immovable property, shares, and securities.
* **CNIC**: Computerized National Identity Card issued by NADRA. It serves as the primary identifier for individual taxpayers in Pakistan.

### D

* **Deemed Income**: Income that is assumed to have been earned under specific sections of the law (e.g., Section 7E), even if no actual cash was received.
* **Deductible Allowances**: Specific amounts (e.g., Zakat, charitable donations, educational expenses) that can be subtracted from total income to reach taxable income.

### F

* **FBR (Federal Board of Revenue)**: The central government agency responsible for collecting federal taxes in Pakistan.
* **Fair Market Value (FMV)**: The price that a property would fetch in the open market. For Section 7E, this is often determined by FBR or DC (District Collector) valuation tables.
* **Filer**: An informal term for a person whose name appears on the Active Taxpayers List (ATL).

### I

* **IRIS**: The official web-based portal developed by the FBR for the electronic filing of income tax returns and other statements.
* **IRIS Connector**: A TaxAible-exclusive browser extension that automates the transfer of prepared tax data from TaxAible to the FBR IRIS portal.

### N

* **NTN (National Tax Number)**: A unique number assigned by the FBR to a taxpayer. For individuals, this is usually their CNIC number.

### R

* **Reconciliation**: The process of ensuring that the increase/decrease in net wealth matches the difference between total inflows (income) and total outflows (expenses).
* **Resident**: For tax purposes, an individual who is present in Pakistan for 183 days or more in a tax year.

### S

* **Section 7E**: A law that imposes tax on "deemed income" from immovable property (plots, houses, etc.) with an aggregate value exceeding PKR 25 million.
* **Slab**: The progressive tax rates applicable to different income brackets. As your income increases, the rate of tax on the additional income also increases.

### T

* **Tax Year**: In Pakistan, the tax year runs from July 1st to June 30th of the following year (e.g., Tax Year 2024 is July 2023 to June 2024).

### V

* **Voice2Voice**: Our proprietary real-time voice interaction technology that allows users to chat with the tax assistant with ultra-low latency.

### W

* **Wealth Statement (Section 116)**: A mandatory statement filed alongside the income tax return that declares a taxpayer's assets, liabilities, and personal expenses.
* **Withholding Tax (WHT)**: Tax deducted at the source of a transaction (e.g., by an employer from salary or by a bank from profit on debt).

***

> \[NOTE] This glossary is for informational purposes. For legal definitions, please refer to the **Income Tax Ordinance, 2001**.


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