Section 115 Income Tax Ordinance 2001 Pakistan | Relief for Widows, Orphans, Disabled & Overseas Pakistanis

In Pakistan, the Income Tax Ordinance, 2001 outlines who must file a tax return and under what conditions. However, Section 115 provides special relief for certain individuals, including widows, orphans under 25, disabled persons, and overseas Pakistanis.

This article explains the key benefits under Section 115 and why these individuals — even if legally exempt — should still consider filing a Nil return to become Active Filers.

Section 115 of Pakistan’s Income Tax Ordinance provides relief from tax return filing for widows, orphans under 25, disabled individuals, and overseas Pakistanis.

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🎬 Title: Section 115 Income Tax Ordinance 2001 | Relief for Widows, Orphans, Disabled & Overseas Pakistanis

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🔹 What Is Section 115?

Section 115 of the Income Tax Ordinance, 2001 identifies individuals not required to file an income tax return unless they meet other conditions (outlined in Section 114). These include:

• Individuals with only final taxed income

• Certain socially disadvantaged individuals

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✅ Who Gets Relief Under Section 115?

1. Widows

• Exempt from mandatory tax return filing unless they own taxable property or earn above the threshold.

• Still, filing a Nil return helps them become Active Filers.

2. Orphans Under 25

• Orphans below the age of 25 are also exempt, but encouraged to file Nil returns to:

  • Appear on the Active Taxpayer List (ATL)

  • Access benefits in education, jobs, and financial institutions

3. Disabled Persons

• Recognized disabled individuals are exempt under Section 115(2), but filing keeps them in the tax system, helping with:

  • Property transfers

  • Scholarships

  • Legal and financial matters

4. Overseas Pakistanis

• If they are non-residents with:

  • No Pakistan-source income, or

  • Income already taxed at source (e.g. profit on debt, dividends, rent),

  then they are not required to file. However, filing a Nil return or statement under Section 115(4) ensures Active Filer status, saving money on:

  • Property purchase

  • Vehicle registration

  • Banking and utility services

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📌 Why File a Nil Return?

Filing a Nil return is beneficial even when exempt:

• ✅ Become an Active Filer (ATL)

• ✅ Pay less withholding tax

• ✅ Required for many government services

• ✅ Build a compliant tax history

• ✅ Avoid issues in future tax years

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📝 How to File a Nil Return?

1. Visit: https://iris.fbr.gov.pk/

2. Register or log in to the FBR IRIS Portal

3. Select tax year → file return with zero income

4. Alternatively, file a Section 115(4) statement for final taxed income

5. Your name will appear on the ATL list after the next FBR update

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📢 Final Note from AHA Apex Wing

At AHA Apex Wing, we aim to guide and educate citizens about important legal, tax, and compliance topics in Pakistan.

If you're a widow, orphan, disabled person, or overseas Pakistani, remember:
Even if you're exempt, filing a Nil return is your key to financial convenience.

📺 Watch our short video on YouTube:
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Stay informed. Stay compliant. Stay empowered.