Mohammad Mehtab Khan & Co - MMK & Co

19/08/2026

💡 Tax Tip: Don’t Overlook Allowable Rental Income Expenses

As the tax filing season is in full swing, here is one important point that taxpayers should keep in mind.

We have observed that many consultants, while calculating rental income, only claim the one-fifth (1/5th) allowance and overlook other allowable expenses.

Under Section 15A(h) of the Income Tax Ordinance, 2001, certain other expenditure incurred in respect of the property may also be allowable, subject to the applicable conditions and prescribed limit.

This can help legitimately reduce your taxable rental income and, consequently, your overall tax liability.

With tax rates reaching as high as 45%, every legitimate deduction can make a meaningful difference.

So, before filing your return, make sure all applicable deductions and allowances have been properly considered.

⚖️ Be careful. Be informed. Pay only what is legally payable.

Mohammad Mehtab Khan & Co.
Tax Consultants | Tax Litigators | Corporate Advisors

13/08/2026

🇵🇰 Happy Independence Day, Pakistan! 🇵🇰

On this Independence Day, let us celebrate the freedom we cherish and reaffirm our commitment to building a stronger, more just and prosperous Pakistan.

As professionals in law and taxation, we believe that justice, integrity, accountability and responsible citizenship are essential foundations of a successful nation.

May Pakistan continue to progress, prosper and rise to greater heights.

Pakistan Zindabad! 🇵🇰

— Mohammad Mehtab Khan & Co.
Advocates & Tax Consultants

10/08/2026

Section 7E has been declared ultra vires. But what happens to the taxpayers who have already paid tax under the provision?

The declaration that Section 7E is ultra vires raises an important practical question:

How can taxpayers who have already discharged their tax liability under Section 7E claim a refund when the FBR has not yet provided a clear mechanism for doing so?

There are views that where a levy is illegal, no formal proceeding may be necessary for seeking its refund. However, in my view, where the tax has been discharged as part of the Return of Income, the claim for refund should appropriately follow the statutory mechanism available for dealing with mistakes and errors in the return.

There is considerable support for this proposition in the jurisprudence.

In 2012 SCMR 371, the Honourable Supreme Court allowed rectification in respect of a return where WWF had been paid under a mistake.

More recently, the Honourable Supreme Court has also recognized the applicability of Section 221 in relation to a Return of Income. This further supports the proposition that rectification may be an appropriate legal avenue where an amount has been paid under a mistake or an erroneous position reflected in the return.

The practical question, therefore, is no longer merely whether Section 7E is constitutionally valid.

The next question is:

What is the appropriate statutory mechanism for taxpayers to recover tax already paid under a levy subsequently declared ultra vires?

In the absence of a clear mechanism from the FBR, taxpayers may have to explore the available statutory remedies for rectification and refund, while ensuring that the claim is properly supported by the relevant judicial pronouncements.

This is an issue that deserves serious consideration—not only from taxpayers who have already paid Section 7E tax, but also from tax practitioners and the FBR itself.

The declaration of an unlawful levy should logically be followed by an effective and accessible mechanism for restitution.

If you have already paid tax under Section 7E and require assistance in evaluating the available legal remedies for refund or rectification, please feel free to contact us for professional assistance.

29/07/2026

28/07/2026

⚠️ A Costly Super Tax Mistake Many Taxpayers Are Making

While preparing your Income Tax Return, don't make the mistake of calculating Super Tax under section 4C of the Income Tax Ordinance, 2001 on gross receipts where your income is subject to the Final Tax Regime (FTR).

For income falling under the FTR, the computation of Super Tax should be based on the imputable income, not the gross receipts. Applying Super Tax directly to gross receipts can significantly inflate your tax liability and result in an unnecessary financial burden.

A simple computational error can cost millions, particularly for businesses with high turnover but relatively low margins.

Before submitting your return:

✅ Review the nature of your income.
✅ Ensure the correct tax regime has been applied.
✅ Verify the basis of your Super Tax computation.
✅ Seek professional advice where required.

Tax compliance is not just about filing your return—it's about filing it correctly.

This post is intended for general awareness. The applicability of section 4C depends upon the facts of each case and the relevant provisions of the Income Tax Ordinance, 2001.

21/07/2026

Experience Doesn't Merely Resolve Disputes—It Helps Prevent Them.

In today's world, professional services are often compared based on one factor alone—the fee. However, the true value of a professional is not reflected in the fee charged, but in the quality of advice, sound judgment, and ability to protect a client's interests.

Whether you are engaging a lawyer, tax consultant, financial advisor, architect, or any other professional, your decision should be guided by experience, competence, integrity, and trust—not merely by cost.

The right professional does more than solve an existing problem. They help you identify potential risks, avoid unnecessary litigation, ensure compliance, and make informed decisions that safeguard your future.

A well-informed decision today can save years of unnecessary disputes, financial losses, and avoidable stress.

Professional advice is not an expense—it is an investment in protecting your rights, your business, and your peace of mind.

As Warren Buffett wisely said:

> "Price is what you pay. Value is what you get."

At Mohammad Mehtab Khan & Co., we believe that the best professional advice is the advice that helps clients avoid problems before they arise.

📞 0336-2899662

17/07/2026

One of the greatest lessons every courtroom teaches is patience.

A bench may be scheduled to commence proceedings at 9:00 AM, yet hearings may not begin until 10:00 AM or even later. Lawyers often spend considerable time waiting for their matters to be called.

However, successful advocates understand that this time is not lost—it is an opportunity.

The courtroom is more than a place where cases are argued; it is a place where ideas are exchanged. Conversations with fellow advocates about recent judgments, legal strategies, procedural developments, and practical experiences often provide insights that cannot be found in textbooks.

Every discussion broadens perspective, refines legal thinking, and contributes to professional growth.

At Mohammad Mehtab Khan & Co., we firmly believe that continuous learning is one of the defining characteristics of an effective legal practitioner. Every day in court presents an opportunity not only to represent clients but also to learn, grow, and become better advocates.

Never let time in court go to waste. Learn, observe, engage, and keep growing.

07/07/2026

Why Filing Your Income Tax Return Is More Than Just a Legal Requirement

Every year, thousands of Pakistanis delay filing their income tax returns, assuming they can "do it later" or believing it isn't important. Unfortunately, this misconception often leads to higher taxes, unnecessary penalties, and compliance issues.

Filing your income tax return is not merely about complying with the law—it is about protecting your financial interests.

A properly filed tax return can help you:

✔ Remain on the Active Taxpayer List (ATL), allowing you to benefit from lower withholding tax rates.

✔ Establish financial credibility when applying for bank financing, visas, or other financial transactions.

✔ Maintain accurate records of your income, assets, and investments.

✔ Minimize the risk of future notices or disputes arising from incorrect or incomplete declarations.

One of the most common mistakes I encounter is taxpayers relying solely on online information or filing returns without professional guidance. Every individual's tax position is different, and a return should reflect their actual financial circumstances while remaining fully compliant with the law.

At Mohammad Mehtab Khan & Co., we believe that tax compliance is not simply about filing forms—it is about providing sound legal guidance that protects our clients today and prepares them for tomorrow.

If you are unsure whether you are required to file a return, or if you would like your tax affairs reviewed, seeking professional advice at the outset can save significant time, expense, and inconvenience in the future.

Mohammad Mehtab Khan & Co.

Advocates | Tax Consultants | Tax Litigation Specialists

22/06/2026

📢 Internship Opportunity – Tax Litigation & Advisory

Mohammad Mehtab Khan & Co. is pleased to announce a Six-Week Internship Program for law students interested in pursuing a career in Taxation, Tax Litigation, and Advisory Services.

This internship will provide practical exposure to:
✔ Tax litigation and appellate proceedings
✔ Legal research and case law analysis
✔ Drafting of appeals, submissions, and legal documents
✔ Income Tax and Sales Tax matters
✔ Tax compliance and advisory work

Eligibility:

* Students currently enrolled in the Second Year or Final Year of LL.B.
* Strong interest in taxation and litigation
* Good research, drafting, and analytical skills
* Willingness to learn and work in a professional environment

📍 Location: Karachi
📅 Duration: 6 Weeks

Interested candidates may send their CVs to:

📧 [[email protected]]

This is an excellent opportunity to gain hands-on experience and practical insight into the field of tax litigation and advisory services.

11/05/2026

⚖️ Commitment. Compliance. Confidence.

At M. Mehtab Khan & Co., we provide trusted legal and taxation solutions designed to support your business with confidence and clarity. From expert legal advice to comprehensive compliance services, we are committed to helping businesses grow securely and successfully. 🤝✨

✔ Expert Legal Advice
✔ Taxation Expertise
✔ Reliable Corporate Solutions
✔ Dedicated Client Support

📞 0300 7794585 | 0336 2899662
📧 [email protected]

📍 Suite # 320, 3rd Floor, Clifton Centre, Block 05, Clifton, Karachi