How To File Tax Return In Pakistan? – Follow FBR Instructions

Filing a tax return is paramount for both individuals and businesses in Pakistan. At its core, it is a civic responsibility to contribute to the nation’s development by generating revenue that funds essential public services. Beyond this, filing a tax return offers several key benefits.

Filing a tax return in Pakistan is essential for numerous reasons. Firstly, it’s a civic duty that helps finance vital public services. Beyond that, it ensures legal compliance, reducing the risk of penalties.

The tax filing process in Pakistan is typically conducted through the Iris portal or paper filing, ensuring accessibility for many taxpayers. The government has also introduced user-friendly mobile applications like Tax Asaan, making it increasingly convenient for taxpayers to fulfill their obligations. By understanding the significance of tax filing and the streamlined process in Pakistan, individuals and businesses can contribute to the country’s economic growth while safeguarding their financial well-being.

For an accurate assessment of your taxes, make use of the FBR tax calculator Pakistan.

How To Prepare for FBR Tax Return?

Before filing your tax return in Pakistan, gather the following essential documents and ensure you’re ready for the process:

Required Documents:

1. CNIC (Computerized National Identity Card)
2. Salary slips and income statements from all sources
3. Bank statements
4. Property documents (if applicable)
5. Investment statements (if you have investments)

Necessary Steps:

1. Organize your documents systematically for easy access.
2. Review past tax returns to understand your tax history.
3. Consider seeking professional assistance if your financial situation is complex or unclear.

By having these documents and taking these steps, you’ll be well-prepared to file your tax return accurately and efficiently.

Selecting the Appropriate Form for Your Income Source

To choose the right tax return form, you’ll need to consider the nature of your income source(s). Here’s a general guideline:

• If you are an individual: Use the individual tax return form if you earn income personally from various sources, including employment, business, investments, and property.
• If you are part of an association of persons (AOP): Opt for the AOP tax return form if you are involved in a collective venture where multiple individuals contribute to and share the income.
• If you are running a company: If you’re the owner or part of a registered company, select the company tax return form to report your corporate earnings.

How Can I File Income Tax in Pakistan? – Steps By Step Guide

Here we come up with a procedure to follow while filing your FBR income tax in Pakistan.

There are three options to file an income tax return in Pakistan.

• IRIS Portal
• Paper Filing
• Tax Asaan

File Income Tax By IRIS Portal

Here’s a step-by-step guide for online tax return submission through the Iris portal of FBR (Federal Board of Revenue) in Pakistan:

• Go to the official Iris portal of FBR, which is the online platform for filing income tax returns.
• Enter your username and password in the respective fields.
• If you forget your password, click the “Forgot password & recover it” option to reset it.
• After successfully logging in, click on the “Declaration” menu, typically located at the start of the portal.
• Under the “Forms” section, choose “Return of Income Filed Voluntarily.”
• Click on the “Period” tab and enter the Tax Year for filing your return.
• Within the form, locate the “Employment Section.”
• In the “Total Amount” section, enter your annual income from your salary.
• Click on the “Salary” button.
• Re-enter your annual income in the “Total Amount” section.
• Click on the “Calculate” button.

Provide Tax Details

• Enter the total tax and the amount exempt from tax, and submit the final tax in the input fields.
• Click on the “Calculate” button.

Handle Adjustable Tax

• In the “tax Chargeable/Payments” tab, select “Deductible Allowances.”
• Fill out the Tax Chargeable, Tax Reductions, Adjustable Tax, and Tax Credits fields.
• If applicable, fill out the details of taxes already charged during the tax year based on your employment type.

Review and Confirm

• Review all the details you’ve entered to ensure accuracy.
• Click the “Calculate” tab after completing all the necessary fields.

Check Tax Chargeable/Payments

• In the “Tax Chargeable/Payments” tab, you will see a summary of your income and chargeable tax.
• Check the tabs for “Admitted Income Tax” and “Demanded Income Tax.”

Report Net Assets

• Click on the “Personal Assets” menu to report your asset information.
• Enter details for net assets from previous and current years.
• Provide details about annual income in the inflows and outflows field.
• Click on the “Calculate” button.

Verify and Submit

• Ensure that the “Unreconciled Amount” is zero.
• In the “Payments” tab, click the “+” sign to add payment details if required.
• Verify your identity by entering the verification pin received during registration.
• Click on the “Verify Pin” tab.
• Once all details are verified and filled out correctly, click on the “Submit” tab to file your income tax return.

Save and Confirm

• After clicking “Submit,” review your information one last time.
• Click on “OK” to confirm the submission.

Following these steps will guide you through the Iris portal’s online tax return submission process, ensuring that you fulfill your tax obligations accurately and efficiently.

To learn about withholding tax in Pakistan, read our comprehensive guide on this topic.

Paper Filing Income Tax Return Pakistan

Here are the simplified, step-by-step instructions for paper filing income tax returns in Pakistan:

Step 1: Download the Form

• Visit the FBR website and download the Paper Return Form.
• Alternatively, get the form from Taxpayer Facilitation Counters at your Regional Tax Office.

Step 2: Complete the Form

• Fill out the Return of Income and Wealth Statement forms (assets and liabilities).
• Ensure all information is accurate and complete.

Step 3: Registration (First-Time Filers)

• If you’re a first-time filer, register on the FBR’s online portal, Iris.
• Click on “E-enrollment for Registered Person” if you have an NTN but no Iris credentials.

Step 4: Log into Iris

• Log in to Iris using your credentials.
• If not registered, complete the registration process.

Step 5: File Your Income Tax Return

• After login, select the relevant tax year, and follow online instructions to complete your tax return.

Step 6: Record Keeping

• Keep records of all relevant income, expense, and asset-related documents for future reference.

Step 7: Privacy and Security

• Protect your personal information while using Iris for filing.
• Safeguard your login credentials.

You can learn more about Income tax slabs in Pakistan in our dedicated article on the subject.

Tax Asaan Income Tax Return Pakistan

Filing your income tax return in Pakistan has become more accessible thanks to the Tax Asaan application, which simplifies the process. Here’s a user-friendly guide on how to file your tax return using the Tax Asaan app:

Step 1: Download and Install the Tax Asaan App

Begin by downloading and installing the Tax Asaan mobile application on your smartphone. You can find this app on popular app stores.

Step 2: Log In to the App

After installing the app, open it and log in using your registered credentials. Ensure that you have the necessary information to access your account.

Step 3: Select Income Tax Return

Within the app, look for and tap on the “Income Tax Return” option. This core feature enables you to file your income tax return conveniently.

Step 4: Specify Tax Year

Next, you’ll need to specify the tax year you want to file your returns. Ensure you select the correct tax year to report your income accurately.

Step 5: Residential Status

In this step, specify whether you were a resident or non-resident during the relevant tax year. Your residential status can affect your tax liability, so provide accurate information.

Step 6: Provide Income Details

Enter your annual salary and any deductions related to your salary or other allowances and bonuses. Accurate income reporting is crucial to ensure your tax return is compliant.

Step 7: Submit Your Return

Review all the information you’ve entered for accuracy. Once everything is correct, press the “Continue” button to submit your income tax return.

Winding Up

Navigating the tax filing process in Pakistan, whether through traditional methods or user-friendly apps, is crucial for individuals and businesses. Responsible taxation upholds legal obligations and contributes to the nation’s development. We encourage everyone to file their taxes promptly, ensuring accuracy and compliance. By doing so, you meet your civic duty and play a vital role in building a financially stable and prosperous Pakistan for all its citizens.

If you’re about types of taxes in Pakistan, visit our guide to learn about the different types of taxes in Pakistan.