A Complete Guide to Filing Income Tax Returns in Pakistan

Filing income tax returns in Pakistan is a legal obligation for individuals and businesses earning above a certain income threshold. This detailed guide will walk you through the essential steps to ensure your tax return is filed correctly and on time.

Step-by-Step Process to File Income Tax Returns

1. Registration and Access to IRIS

Registration

If you are filing for the first time, you must register with the Federal Board of Revenue (FBR) to obtain a National Tax Number (NTN) or Registration Number. This step is crucial for becoming a compliant taxpayer.

Access IRIS Portal

Once registered, log into the FBR’s online portal, IRIS, where you can file your income tax return. If you have an NTN but no login credentials, select the ‘E-enrollment for Registered Person’ option to gain access.

2. Gather Necessary Documents

The required documents vary depending on your category as a taxpayer. Here’s a breakdown:

For Salaried Individuals:

• Tax Deduction Certificate from your employer
• Bank account statement for the fiscal year
• List of personal assets and their purchase value
• Details of any loans or liabilities
• Utility bills in your name

For Business Owners/Self-Employed:

• Tax Deduction Certificates from companies or banks
• Summary of net sales invoices and business expenses
• Bank statements for the fiscal year
• Details of business and personal assets as of June 30th

Additional Documents (optional):

• Certificates of tax deductions from mobile carriers or banks
• Foreign remittance certificates
• Advance tax receipts for property or vehicle registrations

3. Filing the Return

Log into IRIS

Use your credentials to access the IRIS portal and begin the filing process.

Fill Out Forms

Complete the required forms with accurate information regarding your income, deductions, and assets.

Submit Wealth Statement

If applicable, submit a wealth statement detailing your assets and liabilities to ensure compliance with tax regulations.

4. Submission and Verification

Review and Submit

Before submitting your return through the IRIS portal, double-check all information for accuracy to avoid complications.

Verification

After submission, check the status of your tax return using tools like Befiler’s ATL status checker to confirm you are listed as an active filer.

5. Deadlines and Penalties

The typical deadline for filing tax returns in Pakistan is September 30th each year. However, this date may be extended by up to a month at the government’s discretion.

Late filing can result in fines and penalties, so it’s crucial to file on time, even if you have no taxable income.

Benefits of Filing Tax Returns

Filing your income tax return not only fulfills a legal obligation but also provides several benefits, including:

• Eligibility for loans
• Maintaining a clean financial record
• Potential tax refunds if overpayments have occurred

By following these steps and ensuring that all required documents are prepared in advance, you can efficiently file your income tax returns in Pakistan without hassle.

For personalized assistance with your tax filings, contact ABH Tax Consultants Islamabad today! Our team of experts is here to guide you through the process and ensure your compliance with all tax regulations.