HOW TO FILE FBR INCOME TAX RETURN

Filing your Income Tax Return (ITR) with Pakistan’s Federal Board of Revenue (FBR) is a legal obligation and an essential step in responsible financial management. Whether you are salaried, self-employed, a landlord, or a business owner, tax filing is a necessary annual process that helps you remain compliant and eligible for government benefits.

This article provides a step-by-step guide on how to file your tax return through the FBR IRIS portal for the Tax Year 2025.

Why Filing Your Tax Return Is Important

• It is legally required under the Income Tax Ordinance, 2001

• Ensures your name appears in the Active Taxpayers List (ATL)

• Helps avoid higher withholding tax rates on banking, property, and vehicle transactions

• Required for loan applications, visa processing, and participating in government tenders

• Builds your credibility and financial history with FBR and banks

• May entitle you to tax refunds or credits if you’ve overpaid during the year

Who Must File an Income Tax Return in Pakistan?

The following persons or entities must file a tax return:

• Salaried individuals with income above Rs. 600,000 per year

• Business owners and freelancers with income over Rs. 400,000 per year

• Landlords earning rental income

• Professionals, including doctors, lawyers, consultants, etc.

• Companies and AOPs (Associations of Persons)

• Anyone who owns a vehicle above 1000cc, property, or has undertaken foreign travel

• Anyone issued a notice by FBR to file a return

Step 1: Register with FBR and Obtain NTN

If you’re filing for the first time, you need to create an account and get your National Tax Number (NTN).

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

2. Click on “Registration for Unregistered Person”

3. Enter your CNIC, email, and mobile number (must be registered in your name)

4. Once submitted, you will receive login credentials to access the IRIS system

If you already have an NTN but no login access, click on “E-enrollment for Registered Person” to retrieve your IRIS credentials.

Step 2: Gather Required Documents

You’ll need the following documents before filing:

• CNIC and NTN

• Salary certificate or payslips (for employees)

• Bank statements showing transactions and deductions

• Property documents (if you’re declaring rental income)

• Business income/expense records (if self-employed or a freelancer)

• Zakat, donations, or investment records to claim deductions

• Tax deduction certificates from banks, employers, or mobile companies

• Utility bills or tenancy agreements for address verification, if needed

Step 3: Log into the IRIS Portal

• Go to https://iris.fbr.gov.pk

• Use your CNIC as username and the password received during registration

• Once logged in, navigate to: Declaration → File Return

Step 4: Choose the Correct Tax Year and Form

• Select Tax Year 2025 (this covers income from July 1, 2024 to June 30, 2025)

• Choose the correct form based on your profile:

  • Salaried individuals

  • Business individuals (sole proprietors or freelancers)

  • AOPs or companies

Step 5: Fill the Income Tax Return

The form includes the following key sections:

• Personal Profile (your CNIC, contact, bank account, and employer details)

• Salary Income (enter your total annual salary and tax deducted by your employer)

• Business Income (gross receipts, expenses, and net profit)

• Rental Income (property location, rent received, and deductions)

• Capital Gains, Dividends, and Income from Other Sources

• Tax Deducted at Source (WHT) on bank, utilities, contracts, etc.

• Tax Credits and Allowable Deductions such as Zakat, donations, VPS contributions

Step 6: File Your Wealth Statement (Mandatory)

Every taxpayer is also required to file a Wealth Statement (Form 116). This includes:

• All assets you own (property, vehicles, gold, savings, etc.)

• Liabilities (loans, credit card dues, mortgages)

• A comparison between opening and closing net wealth for the year

Ensure your declared income supports your increase in net assets, or FBR may issue a notice for discrepancy.

Step 7: Submit and Pay Tax if Due

• Click on “Calculate” to check if you have any tax payable

• If tax is due, generate a PSID (Payment Slip ID)

• Pay the tax via ATM, online banking, mobile wallet (e.g., Easypaisa), or bank

• Once payment is made, link the PSID in your IRIS portal before final submission

After submission, you will receive an Acknowledgment Receipt confirming your filing.

Step 8: Keep a Copy for Your Records

Always download and save:

• Acknowledgment Receipt

• Income Tax Return PDF

• Wealth Statement PDF

• Keep digital and hard copies along with supporting documents for 6 years, as FBR may require them during audits

Common Mistakes to Avoid

• Forgetting to file your Wealth Statement

• Not reconciling withholding tax with bank statements

• Using wrong NTN of employer or incorrect income figures

• Not updating your personal profile (email, phone, address)

• Missing tax payment before submission

What Happens If You Don’t File?

• Exclusion from Active Taxpayer List (ATL)

• Higher withholding tax rates on various financial transactions

• Penalties starting from Rs. 1,000 up to Rs. 50,000

• Legal notices or audit selection by FBR

• Ineligibility for tax refunds and financial clearances