Filing your income tax return is not just a legal requirement—it’s a vital step toward financial responsibility, tax planning, and avoiding penalties. Every salaried individual, business owner, freelancer, or company operating in Pakistan is required to file their income tax return annually with the Federal Board of Revenue (FBR).

In this article, we’ll break down the step-by-step process of filing an income tax return in Pakistan through the IRIS portal, along with required documents, timelines, and common mistakes to avoid.

Who Needs to File a Tax Return in Pakistan?

You are required to file an income tax return if:

• You are a salaried individual earning more than the taxable threshold

• You are a business owner, freelancer, or self-employed professional

• You are a company, AOP, or NGO

• You own more than 500 sq. yards of land or a 1,000cc or above vehicle

• You want to be included in the Active Taxpayer List (ATL) for lower tax deductions

Key Deadlines for Tax Year 2025

• Individuals & AOPs: September 30, 2025

• Companies (Year ending June 30): December 31, 2025

• Extension (if granted): Usually one month upon written request

Documents Required Before Filing

• CNIC and NTN

• Salary certificate (for salaried persons)

• Bank statements

• Utility bills, rental agreements, or property documents (if applicable)

• Tax deduction certificates (Section 149, 153, 155)

• Profit/loss account and balance sheet (for businesses)

• Foreign remittance certificates (for IT exporters/freelancers)

• Vehicle registration and ownership documents

• Wealth statement details (assets, liabilities, personal expenses)

Step-by-Step Guide to Filing Your Tax Return via IRIS

Step 1: Register on IRIS Portal

• Visit: https://iris.fbr.gov.pk

• Click on “Registration for Unregistered Person” if you’re a new filer

• Fill in your basic details, CNIC, email, and mobile number

• You’ll receive login credentials via SMS and email

Step 2: Log In and Access Return Forms

• Use your CNIC and password to log into the IRIS portal

• Navigate to ‘Declaration’ → ‘Income Tax Return’

• Select the relevant tax year (e.g., 2025)

• Click on ‘Create’ to open the return form

Step 3: Fill the Employment or Business Section

• Salaried Individuals:

  • Go to ‘Salary’ tab

  • Enter salary as per salary certificate

  • Input tax already deducted (Section 149)

• Business Owners / Freelancers / Sole Proprietors:

  • Fill in Business Receipts, Expenses, and Net Profit

  • Attach income sources like local services, IT exports, or consulting

  • Input any withholding taxes deducted

Step 4: Declare Other Income

• Rental income (Section 15)

• Capital gains from property (Section 37)

• Dividend or profit on bank deposits

• Foreign income or remittances (with bank proof)

Step 5: Fill the Wealth Statement (Form 116)

• Declare all assets and liabilities as of June 30, 2025

  • Cash in hand

  • Bank balances

  • Investments

  • Property/vehicles

• Record your personal expenses (utilities, grocery, travel, etc.)

• Reconcile with your declared income

Step 6: Validate and Submit the Return

• Click ‘Calculate’ to compute your tax

• Review all entries carefully

• Click ‘Submit’ on both:

  • Income Tax Return (Form 114)

  • Wealth Statement (Form 116)

Step 7: Download and Save Acknowledgment

• After submission, download Acknowledgment Receipt

• Save PDF copies of your return and wealth statement for record

Additional Notes

• If you’ve paid any tax manually (e.g., through PSID/CPR), ensure you link it in ‘Tax Paid’ section

• If your tax liability is zero, you must still file to remain on the ATL

• For foreign income exemption, you must submit remittance certificates from the bank

Common Mistakes to Avoid

• Not declaring all income sources

• Ignoring bank income or small rental income

• Not submitting wealth statement (required for most filers)

• Filing incorrect figures without supporting documents

• Waiting till the last day—portal slowdown or errors may occur

Penalties for Late or Non-Filing

Benefits of Filing Your Income Tax Return

• Inclusion in Active Taxpayer List (ATL)

• Lower tax on bank withdrawals, vehicles, property transactions, dividends, etc.

• Required for loan applications, visa processing, and tender participation

• Legal compliance with the Income Tax Ordinance, 2001

Who Can Help?

• Tax consultants and accountants with experience in IRIS

• Online tax filing portals and software

• Freelancers and business owners should seek expert advice for accurate declarations

Conclusion

Filing your income tax return in Pakistan is simpler than ever, thanks to FBR’s IRIS system and online tools. However, it requires careful preparation, accurate data entry, and compliance with legal requirements. Whether you’re a salaried person, freelancer, or entrepreneur, timely and correct filing not only protects you legally but also offers long-term financial advantages.