How to File Tax Return in Pakistan: A Step-by-Step Guide for Late 2024 and Beyond
Filing your tax return is a critical responsibility for all eligible individuals and businesses in Pakistan. This guide covers everything you need to know about how to file a tax return in Pakistan in 2024, especially if you’re running late. From understanding tax eligibility to gathering the necessary documents, we break down each step to ensure a smooth filing experience.
Why Filing Tax Returns in Pakistan Matters
Filing tax returns annually is not only a civic duty but also an obligation for individuals and businesses earning a certain income. Compliance with the Federal Board of Revenue (FBR) tax regulations is crucial to avoid fines and other penalties, ensuring that you maintain a clean financial record. Furthermore, filing taxes brings certain benefits, such as eligibility for government incentives, smoother visa applications, and other financial advantages.
Step 1: Check Eligibility for Filing Taxes in Pakistan
Before filing a tax return in Pakistan, verify whether you meet the eligibility criteria set by the FBR. Generally, taxpayers include:
- Individuals with annual income above a certain threshold (PKR 600,000 as of 2024 for salaried persons).
- Business owners and self-employed professionals generating revenue above FBR-specified limits.
- Property owners or individuals with assets valued above certain thresholds.
- Expats and overseas Pakistanis earning income within Pakistan.
Check the latest FBR guidelines for up-to-date criteria, as these figures may change annually.
Step 2: Gather Necessary Documents
Having the right documents prepared is essential for a hassle-free tax filing experience. The main documents you will need include:
- National Identity Card (NIC): Your NIC number is necessary for creating an FBR profile.
- Income and Expense Records: Details of your annual income, deductions, and expenses.
- Bank Statements: Bank details and statements for the tax year.
- Wealth Statement: An overview of your assets, investments, and liabilities.
- Tax Deduction Certificates: Proof of any tax withheld at the source.
For salaried individuals, the employer-provided tax deduction certificate is crucial. Business owners will need to keep invoices, receipts, and other relevant financial documents.
Step 3: Create an FBR Account (if First-Time Filer)
If this is your first time filing a tax return in Pakistan, start by registering on the FBR’s IRIS portal:
- Visit the FBR IRIS portal.
- Select the option to create a new account.
- Enter your NIC number, mobile number, and email address.
- Verify your account through the OTP sent to your mobile.
- Set a password and log in to access your FBR profile.
Once registered, you can begin the tax filing process. Ensure that your mobile and email are accurate, as FBR uses these for further communication.
Step 4: Complete and Submit the Income Tax Return Form
Filing your tax return in Pakistan involves completing the income tax return form on the IRIS portal. Follow these steps:
- Log in to your FBR IRIS account.
- Select the “Declaration” option on the dashboard.
- Choose the “Income Tax Return” form for the relevant tax year.
- Enter your income details, including salary, business income, or rental income.
- Add deductions for any tax-deductible expenses, such as donations, medical expenses, and Zakat.
- Complete the Wealth Statement to declare your assets and liabilities.
Important Tips:
- Double-check all entered amounts and information for accuracy.
- Use the FBR’s online calculator to compute payable taxes, especially if you are uncertain about calculations.
- Save copies of all submitted documents for future reference.
Step 5: Review and Pay Tax Dues
Upon completing the form, the FBR IRIS portal will show any payable tax. Pay any due amount through one of the following methods:
- Online bank transfer via your designated bank account.
- FBR’s partnered banks for physical payments.
- Mobile banking apps that facilitate FBR payments.
Once payment is complete, update the transaction reference in the FBR portal to complete the filing process.
Step 6: Submit and Save the Confirmation Receipt
Once your tax form is complete, select the “Submit” button. The system will generate an Acknowledgment Receipt confirming that your tax return has been successfully filed. Print and save this receipt as proof of submission.
Tip: Keep this receipt for future use, especially if you need it for loans, visa applications, or any official financial dealings.
Deadlines and Penalties for Late Filing
The deadline for filing tax returns in Pakistan is typically September 30 of each year. However, extensions may be granted by the FBR on a case-by-case basis. Failing to file by the due date may result in:
- Penalties: Fines calculated as a percentage of tax payable.
- Higher audit probability: Non-filers are more likely to be audited.
- Higher withholding tax rates: Non-filers face increased withholding tax on transactions such as property purchases and motor vehicle registration.
Visit the FBR website for information on extensions or waivers in case of late filing.
Tips to Simplify the Tax Filing Process
- Use FBR’s helpline: Reach out to FBR’s customer support for assistance with IRIS or tax-related queries.
- Consult a tax professional: Professional help can ensure compliance, reduce errors, and save time.
- Maintain regular financial records: Organized records make tax filing easier and faster.
This guide empowers you to file your taxes with confidence, even if you’re approaching the deadline. For any advanced tax solutions or queries, consider professional tax consultation services to further ease the process.
Read our other Articles on FBR Property Valuation Increase: What the New Rates Mean for Pakistan’s Real Estate Market and also 10 Reasons to Invest in Real Estate
Anyone with a certain income threshold, assets, or business within Pakistan must file a tax return. Read the latest FBR criteria here
No, your NIC number is essential for registration on the FBR’s IRIS portal, as it serves as your primary identification.
Missing the deadline may result in penalties, increased withholding tax rates, and a higher chance of audit. Extensions are sometimes granted; check the FBR site for updates.
Yes, you can pay through online bank transfers, mobile banking apps, or by visiting partner banks. Always update the payment reference in the IRIS portal.
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Yes, you can amend your return by accessing the Amend Return option in the IRIS portal within a specified period after submission.