Here’s How You Can File Your Income Tax in Pakistan [Guide]

Want to avail better than usual services at airports, excise offices? Want to get that new car at a lower price? Or even that prime piece of real estate at a lower-than-asking rate? Want to enjoy a minimal withholding tax on all your banking transactions? Did you recently suffer a loss in your business and need a tax waiver?

If you answered yes to any of those questions, then you need to file your tax returns and wealth statement so that you can enjoy these benefits.

Most of us, contrary to popular opinion, want to do our bit for our country and pay our taxes like a law-abiding citizen. Many are just turned off from doing so because:

  • It’s a very cumbersome process.
  • ‘My employer deducted it so why should I even bother?’
  • You don’t have a guide to do so.
  • ‘We are already paying taxes through indirect means.’
  • Who cares, its Pakistan.

Now assuming that you agreed with most of the reasons listed above, then sorry to say but that makes you tax illiterate. In fact, even most of the educated people here are guilty of the same.

This post will attempt to get you on your way to becoming a filer.

Filing your tax returns & wealth statement is beneficial for both you and your government.

And here’s how you can start doing so in 2017.

Step 1: Know FBR’s Instructions for Filing Taxes for 2017

Before we get to how to register online as a tax filer and submit your returns, it is prudent to go through the Federal Board of Revenue’s (FBR) recent SRO No. 981(I) 2017 from September 28.

If you are a salaried individual whose income does not exceed Rs. 400,000 annually, you won’t need to pay income tax. However, for maximum transparency, you will still need to file your tax returns with the correct details.

In case your yearly income does exceed Rs 400,000, you can consult this article.

FBR has extended the last date for filing your tax returns from September 30 to October 31 2017.

Step 2: Get Registered with FBR E-Enrollment System Online

You can get registered with FBR here and start filing your tax returns online. Previously FBR used to have separate portals for individuals and companies. But now, they have simplified it further for everyone.

The process is relatively straight-forward for both new and returning users alike. We have recapped it here intensively should you need to get up to speed with it.

To get enrolled, you only need to click the “Registration for Unregistered Person” or “E-Enrollment for Registered Person“. It will ask you or your CNIC number and phone number (which has to be registered under your own name).

Step 3: Prepare and Submit Your Tax Documents

Once signed up, you’ll see a few categories on the left. Go to the registration document in the Drafts folder and fill it. When you have filled it and submitted it, FBR will confirm your account and you will be able to submit your tax returns and wealth statements.

For Income Tax Statement:

For Wealth Statement:

If going online is not an option for you, then you can manually file your returns on paper at Taxpayer Facilitation Counters of the respective Regional Tax Office. Paper Return Form can be downloaded from FBR’s website as well.

Note: Submitting your tax details online with FBR’s portal may seem easy. However, it is always helpful to let a professional with experience in tax-related matters help you out when filling these forms especially if you are a businessman.

Who Needs to File the Income Tax Returns?

Here are the people and entities who have to submit their tax returns as per law.

  • Every company;
  • Every person (other than a company) whose taxable income for the year exceeds PKR 400,000;
  • Every non-profit organization as defined in clause (36) of section 2;
  • Every welfare institution approved under clause (58) of Part I of the Second Schedule;
  • Every person who has been charged to tax in respect of any of the two preceding tax years;
  • Every person who claims a loss carried forward under this Ordinance for a tax year;
  • Every person who owns immovable property with a land area of two hundred and fifty square yards or more or owns any flat located in areas falling within the municipal limits existing immediately before the commencement of Local Government laws in the provinces; or areas in a Cantonment; or the Islamabad Capital Territory;
  • Every person who owns immoveable property with a land area of five hundred square yards or more located in a rating area;
  • Every person who owns a flat having covered area of two thousand square feet or more located in a rating area;
  • Every person who owns a motor vehicle having engine capacity above 1000 CC;
  • Every person who has obtained National Tax Number;
  • Every person who is the holder of commercial or industrial connection of electricity where the amount of annual bill exceeds rupees five hundred thousand;
  • Every person who is registered with any chamber of commerce and industry or any trade or business association or any market
  • committee or any professional body including Pakistan Engineering Council, Pakistan Medical and Dental Council, Pakistan Bar Council or any Provincial Bar Council, Institute of Chartered Accountants of Pakistan or Institute of Cost and Management Accountants of Pakistan;
  • Every individual whose income under the head Business exceeds PKR 300,000 but does not exceed PKR 400,000 in a tax year.

Your Income Tax Returns will not Be Entertained if:

Under section 182(1), individuals and companies need to make sure that they don’t fill in the wrong details in their forms, failing which will result in penalties for the concerned parties.

  • CNIC should not be missing or incorrect or invalid;
  • Mandatory fields marked by * shouldn’t be empty;
  • Return should be duly signed by the Taxpayer or his Representative (as defined in section 172 of the Income Tax Ordinance, 2001);
  • Return should be filed in the prescribed Form and format.

This guide is not meant to be used an exhaustive resource, however, it represents that first step for people who are genuinely looking to contribute to Pakistan’s well-being and do their civic duty as responsible citizens. We hope that this guide has pointed you at the right direction.

Do you have any questions regarding FBR’s process for filing tax returns online? Do let us know in the comments below.

Samir heads the sponsored content department at ProPakistani. He also looks after the LIfe section.


  • Waiting For ” Here’s How You Can HIDE Your Income & Taxes in Pakistan [Guide] “

    • Atif

      Are you an idiot or what?

      • muhammad qasim

        he is not an idiot he is a what

  • Hiza Khan

    hey Samir Yawar, nice article.
    In the past year I had given loan to someone, please let me know where this should be show

    • Abdul

      Debt to Individual in Wealth Statement (Assets column)

    • Aneef Izhar

      In the Wealth and Asset Declaration form, go to the Personal Assets/Liabilities Tab and enter the details of Loan in the “Debt” category. It will ask the details of the person to which you gave the Loan to. His name/cnic,etc.

  • Aman Sarwar

    How can i file as an individual freelancer. I don’t have a registered company nor i have a company name either. I work as social media marketer. most of my revenue come from affiliate product sales and providing traffic to news media websites through Facebook ads and pages.

    • Abdul

      If your income is from foreign, declare in foreign income column.

      • HR

        Hi Abdul, what if the freelancer’s income is from abroad but in Pakistani rupees? How does the freelancer prove the source of income?

  • Mazak

    There should be a program where a fbr person goes to every door step and guide them, that what are the benefits of tax paying. Etc.
    People should be aware of this.
    Almost half of AWAN doesn’t even know that FBR exists

  • Imran

    What is the tax law for capital gain?

  • iffan

    i am living and working abroad… i keep on getting sms and emails from fbr to give my tax return details… i made NTN number 11 yrs ago just to book a car as it was required to have NTN to book one… first question is do i have to file a nill tax return or i dont have to do anything…? i contacted FBR helpline but those guys said give tax details i wonder what details as i have no income in pakistan nor any property…

    • nersingh das

      Dear if you have no income and no property then why you need NTN(National Tax Number) , its very simple that if any one want to travel in train then he must have train Ticket. simply if you have no income so you donot have need of NTN.

  • Asif Khan PTI

    Nice, how to obtain NTN number ?

  • I use PakTaxManager services for my personal and firm’s taxes. Visit their website…

  • Vostro Div

    AoA,
    I am a Software freelancer and only works with international clients via Odesk.

    I have recently registered a software company with FBR under sole proprietorship, which is attached with my personal NTN.

    I receive all payments via bank account (which is on my company’s name and attached with my personal NTN).

    My question is that do I need to pay any kind of tax on the money which I withdraw from my bank account on monthly or random basis?

    Regards!

    Ali Hassan

  • Ali

    I just have a quick question and would really appreciate if you could help me out.

    I was filling out my tax return on iris and realized that the amount I have paid for income tax is less that the total that is due on my total yearly income. This is because I changed my job in the middle of the year and both employers cut income tax for my monthly salary according to the individual totals they have paid me. However if I take the complete sum then my tax bracket changes and therefore I think I actually have to pay more tax

    In this case now what would be the procedure to submit that extra income tax? Can it be some online through iris or do I have to fill up a form or something and submit it in a bank? Also once I’ve made the payment how would I reflect this in the iris system?

  • can we file tax return now ?
    date to guzar chuki hai
    ya 2018 main hi hoga ab

  • Shahzad Saleem

    How to file for house wife. I made the account. In registration tab, column of link, there is an option of capacity. In capacity which option should be selected???