How to File an Income Tax Return?

The Federal Board of Revenue made it a compulsion to file an income tax return for all salaried-based individuals. You must file an income tax return if your annual salary is at least Rs 600,000. Every individual who earns Rs 600,000 or more annually has to pay the income tax before 30 September every year.

You must hurry if you have not filed your income tax return and your annual salary equals or exceeds the mentioned figure. As a responsible and respectful Pakistani, you won’t like to face the consequences of not obeying the law. Don’t worry if you have no idea how to file an income tax return; we are here to guide you.

In this blog post, we will discuss how to file an income tax return and what documentation you will be required to complete the process. Before discussing how to file an income tax return, let’s have a quick look at what is tax return filing.

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What is Tax Return Filing?


A tax return is a form filed by the tax authority explaining the income and tax information, and tax return filing is a form that an individual will file explaining the income and expenses to submit to the FBR. FBR made it compulsory for business persons or employees to file tax returns and get their National Tax Numbers.

How to File an Income Tax Return?

The process of filing an income tax return is relatively easy. There is no need to crack your knuckles; I can understand the anxiety of first-timers. I felt the same when I filed my income tax return for the first time.

Everyone who is doing it for the first time, do not worry; follow my lead. I am explaining the whole process in a step-by-step guide below.

Login to Iris Portal

  • Iris is an online portal of FBR to file income tax returns.
  • If you are a first-time user, then registration is mandatory.
  • Login to the Iris using your NTN or registration number and password.
  • If you do not remember your password, you can recover it by clicking “Forget password”.
  • After successful login, click on the “Declaration” menu.
  • Click on the tab form stating the return of income filed voluntarily.
  • Now click on the period tab to enter the tax year.

Employment Section

  • Now, from the employment section, choose the salary tab. Enter the annual income in salary in the “total amount” section.
  • If your salary includes the amount excluded from tax, mention it under the heading “Amount exempt from tax.”
  • Now click on the calculate button.
  • Give the total tax and the amount excused from tax, submit it to the final tax in the input fields, and click the calculate button.

Adjustable Tax and The Amount of Tax Deducted

  • Choose the tax chargeable/payments tab and select the “Deductible Allowances” tab, where the amount for Zakat or charity will be deducted.
  • Fill out the tax chargeable, tax reductions, adjustable tax, and tax credits fields.
  • Now, fill in the details of the taxes already taxed or charged to you during your tax year on the adjustable tax screen.
  • You must enter the tax amount against the 64020001 code for federal government employees.
  • If you are a provincial government employee, enter the tax amount against 64020002.
  • You must enter your tax amount against the 64020003 code for corporate sector employees.
  • You can also adjust the tax deducted by your bank on various sections, like when you withdraw cash from the bank in 64100101, and for other banking transactions like any bonds or savings, you have to enter your tax in the code 64151501.
  • The tax deducted by your bank on motor vehicle registration fees, transfer fees, sales, and leasing can also be adjusted against their respective codes.
  • A dialogue box asking for vehicle details like E&TD Registration Number will appear and provide further details about its make, model, and engine capacity.
  • After completing the details, click on the calculate tab button.

Tax Chargeable/Payments

  • Click on the tax chargeable/payments tab, and details of your income and chargeable tax will be on the screen.
  • You can now check the tabs Admitted Income Tax and Demanded Income Tax.
  • If you have any amount against the Demanded Income Tax tab, you must pay it and attach the relevant CPR there.

Net Assets

  • Select the personal assets menu to give detailed information about your assets.
  • Write the total amount for the last and current year’s net assets.
  • Enter the amount of the annual income in the inflows field.
  • After completing all the details, click on the calculate button.
  • Ensure the unreconciled amount is zero before submitting income tax returns.

Payment for Demanded Tax

After paying the demanded tax either by Alternative Delivery Channel (ADC) or through paying cash by visiting a branch of the National Bank of Pakistan, you have to submit the details of your income tax return.  Follow the process mentioned below:

  • Choose the payments tab and click the + sign in the top right corner.
  • A dialogue box will appear where you must write the payment details.
  • Write CPR no. Amount Code or Paid Amount and click on the search option.
  • The list of your payment details will appear; click the OK button and save.

VERIFY Income Tax Return Form and Submit it

  • After adequately completing all required fields, you must verify your identity.
  • Your name and registration number will already be sorted.
  • Now, you have to enter the verification pin provided to you at the time of registration.
  • Now click on the verify PIN tab.
  • After completing all your details, you can file income tax returns by clicking on the submit tab.

Required Documents

You will need some documents to meet the Federal Board of Revenue (FBR) criteria while filing for tax returns. Before starting, ensure you have the following documents near you. The documents you will need during the online process are

  • Your CNIC.
  • The phone number with SIM issue on your own CNIC.
  • Your Email ID.
  • Bank account statement.
  • Tax Deduction Certificate provided by the employer.
  • If you own a business, you must provide evidence of ownership of business premises.
  • You must provide the list of personal assets with their purchase value.
  • If you own a business, you must provide the paid utility bill of premises issued no longer than three months before the current date.

LEGAL QUERIES

Frequently Asked Questions

If you miss the income tax return due date, you can file a late return, but ensure you file it within 31 December of the relevant tax evaluation year. Some miss this date too, for genuine reasons.

There is an option to file a condonation of delay request. If the authorities delay the due date, you can file your income tax return application.

Anyone earning more than the income set by FBR and still not filing an income tax return may have to bear fine payments. The fine amount may vary depending on the delay time and the unpaid tax by an individual.

There is no fee for the NTN in Pakistan. You can get this certificate without paying a single penny.

Final thoughts

FBR made it mandatory for an individual whose annual income is Rs 600,000 or more to file for an income tax return. Many Pakistanis are unfamiliar with the income tax return filing process. We have discussed the detailed process to help you complete your income tax return form online.

Read the whole guide and follow the steps carefully to avoid confusion while filing an income tax return. I am optimistic that with our guide you can file your income tax return form without assistance. Give it a go.