How to file your Income Tax Return in Pakistan?
User Guide for Filing Tax Return in FBR
For filing your Income Tax Return, the first step is to register yourself with the Federal Board of Revenue (FBR). For Income Tax Registration, an individual can register online through IRIS Portal, whereas the principal officer of AOP (Association of Person) and Company need to visit their Regional Tax Office (RTO).
LOGGING INTO THE IRIS PORTAL
File your Income Tax Return online by logging into the IRIS Portal. IRIS is an online portal where the filing and submission of Income Tax Returns take place.
If you are a first time Income Tax filer, registration will be mandatory for filing your Income Tax Return.
After registering once, you can log into IRIS and file your Income Tax Return. Individuals having obtained their National Tax Number (NTN) or Registration Number but do not have credentials to log into the portal can get access by clicking on ‘E-Enrollment for Registered Person’.
PASSWORD FOR IRIS LOGIN
You can login to IRIS by entering your NTN or Registration Number and password, received through E-enrollment with the Federal Board of Revenue (FBR).
RESET PASSWORD: If you need to reset your password to gain access to the IRIS portal, you can click ‘Forgot Password’ on the Iris login screen and enter all the data in the required fields.
The code will be sent to your email address or mobile number. Enter this code in the provided fields. A new window will open in which you will be given the option to reset your password.
CHANGE PASSWORD FOR IRIS: Your password can be changed by logging into IRIS and clicking ‘Change Password’ on the top right of the screen. Enter the required information in the dialog box opened.
CHANGE PIN FOR IRIS: Your PIN can be changed by logging into IRIS and clicking ‘Change Pin’ near the top of the screen. Enter the required information in the dialog box opened.
COMPLETING INCOME TAX RETURN
To file your Income Tax Return online, you must complete the Return of Income form and Wealth Statement (statement of assets & liabilities) form. To facilitate the taxpayers, the Knowledge Base portal provides step by step written and video guides on filing Income Tax Return and Wealth Statement.
Successful submission of Income Tax Return and Wealth Statement in IRIS is confirmed when both the forms have moved from the Draft folder to Completed Task section.
RECONCILIATION OF WEALTH STATEMENT
Wealth Statement will only be successfully submitted and reconciled if and when your current year’s wealth has increased/decreased from the previous year’s wealth by the same amount as your income has increased/decreased from your expenses. Failure to reconcile wealth statement will disallow you to submit your Income Tax Return.
FILING INCOME TAX RETURN AS A SALARIED PERSON
To facilitate salaried persons in filing their Income Tax Return, a declaration form 114(I) has been provided Tax Authorities. The salaried person would need to complete the Declaration form 114(I) in order to successfully submit their Income Tax Return. Persons who are deriving income only from salary and other sources, where salary is more than 50% of Income can avail this form.
REVISING THE INCOME TAX RETURN
An Income Tax Return can be revised within five (5) years of being originally filed to correct any omission or wrong statement discovered later on. In order to revise the Income Tax Return filed, the individual has to file an application for revision in IRIS. After approval of your application, you can file a revised Income Tax Return in IRIS portal.
REVISING THE WEALTH STATEMENT
A Wealth Statement (statement of assets and liabilities) can be revised in IRIS before receipt of the notice under sub-section (9) of section 122 of the Income Tax Ordinance 2001 without the need to file an application seeking approval for revision.
FILING INCOME TAX RETURN AFTER DEADLINE
To file your Income Tax Return online after the deadline, you would still have to complete the filing of the Income Tax Return as described above.
RECORD KEEPING FOR INCOME TAX RETURN
Persons having taxable income are bound to keep Income Tax Return records for a minimum of six (6) years.
PERSONS OBLIGATED TO FILE THE INCOME TAX RETURN
You might be obligated to file your Income Tax Return if you fall under a certain category slab for as per your salary or have income up to a certain threshold.
CREDITS, REBATES AND EXEMPTIONS FOR INCOME TAX RETURN
You can avail Tax Credits, Rebates and Exemptions only if you are an Active Taxpayer.
PRIVACY OF PERSONAL INFORMATION
Your personal information shared by you will not be disclosed to anyone except the tax officials.
PENALTY FOR NOT FILING INCOME TAX
By not filing your Income Tax Return in spite of having taxable income, you will be liable to the penalty and prosecution under the provisions of the Income Tax Ordinance 2001.