Income Tax Return Filing in Pakistan

How to File an Income Tax Return to FBR, Pakistan?

(As Per Income Tax Ordinance 2001)

Income tax return filing in Pakistan normally starts from July every year. To file an income tax return is a statutory duty of every taxpayer. Proper income tax return filing is not an easy task, How to file an income tax return to FBR, Pakistan? Who has to file an income tax return to FBR, Pakistan? What are the Income Tax Filing requirements in Pakistan? We shall try to answer such questions, in this article.

All persons who fall under the Income Tax Ordinance 2001 category must file their income tax returns to the FBR, Pakistan. Every Taxpayer should have a basic understanding of how to file Income Tax returns to the FBR, Pakistan. If a Taxpayer fails to file his Income Tax Return to the FBR, Pakistan in prescribed time, he will be penalized.

What are the Tax Filing Requirements in Pakistan?

What is Filer vs Non-Filer in Pakistan?

The Government of Pakistan classifies Taxpayers as filer or non-filer. This means that a Taxpayer who has filed his Income Tax Return and all required documentation by FBR becomes a Tax filer in Pakistan. A Taxpayer who didn’t file his Income tax Return automatically becomes a Non-Filer. A Taxfiler in Pakistan has many benefits that a Taxpayer can enjoy in their day-to-day transactions, such as buying and selling property, cash withdrawals from Banks, Bank Profits, and Dividends. Two methods can be used to file Income Tax Returns in Pakistan. This will allow you to become a Tax Filer in Pakistan.

How to File Online Tax Returns?

Taxpayers must have valid NTN in order to file an Income Tax Return. To create a login in IRIS, Taxpayer must register his details with the FBR. Taxpayers can access the FBR system to file their Income Tax Returns. After logging in to the FBR System, the taxpayer completes all information required by FBR. Finally, he submits his Income and Wealth Statements.

Filing tax returns: What documents are required to become a Pakistani Filer?

The Tax checklist is a guide to help you collect all the necessary documents and forms to file your Income Tax Return.

Your Information

FBR IRIS Login should be a mandatory item on your tax preparation checklist. The following information is required by all taxpayers.

Your Login USER ID
Password
Diverse income sources
The source of income of the person is what determines the required forms and documents.

For Becoming Filers, Documents are Required by Salary Individuals/ Employed In Pakistan

Certificate for tax deduction in the financial year * (July through June)
Keep track of all tax payments in cash withdrawal, banking instruments, children school fee, mobile and telephones, motor vehicle registration and token, purchase, and sale of property, etc
Any additional source of income (Rents, Bank Profits and Dividends, Prize Bonds, Foreign Income or Capital Gain, Gift, Inheritance, if any)

For Individuals who are self-employed or Business owners, the Documents Required to file a Tax Return in Pakistan

Income records are used to verify amounts (Accounts, Business Bank Statements, etc.
Keep track of all expenses — credit card statements, cheque registers, credit cards statements, salary Expenses and rent Expenses. Also keep records about communication Expenses.
Information about business-use assets (cost, date of service, etc. for depreciation
Information for the office at home, if applicable
Record of all tax payments in cash withdrawal, banking instruments, electricity, children school fee, mobile and telephones, motor vehicle registration and token, purchase and sale of property etc
Any additional source of income (Rents, Bank Profits and Dividends, Prize Bonds, Foreign Income or Capital Gain, Gift, Inheritance, if any)

Documents Required for Taxpayers with Rental Income only

These are the documents you will need to file in Pakistan:
- Keep track of your income and expenses
- Information about rental assets (cost, date of service, etc. for depreciation
- Record of tax payments made in the Financial Year July-June
- Any additional source of income (Bank profits, Dividends, Prize Bonds or Foreign Income, Capital Gains, Pension, Gifts, Inheritance, if any)

Required Documents for a Pakistani Pensioner to File Tax Return

- Retirement benefits/pension/annuity income
- Social security income (if applicable)
- Record of all Tax Payments Made During the Financial Year
- Any additional source of income (Rents, Bank Profits and Dividends, Prize Bonds, Foreign Income or Capital Gain, Gift, Inheritance, if any)

Documents Required for Investors for Filing of Income Tax Return

The following documents are required for investors in Savings and Investments or Dividends:

Dividend income and interest

Stocks or other properties can generate income
Dates of acquisition, records showing your cost of purchase, or any other basis for the property you have sold
Your investment expenses