Every year, millions of salaried individuals, freelancers, and business owners across Pakistan are required to file an income tax return with the Federal Board of Revenue (FBR). Yet many people either skip it — not knowing they're required to — or find the process confusing and intimidating.

The good news: filing your income tax return is far simpler than most people expect, especially if your income is purely from salary. This guide will walk you through the entire process, from getting your NTN to submitting your return on IRIS.

Who Is Required to File an Income Tax Return in Pakistan?

Under the Income Tax Ordinance 2001, the following individuals are required to file an annual income tax return:

Even if your income falls below the taxable threshold, filing a return is strongly recommended. Being an active filer keeps you on the Active Taxpayer List (ATL), which results in significantly lower withholding tax rates on banking transactions, property dealings, and vehicle purchases.

Did you know? Non-filers pay double the withholding tax on banking transactions above Rs. 50,000, pay higher rates when purchasing property or vehicles, and face restrictions on certain government contracts. Filing a return — even if no tax is owed — costs you nothing but protects your financial interests significantly.

Before You Begin — What You'll Need

Gather the following documents and information before sitting down to file your return:

Step-by-Step: How to File Your Income Tax Return on IRIS

Step 1

Register on FBR IRIS & Get Your NTN

If you don't already have an NTN (National Tax Number), visit iris.fbr.gov.pk and click on "Registration for Unregistered Person." You'll need your CNIC, a mobile number linked to your CNIC, and an active email address. Once verified, your NTN is instantly generated — typically the same as your CNIC number. If you already have an NTN, simply log in to IRIS with your credentials.

Step 2

Select the Correct Return Form

After logging in, click on "Declaration" in the top menu, then select "Return of Income." Select the correct tax year — Pakistan's fiscal year runs from July 1 to June 30, so the FY 2024-25 return covers July 2024 to June 2025. For most salaried individuals, you will use the simplified ITR-1 form.

Step 3

Enter Your Income Details

In the "Income from Salary" section, enter your total gross salary for the year as shown on your salary certificate. Then enter any other income sources — rental income, freelance/business income, profit on debt, dividends, capital gains, etc.

  • Enter gross salary (before any deductions)
  • Add any allowances that are not exempt
  • Enter employer's withholding tax deducted (from salary certificate)
Step 4

Declare Your Assets and Liabilities

This section is mandatory. You must declare all assets you own as of June 30 of the tax year — property, vehicles, bank balances, investments, cash in hand, jewelry (above Rs. 500,000), and foreign assets. Liabilities such as outstanding loans must also be declared. Inaccurate asset declarations are one of the most common reasons for FBR audit notices.

Step 5

Claim Deductions and Tax Credits

This step can reduce your tax liability significantly. Common deductions available in Pakistan include:

  • Pension fund contributions — deductible up to Rs. 2 million or 20% of income
  • Donations to approved charitable organizations
  • Housing loan markup — up to Rs. 2 million deductible
  • Education expenses for children in certain cases
  • Medical expenses (in specific circumstances)
Step 6

Review, Verify, and Submit

IRIS provides a summary screen showing your total income, tax payable, withholding tax already paid, and any remaining liability or refund. If tax is owed, pay it via a challan before submitting. Click "Submit Return" to file and save your acknowledgment slip — this is your proof of filing.

⚠️ Important Deadline: The return for FY 2024-25 is typically due by September 30, 2025. Late filing results in a penalty of Rs. 40,000 or 0.1% of taxable income (whichever is higher) per year of delay, and exclusion from the ATL for that year.

Common Mistakes to Avoid When Filing

How EmpowerTech Innovations Can Help

If your tax situation is complex — multiple income sources, foreign assets, business income, disputed withholding tax — EmpowerTech Innovations provides complete income tax return filing services. Our tax professionals handle the entire process, ensuring accuracy, compliance, and maximum legitimate deductions. We also assist with NTN registration, ATL verification, FBR audit responses, and tax year amendments.

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