How to file income tax return online in Pakistan

Every year, millions of taxpayers submit their tax returns to the government using income tax return forms. If you are wondering how to file income tax return online in Pakistan, then you are in the right place. This article will discuss the best ways to file your tax return in 2022.

What is FBR:

The Pakistan government has taken a new initiative of ‘FBR’ that is the Federal Board of Revenue. This is a high authority that is charged with collecting revenue and taxes from the general public of the country. This is a program that has been introduced in the year 2017 and is the first time that a government has taken such a step to track tax.

According to the most recent announcement, the Active Taxpayers List (ATL) for Tax Year-2020 is accessible on the FBR’s official website. On February 28, 2021, 2.62 million people filed for tax returns for the Tax Year 2020, compared to 2.43 million for the Tax Year 2019. Tax Year 2020 had PKR 49.6 billion in tax payments made with returns, a 60% increase over Tax Year 2019 up to February 28, 2020.

The FBR is urging those taxpayers who have yet to file income tax return for Tax Year 2020 to do so with the ATL surcharge. According to a clarification by the Federal Board of Revenue, salaried individuals are exempt from updating their tax profiles under section 114A of the Income Tax Ordinance, 2001. (FBR).

It’s also important to note that Pakistan Revenue Automation Limited and the tax department worked together to create the software for online income tax appeals. According to the report, the new automated mechanism will allow iris taxpayers to submit electronic requests on the FBR’s Iris web portal.

Before diving into the process’s specifics, you must know how to submit income taxes. It is simpler to file taxes online after being a regular filer. Let us walk you through the process of filing income tax returns.

Process For Online Filing Of Income Tax Returns

Online income tax return filing has gotten a lot simpler. Everyone can quickly file their taxes online by going to the Federal Board of Revenue website. Income tax is an essential national obligation. Under the latest tax laws, the income tax department in Pakistan is making it easy for citizens to file their tax returns. Here are the step-by-step instructions for logging into the IRIS portal and filing your taxes.

IRIS Portal Login Instructions for Filing Income Tax Returns

IRIS Portal is a one-stop solution for filing your individual income tax returns in Pakistan. You can access The IRIS Portal by logging into the website’s portal. This article will guide you through the process of logging in and filing your tax return.

Log into Iris before filing any tax returns. One can do online filing of tax returns by using Iris. To reset your password, click the “Forgot password” link. If you are facing any difficulty then it’s best for to get tax services from CMA Law Associate.

Once you have logged in successfully, select “Declaration” from the menu at the portal’s top.

Choose the ‘114(1) Return of Income Filed Voluntarily for 1 Year’ tab under Forms.

You must enter the Tax year by clicking the Period tab. After that, you are good to go now. 

Guidelines on how to register yourself in the Employment Section

To file income tax return in Pakistan, complete the employment part of the form.

  1. In the Total Amount column, enter the salary’s annual income. 
  2. When the new page loads, click the Employment section.
  3. Go to the Salary tab.
  4. In the Total Amount column, enter the salary’s annual income.
  5. Mention the amount exempt from tax under the title “Amount exempt from tax” if your pay contains the exempted amount.
  6. Once finished, select the Calculate option.
  7. Fill out the input fields with the total tax, the amount subject to final tax, and the amount exempt from taxation, then click the Calculate button. 

While many tax deductions are available to individuals, they differ significantly from one person to the next. That’s why it’s essential to understand the difference between deductible and adjustable tax. Many people mistakenly think they can deduct the same tax from their incomes yearly, but that’s not always the case. These fundamental differences can significantly impact your tax bill, so let’s explore.

How to Calculate Amount Of Tax Deducted And Adjustable Tax

There are a lot of tax deductions and exemptions in the country. From income to sales tax, there are many ways to keep your taxes low. It’s essential to know the exact amount of tax you are paying, and you can do that by calculating your Adjustable Tax and Adjustable Tax Deductions. You can now calculate the Amount Of Tax Deducted And Adjustable Tax by the following method:

Variable Tax

To calculate the variable or adjustable tax, login to the IRIS portal. In the Adjustable Tax section, you must enter the specifics of the taxes that have already been assessed against you or charged you during your tax year. 

  1. Select the Deductible Allowances tab from the Tax Chargeable/Payments page to enter any deductions made for Zakat or charitable contributions.
  2. Complete the fields for Tax Chargeable, Tax Reductions, Adjustable Tax, and Tax Credits.
  3. On the Adjustable Tax screen, you must enter the specifics of the taxes that have already been assessed against you or charged you during your tax year.
  4. If you work for the federal government, input your tax payment using the 64020001 code.
  5. Enter the tax amount against 64020002 for provincial government employees.
  6. If you work for a corporation, submit your tax amount using the 64020003 code.

If you live in Pakistan and own assets such as cars and motorcycles, you need to register them with the State Bank of Pakistan. In the coming section of this article, we’ll review the process of registering assets in Pakistan and how to register them.

How to register your cars and other assets: 

Here’s how to register your cars and other assets in Pakistan.

You can change the tax your bank deducts from specific parts, such as when you take money from the bank in 64100101. The code 64151501 should be used for additional banking transactions, such as savings or bonds. Moreover, you can compare the tax deducted by your bank for motor vehicle registration, transfer, sale, and leasing to the relevant codes.

A dialogue box will ask for information about the car, such as the E&TD Registration Number and further details on the brand, model, and engine size. When you’re finished, select Calculate Tab from the menu. As a result, your tax will be calculated. 

Every year, millions of people in Pakistan use the legal system to register their net assets. If you are interested in this area of law, here’s what you need to know to register your net assets in Pakistan.

How to register your net Assets

Registering your net assets in Pakistan is slightly different than in other countries. There are essential documents that you’ll need to have and bank details that you need to input. This process can be confusing, but you don’t have to do it yourself. Here’s a step-by-step guide to registering your net assets in Pakistan.

  1. To provide details about your assets, select the Personal Assets tab on
  2. Add the total of the current year’s net assets and the prior year’s net assets.
  3. In the field for inflows and outflows, enter the amount of annual income.
  4. After entering all the information, click the Calculate button.
  5. After adding and computing the values for all the necessary fields, you should now confirm your identification.
  6. There will already be information for your name and registration number.
  7. When prompted, enter the verification pin you were given when registering, then select the Verify Pin tab.
  8. After receiving the information, select the Submit option to begin filing your income tax forms. 

To file your income tax return online, you must have a National Tax Number (NTN) and an activated e-Filing account. You can obtain your NTN by registering on the Federal Board of Revenue’s (FBR) website. The entire process of filing your income tax return online is simple, and we walk you through each step in this guide. Once you have completed the process, you can relax knowing that your taxes are taken care of and updated for the current year.

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