Filing income tax returns in Pakistan has become much easier with the availability of online platforms. The Federal Board of Revenue (FBR) has developed the IRIS system, a user-friendly portal that allows taxpayers to submit their income tax returns from the comfort of their homes. In this comprehensive guide of How To File Income Tax Returns Online in Pakistan, we will walk you through each step of the process, helping you file your taxes correctly, avoid penalties, and ensure compliance with Pakistani tax laws.
Why Filing Income Tax Returns is Important?
Filing your income tax return is a legal obligation for individuals and businesses who meet certain income thresholds or own specific assets. However, beyond legal requirements, there are several benefits to filing taxes, including:
- Avoiding penalties: Filing on time prevents fines and ensures you remain on the Active Taxpayer List (ATL).
- Eligibility for loans and visas: Banks and embassies often require proof of tax filings for loan approvals and visa processing.
- Tax refunds: If you’ve overpaid taxes through withholding, you may be eligible for a refund.
Moreover, timely and accurate tax filing is a key responsibility that helps fund public infrastructure and services.
Step-by-Step Guide to Filing Income Tax Returns Online in 2024
Step 1: Gather the Necessary Documents
Before you start the online filing process, make sure you have all the required documents ready. Here’s a list of documents you’ll need:
- National Tax Number (NTN): If you don’t have an NTN, you can register for one on the FBR website.
- Computerized National Identity Card (CNIC): Required for identification.
- Bank statements for the tax year you’re filing.
- Salary certificate if you’re a salaried individual.
- Business income records if you’re self-employed.
- Expense records such as utility bills, rent receipts, and medical bills.
- Investment details (e.g., dividends, stock market investments).
- Previous year’s tax return (optional, but useful for reference).
It’s important to have these documents in order, as you’ll need them to fill out the tax forms correctly.
Step 2: Register on the FBR IRIS Portal
If you’re filing taxes for the first time, you will need to register on the FBR IRIS Portal. Follow these steps:
- Visit the FBR IRIS Portal: Go to IRIS FBR Portal.
- Click on “Registration for Unregistered Person”: This will open the registration form.
- Fill in the required details: Enter your CNIC, mobile number, email address, and any other necessary information.
- Create a strong password and submit the form.
- Receive your NTN: Once registered, you’ll receive your National Tax Number (NTN) and login credentials.
If you’re already registered, simply log in with your NTN and password.
Step 3: Log Into the IRIS Portal
Once you have your login credentials, follow these steps to access your account:
- Visit the IRIS Portal and log in using your NTN/CNIC and password.
- Once inside, you’ll see a dashboard that gives you access to various forms and tools needed to file your return.
Step 4: Select the Appropriate Tax Form
After logging into the IRIS portal, the next step is to choose the correct form based on your income source. This is crucial for ensuring that your tax return is processed correctly.
- Salaried Individuals: Choose Form 114(I), which is for individuals whose primary income comes from employment.
- Business Individuals and Self-Employed: Choose Form 114(II) for individuals whose income comes from a business or self-employment.
- Wealth Statement: If you own assets like property, you may also need to submit a Wealth Statement (Form 116).
After selecting the correct form, you’ll be asked to input information regarding your income, deductions, and assets.
Step 5: Fill Out the Tax Return Form
Now, it’s time to fill out the form accurately. Here’s what you’ll need to do:
- Enter Personal Information: Update your CNIC, address, and other personal details.
- Report Income: Enter all income details, including salary, business income, property rentals, and any other sources of income.
- Input Tax Deductions: Include deductions such as Zakat, charitable donations, and any advance taxes you’ve already paid.
- Declare Assets and Liabilities: Enter information about your assets, such as property, vehicles, and investments.
- Calculate Tax Liability: The IRIS portal will automatically calculate your tax liability based on the information provided.
Step 6: Submit the Tax Return
Once you’ve filled out the form, review it carefully to ensure everything is accurate. Errors or omissions could delay the processing of your return or lead to penalties.
- Submit the Return: Once you’re satisfied with the accuracy of your form, click the Submit button on the portal.
- Receive Acknowledgment: After submission, you’ll receive an acknowledgment receipt. Be sure to download and save a copy for your records.
Step 7: Payment of Taxes (If Applicable)
If the system calculates that you owe taxes, you’ll need to pay the amount via the following steps:
- Generate a Payment Slip ID (PSID): This will be provided by the IRIS system after submission.
- Visit a Bank or Use Online Banking: Take the PSID to a designated bank or use online banking to complete your payment.
- Confirm Payment: Once the payment is made, you’ll receive confirmation, which you can use to update your return if needed.
Step 8: Track Your Tax Return Status
After submitting your return, it’s important to log back into the IRIS portal periodically to track the status of your return. You can view whether your return has been processed and if there are any issues that need to be addressed.
Common Issues and How to Avoid Them
Filing tax returns online can sometimes present challenges. Here are a few common issues and how to avoid them:
- Incorrect Information: Double-check all details before submission to avoid errors.
- Missing Deadlines: The deadline for 2024 is September 30, but filing early can help avoid last-minute issues.
- Forgotten Password: If you forget your IRIS portal password, use the “Forgot Password” feature on the login page.
FAQ Section
1. What happens if I miss the tax filing deadline?
If you miss the deadline, you could face fines, penalties, and even be removed from the Active Taxpayer List (ATL), which affects your ability to apply for loans or visas.
2. Do I need to file a tax return if I have no taxable income?
Yes, even if you don’t have taxable income, you must file a return if you own certain assets or have an NTN.
3. How do I pay my taxes after filing?
After submitting your return, the system generates a PSID, which you can take to any designated bank or pay through online banking.
4. Can I amend my tax return after submission?
Yes, you can amend your tax return by logging into the IRIS portal and updating the information, but this must be done within the allowed timeframe.
5. How To File Income Tax Returns Online in Pakistan
To File Income Tax Returns Online in Pakistan Login to IRIS portal and follow the detailed steps provided in this guide.
