How to File Income Tax Return in Pakistan

Who needs to file?

Under Pakistan's Income Tax Ordinance 2001, any individual whose taxable income exceeds Rs. 600,000 in a tax year is required to file a return, regardless of whether tax was already withheld by their employer. Filing is also how you get listed on FBR's Active Taxpayer List (ATL), which unlocks lower withholding rates on everyday transactions — see our filer vs non-filer guide for the numbers.

Step-by-step: filing on IRIS

Step 1 — Register on IRIS

Visit iris.fbr.gov.pk and click "Registration for Unregistered Person." You'll need your CNIC number, a mobile number, and an email address. FBR sends a verification code by SMS, and you'll set a login password.

Step 2 — Get your salary certificate

Request an annual salary certificate from your employer's HR or Finance department. It should show your total gross salary for the tax year (July–June) and the total tax already withheld and deposited by your employer on your behalf.

Step 3 — Open the Declaration form

Log in to IRIS and navigate to Declaration → 114(1) Return of Income Filed Voluntarily for a Tax Year (or the pre-filled "Salaried Individual" return if one appears for your profile). IRIS often pre-populates some fields using data already reported by your employer.

Step 4 — Fill in income and deduction details

Enter your gross salary, any exempt allowances (such as medical allowance up to 10% of basic), and eligible deductions like Zakat or approved pension contributions. IRIS calculates your tax liability automatically based on the year's slabs — you can cross-check the number against our calculator.

Step 5 — Submit before September 30

The filing deadline for salaried individuals is September 30 each year (FBR occasionally extends this by a few weeks — check fbr.gov.pk for official notices). Late filing attracts a penalty of Rs. 1,000 per day, capped at Rs. 50,000, and can also delay your appearance on the ATL.

Common mistakes to avoid

• Forgetting exempt allowances — medical allowance and certain reimbursements shouldn't be taxed if structured correctly.
• Mismatched figures — your declared salary should match what your employer reported via withholding statements, or IRIS may flag a discrepancy.
• Missing the deadline — even a small penalty adds up, and late filers can drop off the current year's ATL.
• Not claiming eligible deductions — Zakat, pension contributions, and approved donations directly reduce your tax bill; see our tax-saving guide.