Guide on How to File Income Tax Returns in Pakistan
Filing deadline is on the head, so file your tax returns for income now!
Still haven’t sent in your annual tax return? Do it right away, because the deadline is in just two days. Sources from the Federal Board of Revenue (FBR) claim that no further extension in time for filing income tax return is on the cards. So, you need to file before December 15, 2022, to be in time.
Continue reading this post to find out everything you need to know about filing your income tax return for tax year 2022.
Before we get into the details of the process, it’s important to note that everyone in Pakistan who makes more than PKR 300,000 a year must file a tax return. If your annual income is more than this amount and you haven’t filed taxes yet, you’re in luck. We have a detailed guide on Who must file return of income in Pakistan to become filer that will walk you through the whole process. Also, filing income taxes in Pakistan has a lot of benefits, such as tax credits, adjustments, exemptions, and many more.
Now, let’s get started with our step-by-step guide on how to file income tax returns in Pakistan.
Process to File Income Tax Return Online in 2022
Online filing of tax returns has become a pretty simple process. By going to the Federal Board of Revenue website, anyone can now easily file their taxes online. Here’s how to file your taxes in Pakistan.
How to Sign into IRIS Portal and File Income Tax Return
- Log in to Iris before you file your tax returns. Iris is a website where you can file your income tax return.
- Type in your login name and password.
- Click “Forgot password” if you can’t remember your password.
- Once you have logged into the portal, go to the top of the portal and click on the “Declaration” menu.
- Choose the “114(1) Return of Income Filed Voluntarily for 1 Year”)” tab under “Forms.”
- Click on the Period tab, where you need to enter the Tax year i.e. 2022.
Now, you’ll see a page where you can click on Employment section.
Choose the Salary tab.
In the “Total Amount” box, enter the salary income for the year.
If your salary includes a tax-free amount like medical allowance, kit allowance, IS allowance, ration allowance etc., you should write it under the heading “Amount exempt from tax.”
Click the Calculate button when you’re done.
One you press the calculate button, the software shall make auto computations and you will see the amount of total salary, exempted amount and the taxable amount. Then, click on the save button.
Click on the Tax Chargeable/Payments tab and then click on the Deductible Allowances tab. This is where you should enter any amount that is deducted for Zakat or charitable donations. Such amount shall be reduced from your taxable income. It means you tax liability shall be reduced as your taxable income has been decreased.
Fill out the fields for Tax Charged, Tax Reductions, Tax Adjustments, and Tax Credits in the same manner.
On the Adjustable Tax screen, you need to fill in the details of the taxes that have already been charged to you during the tax year.
You can also change how much tax your bank takes out of different sections, like when you take cash out of the bank.
You can also change the amount of tax that your bank took out of the registration fee, transfer fee, sale, or lease of a motor vehicle.
You should write the figure of tax deducted from your salary against code 64020004.
Tax Chargeable / Payments
If you click on the Tax Chargeable/Payments tab, you can see all the information about your income and tax.
Look at the tabs labelled “Admitted Income Tax against code 9203” and “Refundable Income Tax code 9210.”
If there is a balance against admitted income tax column, you must pay it and attach the appropriate CPR.
Net Assets
Click on the Personal Assets menu to tell FBR about your property.
Enter the total amount for last year’s net assets if you are filing for the first time. Otherwise software shall fetch these automatically. Iris shall calculate the current year assets itself by reducing the current year expenses from current year inflow.
On reconciliation tab, under inflow section, punch the amount declared as taxable, exempt from tax, amount subject to fixed/final tax and any gift and remittance received in this year.
Under outflow section, write the amount you gifted during the year. Iris shall fetch in expenses from the relevant section.
After putting in all the information, click the Calculate button.
When filing income tax returns, the “Unreconciled Amount” field must be blank.
Payment of Admitted Tax
When you have paid the admitted Tax either through the Alternative Delivery Channel (ADC) or in cash by visiting any bank , you need to send in the following information about your return.
Click on the Payments tab and then the plus sign in the upper right corner.
A box that asks for payment information will pop up.
Type in the CPR number, amount code, or amount paid, and then click on the search button.
When you click the OK button, a list of all the details of your payment will appear.
Go back to Data Tab, press calculate button and you would there would be no figure against admitted income tax.
Save the data and press verification tab o verify the identity and information you provided in the return.
Verification of Income Tax Return Form
- Once you have added and calculated all of the required fields, you should now verify your identity.
Your name and number of registration will already be filled in.
Enter the verification pin you received from FBR at the time of registration for income tax, click on the Verify Pin tab.
After verification, hit submit button to file your income tax returns
This was a full guide on how to file Pakistani online income tax returns. We hope this article helped you. Send us an email at info@4sytebiz.com if you have any questions.
You might also be interested in getting our paid services for tax planning, wealth management and taxation related issues. Feel free to contact.
Also, go to 4SYTE Bolg, if you want to read more taxation and business guides and property news. Sign up for our email newsletter if you haven’t done so already,
