Filing Tax Returns in Pakistan for 2025: Everything You Need to Know
You want to file a return or just learn about it? Here are the complete details for you!!
Submitting an income tax return in Pakistan is both a legal obligation and a wise financial decision. Becoming a filer brings multiple advantages such as reduced tax rates, smoother access to loans and visas, and inclusion in the Active Taxpayers List (ATL). In contrast, non-filers face higher withholding taxes, penalties, and restrictions on various financial services.
For the Tax Year 2025 (covering 1 July 2024 – 30 June 2025), the Federal Board of Revenue (FBR) has launched a Simplified Electronic Return through the IRIS system. This has made filing easier for salaried employees, freelancers, pensioners, property holders, and service providers. The deadline to file is 30 September 2025. This guide will walk you through eligibility, required documents, and the step-by-step filing method so you can complete the process smoothly.
Contents: (Inside This Tax Filing Guide)
- Eligibility: Who Is Required to File Income Tax Return in Pakistan?
- Documentation Needed for Filing Income Tax Returns in Pakistan
- Step-by-Step: Filing Tax Returns on IRIS Portal
- Some concepts you need to know
- Help and Support
- Filer vs Non-Filer Comparison
- Tips for Smooth Filing
- What If You Owe Extra Tax?
- Checking Your Filing & ATL Status
- IRIS Login Issues & Fixes
- Why Filing Actually Saves You Money
- Common Mistakes to Avoid
- Updates & Changes
Eligibility: Who Is Required to File Income Tax Return in Pakistan?
In Pakistan, not everyone is legally bound to file. Below are the main categories required to submit returns:
1. Salaried Individuals
If you are employed and your yearly income is above the exemption limit fixed by FBR, you must file. The limit may change annually; in recent years, it has been between PKR 600,000 and 1,200,000.
2. Businesses (Sole Proprietors, Partnerships, Corporations)
All businesses must file regardless of profits or losses. This includes:
- Sole proprietorships – Individuals running their own businesses.
- Partnerships – Two or more owners sharing business responsibility.
- Corporations – Registered private or public limited companies.
3. Freelancers and Independent Contractors
Freelancers and contractors—such as IT service providers, consultants, and digital workers—must file if earning taxable income. This covers income from platforms like Fiverr, Upwork, or direct client contracts. Both local and foreign income must be declared.
4. Owners of Immovable Property and Vehicles
If you own land, buildings, or vehicles above 1000cc, you are required to file as these assets show significant financial standing.
5. Individuals with Major Transactions or Investments
People involved in large financial dealings, property sales/purchases, or stock market investments must file. FBR uses these transactions to track taxable income.
Documentation Needed for Filing Income Tax Returns in Pakistan
For Salaried Individuals
- CNIC
- Salary Slips
- Bank Statements
- Tax Deduction Certificates
- Investment Records
- Utility Bills
- Rental Income Receipts
For Business Owners / Sole Proprietors
- Color copy of CNIC
- Rent agreement or ownership proof of business premises
- Business letterhead with full contact details
- Most recent electricity bill
- Valid phone number & email
- Keep copies of all records submitted
- Ensure FBR registration and timely filing to avoid penalties
For Freelancers / Self-Employed
- Required documents: invoices, contracts, bank statements, expense records, CNIC, NTN
- Declare total receipts and deduct business expenses in IRIS
- Income from Payoneer, JazzCash, or foreign clients is taxable if received in Pakistani banks
For General Individuals (Non-Salaried)
- Includes pensioners, landlords, or those earning through investments
- Required documents: rental agreements, rent slips, pension proof, dividend/capital gain statements, CNIC, NTN
- Income to be reported under relevant IRIS tabs (Property, Other Sources, etc.)
Step-by-Step: Filing Tax Returns on IRIS Portal
Step 1: Visit IRIS Portal → https://iris.fbr.gov.pk/public/txplogin.xhtml
Step 2: Log in using CNIC and password (reset via “Forgot Password” if needed)
Step 3: Go to → Declaration > Income Tax Return > Select Tax Year 2025
Step 4: Fill required tabs:
| Tab Name | Who Fills | Details to Include |
|---|---|---|
| Employment | Salaried persons | Salary details, tax deducted, employer NTN |
| Business | Freelancers, businesses | Income, expenses, profit/loss |
| Property | Landlords | Rental income, property value |
| Capital Gains | Investors | Gains/losses from shares & real estate |
| Other Sources | All | Bank interest, foreign income |
| Tax Credits | All | Donations, Zakat, insurance, pensions |
| Assets/Liabilities | Individuals/businesses | Bank balances, vehicles, gold, property |
Step 5: Cross-check withholding data automatically imported by IRIS in adjustable taxes.
Step 6: Validate & Submit → Download acknowledgment receipt in completed tasks.
Some Concepts You Need to Know
Withholding Taxes: Collected on salary tax, bank profit tax, card transactions, etc.
Tax Credits & Tax Relief: It is on tuition fees, donations, zakat, teacher/researcher relief.
Wealth Statement: Final enteries in return & Record of assets, liabilities, net worth changes.
Capital Assets: Section 7E exemption for one property.
Help and Support
| Option | Description |
|---|---|
| FBR Helpline/ FBR site | For portal and filing guidance |
| Tax Consultants e.g Tax Goshwara | For professional help in complex cases |
| IRIS Portal FAQs | Built-in guides and tutorials |
Filer vs Non-Filer: Financial Impact Summary
| Action | Filer | Non-Filer |
|---|---|---|
| Withholding Tax | Reduced rates | Higher rates |
| Car Registration/Transfer | Standard | Restricted/Extra fee |
| Property Dealings | Lower tax | Higher tax/restricted |
| Bank Transactions | Normal | Higher withholding |
| Loans/Leasing | Accessible | Often restricted |
Tips for Smooth Filing
- File before 30 September
- Save digital & physical copies of your receipt
- Use a PC instead of mobile
- Seek FBR or consultant help (if required)
What If You Owe Extra Tax?
- Generate PSID in IRIS
- Pay via 1Link banks, online or mobile banking
Checking Your Filing & ATL Status
- Verify via ATL portal
- Download certificate from IRIS under “Completed Tasks”
IRIS Login Issues & Fixes
- Invalid password → case-sensitive
- Forgot password → reset option
- Account locked → wait 24 hours or reset
- Portal not loading → try Chrome/Edge, incognito, clear cache
Why Filing Actually Saves You Money
- Reduces withholding taxes
- Helps with bank loans and credit cards
- Strengthens credibility for visas and licenses
- Allows claiming refunds
Common Mistakes to Avoid
- Wrong or incomplete income reporting
- Ignoring deductions like zakat, education fees
- Last-minute filing delays
- Data mismatches between documents and portal
Updates & Changes
FBR keeps revising tax slabs, allowable deductions, and portal features. Always review FBR’s official notifications or consult a professional before filing.
