How to File Income Tax Return in Pakistan 2026 - Step by Step Guide

Filing income tax returns in Pakistan can feel complicated the first time, but once you understand the steps it becomes routine. This guide explains the complete online filing process in simple language for salaried individuals, business owners, and freelancers.

⚠️ Filing Deadlines Change

In recent years, the statutory due date for individuals and AOPs has typically been around 30 September after the end of the tax year, with FBR sometimes extending deadlines through official notifications.Always check the latest FBR announcement for the current year instead of relying on a fixed calendar date.

Who Must File Tax Returns?

FBR requires returns from more people than just those above the basic tax slab. In practice, you may be legally required to file a return if you fall in any of these categories:

Your annual income is at or above the basic threshold notified by FBR for that year (for recent years, this has been around Rs. 600,000 for many individuals).
You own specified assets such as vehicles above a certain engine capacity or immovable property above defined size/value limits.
You run a business, are self‑employed, or earn professional / freelance income.
You already have an NTN or have been assessed to tax in previous years.
You want to appear on the Active Taxpayers List (ATL) to benefit from reduced withholding tax, even if your income is below the taxable limit.

💡 Pro Tip

Staying on the ATL can reduce tax deducted on banking transactions, vehicles, property transfers, and some investments, so many people file even when their final tax due is minimal.

Step-by-Step Filing Process

Step 1: Register on IRIS Portal

Visit: iris.fbr.gov.pk.
Click "Registration" or "Sign up" if you don’t have an account.
Enter your CNIC, mobile number, and email as asked.
Verify OTP codes sent to your phone and email.
Create a secure password and save it safely.

Step 2: Gather Required Information

Having the right data ready makes filing much faster.

Salaried individuals: Salary certificate or annual salary slip, record of tax deducted at source.
Business owners: Summary of sales/receipts, expenses, and if available, basic profit & loss and balance sheet.
Freelancers: Bank statements, export remittance details, and platform statements (e.g., Upwork, Fiverr, Payoneer).
Property owners: Rental income details, property ownership documents.
Everyone: Bank account details, information on vehicles, investments, and any advance or withholding taxes paid.

Step 3: Login and Start Your Return

Login to IRIS with your CNIC/NTN and password.
Open the Income Tax Return option for the relevant tax year.
Create a new return if no draft exists.
Select your category (salaried, business, or mixed income) as per portal options.

Step 4: Enter Income Details

For Salaried Individuals

• Add employer details where required (name, NTN).
• Enter total gross salary for the year as per salary certificate.
• Enter tax deducted by employer under salary head.
• Include any other income (e.g., bank profit, rent) in the correct sections.

For Business Owners / Freelancers

• Enter gross receipts or turnover for the year.
• Record allowable business expenses (rent, utilities, salaries, etc.).
• Let the system compute net profit or loss based on your entries.
• Add any tax already paid or deducted at source (e.g., bank withholding).

Step 5: Declare Assets, Liabilities & Expenses

For individuals, filing often includes a wealth statement showing what you own and owe.

Assets: Properties, plots, vehicles, bank balances, investments, significant cash, valuables.
Liabilities: Bank loans, personal loans, credit card balances.
Annual household expenses: Approximate yearly spending on living costs, utilities, education, etc.

Step 6: Let IRIS Calculate Your Tax

Based on the slabs and formulas configured for that tax year, IRIS will compute your tax payable or refund position automatically once all required fields are filled.

You can cross-check the result using an external tax calculator (like PakTaxCalc) to make sure numbers look reasonable before you submit.

Step 7: Submit & Save Acknowledgment

Use the preview option to review your full return and wealth statement.
If tax is due, generate a payment challan (PSID) and pay it through your bank’s supported channels.
After payment shows in IRIS, click "Submit" to file the return.
Download and save the acknowledgment and filed return PDF for your records.

Common Mistakes to Avoid

❌ Missing one or more income sources (e.g., rent, bank profit).

❌ Filing after the notified deadline without checking penalties or ATL impact.

❌ Entering unrealistic asset values that don’t match market or valuation tables.

❌ Not saving the acknowledgment or PSID/payment proof for future reference.

Penalties and Late Filing Risk (Overview)

Penalties for late or non‑filing are set in the Income Tax Ordinance and updated through Finance Acts and notifications. For individuals, recent guidance discusses minimum fixed penalties plus additional daily penalties linked to tax payable for continued delay.

Exact amounts depend on the year, your category (individual, AOP, company), and whether a notice was issued. To avoid surprises, treat the published deadline as strict and file as early as you can.

Benefits of Filing Tax Returns

✅ You appear on the Active Taxpayers List (ATL) for the relevant year, which often halves many withholding tax rates compared with non‑filers.
✅ Better documentation for visas, loan applications, and property purchases.
✅ Ability to claim refunds if too much tax was deducted at source.
✅ Reduced risk of penalties, default surcharges, or enforcement actions.
✅ Stronger financial profile for business, freelance, or corporate work.

Educational Disclaimer

This article is a general educational walkthrough of the online filing process and does not replace official FBR instructions or personalized advice. Exact thresholds, forms, deadlines, and penalties are defined in law and updated over time through Finance Acts and FBR notifications.

Before relying on any specific amount or date, review the latest information on FBR’s website or consult a qualified tax professional—especially if you have multiple income sources, large assets, or past compliance issues.

How to File Income Tax Return in Pakistan 2026 📋