Guide on how to file income tax returns in Pakistan?

Steps are being taken in Pakistan by the federal government to document the economy, people who have had this responsibility for the first time are especially worried and everyone seems to be asking how to file income tax returns.

An income tax return is actually a tax form that provides details of income earned during a financial year.

Some relief promises have been made to income tax return filers in Pakistan, which has led to an increase in the number of tax return filers.

Since the computerization of the income tax return filing system in Pakistan was introduced, the process of filing returns has become much easier and it is even easier for the salaried class to file income tax returns.

If you have knowledge of Internet usage, you can submit a tax return without the assistance of an expert.

Through this article, we are trying to create awareness among the salaried class about the procedure for filing income tax returns.

How to file an income tax return

Go to the website first

If you want to file a tax return, you must visit the special website created by the Federal Board of Revenue (FBR) at www.iris.fbr.gov.pk. Various links are provided on the website portal. If you are filing a return for the first time and you have not yet registered your NTN, then you have to click on Registration for Unregistered Person. This form must provide a computerized ID card number, full name, mobile phone number along with the name of the mobile network company.

Obtain a verification code

After entering these details, you will receive separate verification codes on your mobile phone and email. The FBR will issue you a password when you enter these PIN codes on the website.

A person who wants to file a tax return will log in to the system after entering his / her ID card number and password issued by the FBR.

Registration

Person who has done manual registration have to click on E-Enrollment For Register Person. After providing personal information on the portal, a form will open in which the details of residence will have to be entered and thus the process of electronic registration will be completed.

Enrollment process

After registration, Draft will be displayed on the left side of the computer screen, which when clicked will open the Application For Registration dialogue box. Your details will be requested here, including the home address, ownership or rental area. After entering these details, there will be a checkmark, after which click on Submit and thus the e-enrollment process will be completed.

Choose the option you want

Then at the top left of the screen, you will see Declaration written. When you click on it, a dialogue box will open in front of you regarding Income Tax. You will see various options written on it.

Important step

Clicking on the selected option will open a new dialogue box on the screen and enter the year for which you are submitting a return. After which after clicking on the Data button on the screen, we will click on Salary and pay the code 1009, allowances 1049, expenses paid by the company (medical education etc.) 1059, the code if the government employee has got a car. 1089 and if other benefits are received, including termination payments, it will be recorded in code 1099. In addition, if any amount has been received which is not taxable, it will also be registered. This amount is usually in the form of graduation or bonus etc. After entering all these details, the total amount, tax-exempt amount and taxable income will be calculated in the pay code 1000.

Use a calculator

Double-clicking the calculator on the right as well as entering the amount each time will show the taxable income after the subtraction as well as the entry on the form.

Sources other than salary

If you are earning income from rent in addition to salary, then click on the Property option there. This will be followed by the details of the tenancy income and the expenses incurred on the property. In addition, if the source of income on which a fixed tax is paid, such as a bank account or a tax on profits in the form of shares. Although its entry will not affect the tax slab, it must be disclosed. Even after that, if there is any income, it will be listed in Other Income.

Then click on Tax Chargeable and the tax payable will be written on it.

How to file income tax

If the amount of income tax payable after tax is not paid, go to www.e.fbr.gov.pk to submit it and after entering the ID card number and password, you have to log in, after which a page with your complete information will open. The tax amount will be entered here. In addition to cash, deposits can also be made by check and pay order. After entering all the details, click on Create Payment and then confirm and thus the challan will be ready. Clicking on the Print option will download the invoice. In case of printing of this challan at the counter of National Bank, a computerized payment receipt or CPR will be issued from there. If you enter this CPR number in the FBR return filing, the tax amount will be linked to your account and the government will record that your tax has been collected.

A wealth Statement must also be filled with this tax return. This statement will list both last year’s wealth and this year’s wealth, thus determining the increase or decrease in wealth.

Similarly, other property, jewellery, gifts, loans, tax amnesty etc. will also be registered in the wealth statement. If expenses and income are entered correctly, the amount in the unreconciled amount will be zero. If the amount is not zero, it means that there is a difference in the figures.

After entering all this information, click on verification and after entering the PIN code, submit your form and also get a print of it.

Tax Easy App

This year, the FBR has also launched a mobile application called Tax Easy for the salaried class to file income tax returns. This app has the option to enter all the details of the FBR iris.

After logging in to the app go to the icon at the top left of the app which when clicked click on Sign In in the dialogue box and enter your information. User Name will appear when logged in.

The method of mobile application is also similar to the method of the iris but also simpler and easier.

As soon as you go to the Salary or Salary option, the app will ask you to enter the total annual salary and the part of the salary that is not taxable. After registering the amount, you will return to the Options page, then you will have to repeat the process of entering the details of income from the tenancy, business and other sources gradually.

After entering the data you have the option to correct or delete the entry. Enter all sources of income and click Continue, after which the tax deduction information will be entered.

If you have a car, the app will take you to the Private Vehicle Token Tax page where you will return to the Tax Deduction Page after clicking Save after giving the vehicle details.

The good news is that your tax return has been filed.

Since the wealth statement has been made a part of the tax return this year, you will now come to the Wealth Statement page. Where you must enter details of your assets and expenses. Last year’s assets and current year’s assets must be entered. Here the app will give you the option to go back and forth. After entering all the details, click Continue.

The FBR has issued a complete English language form for filing income tax returns. We believe that for the convenience of the public, there should also be an Urdu language option so that the maximum number of Pakistanis can be assisted without the help of a tax consultant and be able to file their own tax returns.