Blog

Complete guide to 100% affordable income tax return filing in Pakistan

How to file income tax return online in Pakistan?

 

FBR tax return

Tax period has started for individuals, association of persons and companies.

Deadline to file taxes is before 30 September 2022.

The period considered for tax is 1 July 2021 to 30 June 2022.

Your income is broadly divided into following five heads according to Income Tax Ordinance of Pakistan:

  • Salary
  • Income from property
  • Income from business
  • Capital gains
  • Income from Other Sources

What information is required to file taxes? 

  • Salary certificate from the employer for the year ended 30th June 2022 (if any)
  • Details of property income along with copy of rent agreement and tax deduction certificates (if any)
  • Details of business income earned during the year along-with supporting documents
  • Details of income earned under the head capital gain (i.e., gain on disposal of securities, immoveable property)
  • Details of income earned under the head “Other sources” like pension income, agricultural income, dividend, profit on debt, Prizes and winnings, commission, gift received etc.
  • Proceeds Realization Certificates in case of Foreign Remittance (If any)
  • Documentary evidence in respect of taxes paid or advance tax collected or deducted (i.e., Salary, rent, dividend, provincial income tax in case of agricultural property, profit on debt, withholding on cash withdrawal, advance tax on sale or purchase or transfer of immoveable property, advance tax on purchase of air ticket, telephone, advance tax on private motor vehicles etc.)
  • Details of local taxes and other expenses paid in respect of rental income
  • Copy of bank statements of all bank accounts for the period July 01, 2021 to June 30, 2022
  • Any increase/decrease (i.e., purchase/sale) during the year in assets and liabilities along with documentary evidence.
  • Estimated household expenses including foreign trips (official/private), children education expenses, utilities expenses etc.

You can reduce your tax by availing the available tax credits in the Income Tax Ordinance of Pakistan

  • Proof of donation (if any) paid for claim of tax credit u/s 61 of the Ordinance
  • Proof of any investment in new shares/mutual funds units/life insurance premium paid for claim of tax credit u/s 62 of the Ordinance
  • Proof of any health insurance premium paid for claim of tax credit u/s 62A of the Ordinance
  • Proof of any contribution paid to an Approved Pension Fund for claim of tax credit u/s 63 of the Ordinance
  • Proof of Zakat (If any) paid or deducted by the banks for claim as a deduction
  • Proof of any loan obtained along-with schedule by the individual for the construction of a new house or the acquisition of house for claim as deductible allowance u/s 60C of the Ordinance.

What happens if I do not file my income tax return ?

FBR can issue you tax notices demanding payment of tax. This can result in lengthy appearances in front of tax commissioners, payments of penalties, fines and tax litigations. It is always better to save time and headache by filing your tax returns on time with FBR.

What is the benefit of filing income tax return?

  • Lower rates of tax deduction at source by banks on both profits and cash withdrawals
  • Reduction on withholding tax (tax already deducted from your income and gains) when registering and transferring motor vehicles
  • Lower rate of tax on buying and selling of property
  • Lower withholding tax rate on capital gains on sale of securities
  • Charges for tax on dividend will be lower
  • Lower rate of withholding tax on prize bond winnings
  • Allows you to claim back overpaid tax that has been withheld

How to file income tax return? 

You can go to FBR website and open IRIS account to file your taxes directly on the FBR website. Iris is online portal where Income Tax Return is filed.

Can someone help me with tax filing ?

Call on 0335 956 77 99 to avail help from professional tax experts at a very reasonable price.