How to File Income Tax Return in Pakistan 2025 — Complete Step-by-Step Guide

Filing your income tax return in Pakistan is not as complicated as most people think — but the FBR’s IRIS portal is notoriously confusing, and mistakes in your return can lead to notices, penalties, and years of headaches. This guide walks you through every step clearly, written by a practising tax consultant who has filed over 5,000 returns on FBR IRIS since 2015.

If you’d rather skip the process entirely, WhatsApp FirsTax and we’ll handle it, done in 24 hours.

1. Who Must File an Income Tax Return in Pakistan?

Under the Income Tax Ordinance 2001, the following persons are legally required to file an annual income tax return in Pakistan:

• Any individual whose taxable income exceeds PKR 600,000 per year
• All registered companies and businesses (regardless of income)
• Owners of immovable property with annual rental income above PKR 600,000
• Any NTN holder — whether individual or business
• Anyone who wants to appear on the FBR Active Taxpayer List (ATL)
• Anyone who has had tax withheld at source and wants to claim a refund
• Directors of companies and members of Association of Persons (AOP)
• Anyone registered for sales tax (STRN holder)

Even if your income falls below the taxable threshold, filing a return is strongly advisable because it puts you on the ATL — which significantly reduces withholding tax rates on bank transactions, property purchases, and vehicle registrations.

2. Deadlines for Tax Return Filing 2025

Pakistan’s tax year runs from 1 July to 30 June. For the tax year 2025 (1 July 2024 – 30 June 2025), the standard filing deadlines are:

Important: FBR sometimes extends deadlines. Always confirm with FirsTax or check fbr.gov.pk before the filing date. Filing after the deadline attracts a penalty of PKR 1,000 per day (minimum PKR 10,000 for salaried) or 0.1% of tax payable per month — whichever is higher.

3. Documents You Need

Gather these documents before starting your return. Missing documents are the #1 reason filings get delayed or errors are made.

4. Step 1 — Get Your NTN

Before you can file a tax return in Pakistan, you need a National Tax Number (NTN). If you don’t have one yet:

1. Go to iris.fbr.gov.pk
2. Click Registration for Unregistered Person
3. Enter your CNIC number
4. Enter your mobile number (must be linked to your CNIC on NADRA)
5. Receive OTP and verify
6. Complete the registration form with your personal and income details
7. Submit — your NTN is issued immediately

5. Step 2 — Login to FBR IRIS

Once you have your NTN:

1. Go to iris.fbr.gov.pk
2. Enter your CNIC number as your username (13 digits, no dashes)
3. Enter your password (set during NTN registration; if forgotten, use Forgot Password)
4. Complete OTP verification
5. You are now on your FBR IRIS dashboard

6. Step 3 — File Your Return on IRIS

From your IRIS dashboard:

1. Click Declaration in the top menu
2. Select 114(I) — Annual Income Tax Return (for salaried individuals) or the appropriate form for your taxpayer type
3. Select the correct Tax Year (2025 for the period July 2024 – June 2025)
4. Click Create to open your return form

Inside the return form, you will need to fill:

• Salary income — enter the gross salary as shown on your Form 149/employer certificate
• Tax deducted by employer — from your salary certificate (Section 149 withholding)
• Other income — bank profit, rental income, business income (if any)
• Deductible allowances — zakat, charitable donations, life insurance premiums, education expenses (where applicable)

7. Step 4 — Complete the Wealth Statement

The wealth statement is a declaration of all your assets and liabilities. It is mandatory for all filers and must be balanced — meaning your total assets must be explained by your income, inheritance, gifts, or loans.

Assets to declare include:

• Property (residential, commercial, plots) — purchase value
• Vehicles — make, model, year, registration number
• Bank account balances (as of 30 June)
• Cash in hand
• Investments (stocks, mutual funds, savings certificates)
• Business capital
• Foreign assets (property, accounts, investments abroad)

8. Step 5 — Submit and Get Acknowledgement

1. Review your return carefully — income, deductions, wealth statement
2. Click Verify to run IRIS’s built-in validation check
3. Resolve any errors flagged by the system
4. Click Submit
5. Enter the OTP sent to your registered mobile number
6. Your return is now filed — download the Acknowledgement Receipt (IRIS-I-15)

Keep your acknowledgement receipt safe — it is proof of filing and is required for ATL verification, bank queries, and property transactions.

9. Step 6 — Verify Your ATL Status

After filing, confirm your Active Taxpayer List (ATL) status:

1. Go to atl.fbr.gov.pk
2. Enter your CNIC number
3. Your ATL status will show as Active once your return is processed

ATL is updated weekly by FBR. It may take 3–7 days after filing for your name to appear. You can also check via SMS: type ATL [space] CNIC number and send to 9966.

10. Common Mistakes to Avoid When Filing Your Tax Return

After 10 years and 5,000+ returns, here are the mistakes we see most often:

1. Wrong salary figures — entering net salary instead of gross salary. Always use the figure from your Form 149, not your bank deposit.
2. Missing bank profit income — most people forget to declare interest/profit received from savings accounts and National Savings certificates.
3. Incomplete wealth statement — omitting plots, vehicles in family members’ names, or cash on hand. FBR notices frequently relate to this.
4. Wrong taxpayer type — salaried employees selecting business taxpayer forms, or vice versa.
5. Not filing on time — the most avoidable mistake. Late filing penalties start immediately after the deadline.
6. Forgetting previous year data — wealth reconciliation compares this year’s assets with last year. If you filed before, you must import or match previous year wealth statement data.

11. What Happens If You Don’t File Your Tax Return?

Not filing has serious consequences that most people underestimate:

• Financial penalty — PKR 40,000 or 0.1% of tax payable (whichever is higher) for salaried individuals. Higher for businesses.
• Non-filer surcharge — higher withholding tax on bank transactions, property, and vehicles. Adds up to lakhs over time.
• FBR Section 114 notice — FBR will eventually send you a notice to file. Ignoring it leads to ex-parte assessment.
• Bank account issues — banks are increasingly asking for ATL status for high-value transactions and account upgrades.
• Property transaction problems — property registrars check ATL status. Non-filer rates apply automatically.

12. Should You File Yourself or Hire a Tax Consultant?

Filing yourself is possible — but is it worth it? Here’s an honest comparison:

For most salaried professionals, the time saved and the risk avoided more than justifies the fee. For business owners with multiple income sources, property, or investments — professional filing is not optional, it’s essential.