Introduction 

Haven’t you filled out your income tax? No worries you got much time to complete this process and become a responsible person in your country. We understand that many people are unaware of tax filings or legal-related issues, but these are important for any business individual and the nation’s prosperity.

Pakistan is an Islamic Republic with a majority-Muslim populace that, whenever they have the financial means, gives to charity with all of their religious enthusiasm and sincerity as well as the required Zakat and other charitable deeds throughout the year. Unfortunately, these same individuals choose not to submit their tax returns because they are unaware of their civic duty and the significance of paying income tax, among other societal issues and lack of awareness.

More About Income Tax Returns

All sources of income are subject to income tax, which is levied by the government of the nation in which you now reside. You must pay taxes on your income under the usual tax rates regardless of whether you are a salaried worker or a business owner. The public monies that the government uses to maintain the nation’s infrastructure and public facilities are then increased by this tax. These monies are also used by the government to develop better public policies and to provide grants and subsidies.

So let’s dive into this crucial obligation and go through everything linked to filing income taxes.

 

Before we go into the specifics of the procedure, it is crucial to note that everyone in Pakistan who earns PKR 600,000 or more annually is required to file their tax returns. If you haven’t yet paid your taxes but think your annual income surpasses this amount, you’re in luck. You may follow along with every stage of the process by using our thorough instructions on how to file taxes in Pakistan. Additionally, there are several benefits to filing income taxes in Pakistan, such as tax deductions, duty exemptions, and more.

Without further ado, let’s get started with our detailed instructions for filing income tax returns in Pakistan.

Continue reading this blog to learn everything there is to know about income tax filing in 2023!

Income Tax Returns Online Filing Process 

Online income tax filing has gotten a lot simpler. By going to the Federal Board of Revenue website, everyone can now quickly file their taxes online. These are the steps for filing tax returns in Pakistan.

Login Procedure

  • Register with Iris before filing tax returns. Iris is an online filing system for income tax filing. Put your login and password in.
  • Click “Forget password” if you can’t recall your password.
  • Click the “Declaration” menu at the top of the portal after you’ve successfully logged in.
  • ‘114(1) Return of Income Submitted Voluntarily for 1 Year)’ is the tab to select under Forms.
  • Place your cursor on the Period tab and type the Tax year there.

Employment Section

  • When a new page appears, click on the Employment section.
  • Go to the Salaries tab.
  • Add your yearly income in the Total Amount column.
  • If your salary includes the exempted amount, be sure to include it under the heading “Amount exempt from tax.”
  • Once finished, select the Calculate option.
  • Fill out the blanks with the total tax, the amount subject to final tax, and the amount exempt from tax, then click the Calculate button.

Tax Adjustment  

 

  • Choose the Deductible Allowances tab from the Tax Chargeable/Payments page to enter any deductions made for Zakat or charitable contributions.
  • Fill out the areas for Tax Payable, Tax Relief, Adjusted Tax, and Tax Credits.
  • The details of the taxation that were previously levied against or invoiced to you during your tax year must be entered on the Adjustable Tax screen.
  • Also, you can change the tax that your bank deducts from specific parts, such as when you take money from the bank in 64100101. All further banking transactions, including such savings or bonds, should be made using the code 64151501.
  • Also, you can compare the tax that your bank deducts from the sale, lease, transfer, and registration of motor vehicles to the relevant codes.
  • The car’s brand, model, and engine size will be requested in a dialogue box that will also ask for information about the vehicle, such as the E&TD Registration No. Click the Calculate Tab button when you are finished.

Tax Payments 

  • By selecting the Tax Chargeable/Payments page, you may see all the details regarding your income and taxable amounts.
  • Check out the tabs for accepted and demanded income taxes.
  • You are required to pay any sum shown under the Demanded Income Tax tab and include any necessary CPRs.

Personal Assets 

  • Choose the Personal Assets option to submit information about your assets.
  • Add up the total of the current year’s net assets as well as the prior year’s net assets.
  • In the field for inflows and outflows, enter the amount of annual income.
  • Press the Calculate button once you have completed the information.
  • When submitting tax returns, the “Unreconciled Amount” must be zero.

Demanded Tax Payment

  • You must submit the information about your returns in the subsequent steps after paying the demanded tax using an Alternative Delivery Channel (ADC) or with cash by going to any approved National Bank of Pakistan branch.
  • Inside this top right corner, click the + sign after selecting the Payments tab.
  • You’ll see a dialog window that asks for your payment details.
  • Type in the CPR number, amount code, or amount paid, then select the search option.
  • Choose Yes to store all of your payment information when it comes to a list.

Verify And Submit 

  • You need to verify your identification at this point by entering and calculating the figures for all the required fields.
  • Your name and registration number will already be known to the system.
  • When prompted, enter the verification pin that was provided to you upon registration, then select the Verify Pin tab.
  • Choose the Submit tab to submit your income tax returns after getting the necessary data.

 

Conclusion

This was a thorough article on how to submit Pakistani income tax forms. We hope this information was useful to you. Send us an email at info@mavens.pk if you have any queries or suggestions.