Guide on how to file Pakistan income tax returns?
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 particularly concerned and everyone seems to be wondering how to file their income tax return.
An income tax return is actually a tax form that provides details of the income earned during a fiscal year.
Some promises of relief were made to income tax filers in Pakistan, resulting in an increase in the number of filers.
Since the introduction of the computerization of the tax filing system in Pakistan, the process of filing the returns has become much easier and it is even easier for the salaried class to file tax returns.
If you have knowledge of using the Internet, you can submit a tax return without expert assistance.
Through this article, we try to make the salaried class aware of the income declaration procedure.
How to file an income tax return
Go to the site 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 this is the first time you are completing a declaration and you have not yet registered your NTN, you must click on Unregistered person registration. This form must provide a computerized identity card number, full name, mobile phone number as well as the name of the mobile network company.
Get a verification code
After entering this information, you will receive separate verification codes on your cell phone and email. The FBR will issue you a password when you enter these PIN codes on the website.
A person who wishes to file a tax return will log into the system after entering their ID card number and password issued by the RBF.
Those who have completed a manual registration should click on E-Enrollment For Register Person. After providing personal information on the portal, a form will open in which the residency details will need to be entered and thus the electronic registration process will be completed.
After saving, the draft will be displayed on the left side of the computer screen, which when clicked will open the Save Request dialog box. Your contact details will be requested here, including home address, property or rental area. After entering these details there will be a check mark, after which click Submit and thus the electronic registration process will be completed.
Choose the option you want
Then at the top left of the screen you will see Written Declaration. When you click on it, a dialog box will open in front of you regarding income tax. You will see various options written on it. To choose the option.
By clicking on the selected option, a new dialog box will open on the screen and enter the year for which you are submitting a declaration. After which, after clicking on the Data button on the screen, we will click on Salary and pay the code 1009, the allowances 1049, the expenses paid by the company (medical education, etc.) 1059, the code if the government employee has a car. 1089 and if other benefits are received, including severance pay, they will be recorded in code 1099. In addition, if a non-taxable amount has been received, it will also be recorded. This amount usually takes the form of a diploma or bonus etc. After entering all these details, the total amount, tax exempt amount and taxable income will be calculated in pay code 1000.
Use a calculator
Double clicking on the calculator to the right as well as entering the amount each time will display the taxable income after subtraction as well as the entry on the form.
Sources other than salary
If you earn rent income in addition to salary, click on the Property option there. Then come the details of rental income and 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 income tax in the form of shares. Although its entry does not affect the tax slab, it must be disclosed. Even after that, if there is any income, it will be listed under other income.
Then click on Tax Charge Able and the tax payable will be listed on it.
How to declare 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 the word password, you must log in, after which a page with your information will open. The tax amount will be entered here. In addition to cash, deposits can also be made by check and money order. After entering all the details, click on Create payment, then confirm and the challan will be ready. By clicking on the Print option, you will download the invoice. If this challan is printed at the National Bank counter, a computerized payment receipt or CPR will be issued from there. If you enter this CPR number in the FBR return, the tax amount will be linked to your account and the government will record that your tax has been collected.
A declaration of assets must also be completed with this tax declaration. This statement will list both last year’s wealth and this year’s wealth, thereby determining the increase or decrease in wealth.
Likewise, other goods, jewelry, gifts, loans, tax amnesty etc. will also be entered in the declaration of assets. If the expenses and income are entered correctly, the amount of the Unreconciled Amount will be zero. If the amount is not zero, it means there is a difference in the numbers.
After entering all this information click on verification and after entering the pin code submit your form and also get a printout.
Easy tax application
This year, the FBR also launched a mobile app called Tax Easy for the salaried tax filing class. This app has the ability to enter all the details of the FBR iris.
After signing in to the app, navigate to the icon at the top left of the app which, when clicked, click Sign In in the dialog box and enter your information. The username will appear once logged in.
The mobile app method is also similar to the iris method but also simpler and easier.
As soon as you access the Salary or Salary option, the application will ask you to enter the total annual salary and the part of the salary that is not taxable. After you save the amount, you will return to the Options page and then gradually repeat the process of entering income details from rental, business, and other sources.
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 declaration of assets has been integrated into the declaration of income this year, you now access the Declaration of assets page. Where you need to enter the details of your assets and expenses. Last year’s assets and current year assets should be entered. Here the app will give you the option to come and go. After entering all the details, click Continue.
The RBF has published a full English form for filing income tax returns. We believe that for the convenience of the public, there should also be an option in Urdu language so that as many Pakistanis as possible can be attended without the help of a tax advisor. Be able to file their own income tax returns.