Tax Return · PakistanYour tax return decides whether you are on the Active Taxpayers List. The wealth statement behind it decides whether FBR asks questions.
We prepare and file individual income tax returns, wealth statements and reconciliations on IRIS for salaried professionals, freelancers, landlords and overseas Pakistanis.
Tax
At a glance
- Authorities
- Federal Board of Revenue (FBR)
- Forms & references
- Return of income (section 114)Wealth statement (section 116)Wealth reconciliation statementForeign income and assets statement (section 116A)
- Filed with
- FBR, on IRIS
- Due date
- 30 September, for the tax year ending 30 June
- Attachments
- Wealth statement and reconciliation (residents)
- Late ATL surcharge
- Rs 25,000 for individuals at the time of writing
Overview
What it is, and why it matters.
Individuals file their income tax return for the tax year ending 30 June by 30 September, on FBR’s IRIS portal. Resident individuals attach a wealth statement listing their assets and liabilities, and those of dependants, with a reconciliation showing how their net wealth changed during the year.
Filing on time puts you on the Active Taxpayers List, and non-filers generally pay double the withholding rate on many transactions. Since the Finance Act 2026, getting on the list after a late return costs individuals a Rs 25,000 surcharge at the time of writing, unless you give an undertaking not to acquire property for six months.
The wealth statement matters most over time. Each year’s closing wealth becomes next year’s opening position, and an increase in assets that your declared income does not explain can be taxed as unexplained income. We keep the statements consistent from year to year.
Resident individuals with foreign income of US$10,000 or more, or foreign assets worth US$100,000 or more, also file a foreign income and assets statement. Overseas Pakistanis have their own questions about residence, rental income and property purchases, which we cover as part of the return.
Who needs it
Who typically needs it.
- 01
Salaried professionals
Your employer deducts tax, but filing is what puts you on the ATL and lets you claim credits for other tax paid.
- 02
Freelancers and IT exporters
The reduced tax on export proceeds is only final if you file, and your wealth statement must reflect foreign receipts properly.
- 03
Landlords
Rental income is taxed on its own basis, and tenants that are companies or other prescribed persons deduct tax you need to reconcile.
- 04
Overseas Pakistanis
Pakistani rent, property sales and bank profit can create a filing obligation, and ATL status affects property transactions.
- 05
Sole proprietors and partners
Sole proprietors file business accounts with their return; AOP partners file wealth statements and personal returns.
- 06
Property and vehicle buyers
Filing before a purchase affects the advance tax you pay and whether you count as an eligible person under section 114C.
When you need it
The moments that usually trigger it.
- You have an NTN, or are about to get one, and have never filed.
- You are planning to buy property or a car and want ATL rates.
- You have started freelancing and receive payments from abroad.
- You have received a notice asking why you have not filed, or asking about your wealth.
- You moved abroad, or returned to Pakistan, during the tax year.
- You missed the deadline and need to get back on the ATL.
Scope
Exactly what we handle.
Our engagement letter lists these specifically, so you know what is included before any work begins.
- 01
Preparing and filing your return on IRIS, covering salary, business, rental, capital gains and other income
- 02
The wealth statement and wealth reconciliation, consistent with earlier years
- 03
Collecting and reconciling tax deducted by employers, banks, tenants and others
- 04
Final tax treatment for IT export proceeds and other final-tax income
- 05
Residence status checks for people living abroad or returning
- 06
Foreign income and assets statements where required
- 07
Late filing, the surcharge or undertaking, and ATL restoration
- 08
Revised returns and wealth statements where earlier filings need correcting
The process
How it runs, step by step.
Timings depend on the authority and on how quickly documents come together. We tell you what’s typical for your case at the start.
Start with a conversationShort intake call
We confirm your income sources, residence status, earlier filings and any upcoming property or vehicle plans.
Documents and data
You send salary, bank, rental and asset records, and we pull the tax credits FBR holds for you from IRIS.
Prepare the return and wealth statement
We compute your tax, build the wealth statement and check the reconciliation against last year.
Review with you
You approve the return and wealth statement, and pay any balance using the challan we generate.
File and confirm ATL status
We file on IRIS, send you the acknowledgement, and check your ATL status once FBR updates the list.
What we’ll need
The information to have ready.
A typical checklist. After the first conversation we send a version specific to your situation, so you don’t gather anything you don’t need.
Income
- Salary certificate or tax deduction certificate from your employer
- Freelance invoices and foreign remittance records
- Tenancy agreements and rent received
- Bank profit and dividend certificates
- Details of any property or shares sold
Assets and liabilities
- Last year’s wealth statement, if filed
- Property details and purchase values
- Vehicles, with registration numbers
- Bank balances at 30 June
- Loans owed or given
Tax paid and personal details
- Certificates for tax deducted on vehicles, utilities, phone bills and bank transactions
- CNIC or NICOP, and IRIS login
- Travel dates, if you live abroad or moved during the year
- Approximate household expenses for the year
Please don’t email passports or bank statements. Once we’ve spoken, you’ll get access to a secure upload.
Common mistakes
Where this usually goes wrong.
The problems we are most often asked to fix, and what they tend to cost.
- Mistake 01
A wealth statement that does not reconcile
When net wealth rises by more than your declared income explains, FBR can tax the difference as unexplained income.
- Mistake 02
Declaring property at inconsistent values
Values should follow the cost basis used in earlier years. Changing them without explanation invites questions.
- Mistake 03
Missing tax credits
Tax deducted on vehicles, utilities, phones and bank transactions is often adjustable, but only if you claim it.
- Mistake 04
Filing late and assuming the ATL follows
Late filers are only added to the ATL after the surcharge or undertaking, and a penalty can still apply.
- Mistake 05
Assuming you are non-resident because you live abroad
Residence depends on days in Pakistan and, for citizens, whether you are tax resident elsewhere. Getting it wrong changes what you must declare.
Worth knowing
The limits, stated upfront.
We rely on the information and documents you give us, and the declaration on the return is yours.
Detailed audits, amended assessments and appeals are scoped separately.
Tax in the country where you live is separate from your Pakistani return. If that is the UK or the US, our services there can help.
Questions
Tax Return: frequently asked.
If yours isn’t here, ask us directly. We’ll answer in plain terms.
Ask a questionDo I have to file if my employer already deducts tax?
Usually, yes. Anyone whose taxable income is above the tax-free threshold must file, and filing is also what puts you on the ATL and lets you claim credits for tax already paid on other transactions.
What is a wealth statement?
It is a statement of your assets and liabilities at 30 June, including those of dependants, filed with your return. Resident individuals must file one, together with a reconciliation explaining the change in net wealth over the year.
Do I need to file if my income is below the taxable limit?
You may. Anyone who holds an NTN, owns a vehicle above 1000cc, owns property above certain sizes in urban areas, or meets other conditions in section 114 must file even with little or no tax payable.
I missed 30 September. What now?
File as soon as possible. A penalty may apply under section 182, reduced if you file within one, two or three months of the deadline, and to rejoin the ATL you pay the late-filing surcharge or give the six-month property undertaking.
I live abroad. Should I file in Pakistan?
If you have Pakistani income above the taxable threshold, such as rent, you generally must. Even if not, filing can help when buying or selling property and keeps your record clean if you return. We check your residence status first.
Are freelancers taxed at 0.25%?
At the time of writing, IT and IT-enabled export proceeds received through a Pakistani bank are taxed at 0.25% for PSEB-registered exporters and 1% otherwise. That tax only counts as final if you file your return and meet the other conditions.
Can you file returns for past years?
Yes, earlier years can generally still be filed, although penalties may apply. We look at which years matter for your situation, including any notices FBR has already issued.
Related
Often needed alongside this.
The equivalent in our other countries
Speak with a consultant
Talk to us about tax Return.
Pick the closest match and we’ll take it from there. You’ll get a written scope and fee before any work begins.
Or use our three-step guide, or email hello@fiscorra.com