FBR Income Tax Return Filing in Pakistan — IRIS Portal, NTN Registration, and Tax Slabs 2024–25
Rashid Minhas explains the complete FBR income tax return filing process in Pakistan — from NTN registration on the IRIS portal (iris.fbr.gov.pk) to form submission for salaried persons and business owners, Finance Act 2024–25 tax slabs, ATL inclusion, withholding tax implications, and how to avoid the most common filing errors.
FBR Tax Return Filing — Key Facts
| Item | Detail |
|---|---|
| Filing portal | iris.fbr.gov.pk |
| Filing deadline (individuals) | 30 September each year (for tax year ending 30 June) |
| Filing deadline (companies) | 31 December (for tax year ending 30 June) |
| Tax year | 1 July to 30 June (Special Tax Year applies to some sectors) |
| NTN requirement | Mandatory for all filers — register free via IRIS |
| Minimum income threshold | No minimum — filing is required for all persons with NTN; salaried persons with income above PKR 600,000/year are liable |
| ATL (Active Taxpayer List) | Published every Monday; filers on ATL pay lower withholding tax rates on banking, property, vehicle purchases |
Why Filing a Tax Return Matters in Pakistan
Beyond legal compliance, being on FBR’s Active Taxpayer List (ATL) provides direct financial benefits. Non-filers pay higher withholding tax rates on nearly every significant financial transaction:
| Transaction | Filer Rate | Non-Filer Rate |
|---|---|---|
| Bank cash withdrawal (above PKR 50,000/day) | 0.6% | 1.2% |
| Property purchase (above PKR 4 million) | 3% | 12% |
| Vehicle registration (above 1300cc) | 2% | 4% |
| Dividend income | 15% | 30% |
| Prize winnings | 15% | 30% |
For any Pakistani who makes a significant property or vehicle purchase, the filer/non-filer difference alone can save PKR 300,000–500,000 in withholding tax on a single transaction.
Step 1: NTN Registration on IRIS
The National Tax Number (NTN) is your tax identity. For salaried individuals, the NTN is the same as your 13-digit CNIC number. You do not need a separate NTN if you are salaried — your CNIC is your NTN.
For business owners, freelancers, and companies, a formal NTN registration is required:
- Go to iris.fbr.gov.pk.
- Click “Registration for Unregistered Person”.
- Enter your CNIC number, mobile number, and email address.
- You will receive an OTP on your registered mobile. Enter it to proceed.
- Fill in your business name, business activity, bank account number, and address.
- Upload a scanned copy of your CNIC and utility bill.
- Submit. FBR assigns your NTN within 3–5 working days.
- You will receive login credentials (username and password) to access the IRIS return filing dashboard.
Step 2: Filing Income Tax Return — Salaried Person
The salaried person return (Form IT-1) is the simplest to complete. You will need your employer’s salary certificate (Form 16 or the equivalent letter from HR) and bank statements for the tax year.
- Log in to iris.fbr.gov.pk with your CNIC and IRIS password.
- Click “Return of Income” → “Normal Return” → select the tax year (e.g., 2024 for July 2023–June 2024).
- The return form opens. Complete the “Personal Information” tab — verify address and employer details.
- Go to “Income” tab → “Salary” section. Enter your total salary, allowances, and any bonuses as shown on your salary certificate.
- Under “Tax Already Paid”, enter the tax deducted at source by your employer (shown on your salary certificate or bank statements). This prevents double taxation.
- If you have any other income (rental income, bank profit, dividend), declare it in the respective sections.
- Go to “Assets and Liabilities” tab. Declare all assets: property value, vehicles, bank balances, cash, gold, investments. This section is critical — FBR cross-checks asset declarations year on year.
- Complete “Expenses” tab — household expenses, foreign remittances sent, loan repayments.
- Click “Calculate” to see net tax payable or refundable.
- If tax is payable, generate a PSID (Payment Slip ID) and pay at any bank branch or via online banking using the PSID number.
- After payment, go back to IRIS, enter the PSID confirmation, and click “File Return”.
- Download and save your filed return acknowledgement (ITR-V) for your records.
Finance Act 2024–25 Income Tax Slabs — Salaried Persons
| Annual Taxable Income (PKR) | Tax Rate |
|---|---|
| Up to 600,000 | Nil |
| 600,001 – 1,200,000 | 5% of amount exceeding PKR 600,000 |
| 1,200,001 – 2,200,000 | PKR 30,000 + 15% of amount exceeding PKR 1,200,000 |
| 2,200,001 – 3,200,000 | PKR 180,000 + 25% of amount exceeding PKR 2,200,000 |
| 3,200,001 – 4,100,000 | PKR 430,000 + 30% of amount exceeding PKR 3,200,000 |
| Above 4,100,000 | PKR 700,000 + 35% of amount exceeding PKR 4,100,000 |
Finance Act 2024–25 Income Tax Slabs — Business Income (Non-Corporate)
| Annual Taxable Income (PKR) | Tax Rate |
|---|---|
| Up to 600,000 | Nil |
| 600,001 – 1,200,000 | 15% |
| 1,200,001 – 1,600,000 | 20% |
| 1,600,001 – 3,200,000 | 30% |
| Above 3,200,000 | 35% |
Filing for Freelancers and Digital Workers
Pakistani freelancers earning from international clients (via Upwork, Fiverr, Toptal, or direct contracts) are required to file income tax returns in Pakistan. Freelance income is treated as “Business Income” and falls under the non-corporate slab table above.
Key points for freelancers:
- Declare foreign remittances received into Pakistani bank accounts — FBR receives bank-wise remittance data
- Export of IT services is currently exempt from sales tax under SRO 1487 — you do not need to charge or pay sales tax on foreign client invoices
- You can claim business expenses (equipment, software subscriptions, internet) to reduce taxable income — keep invoices and bank statements as proof
- If your foreign income is below PKR 600,000/year, you still benefit from being a filer on the ATL
- Register under the “IT Services” business activity category for the most favourable treatment
Active Taxpayer List (ATL) — How It Works
FBR publishes the ATL every Monday. To appear on the ATL for the current year, you must file your return by 30 September (for individuals) of the previous tax year. If you miss the deadline, you can file a late return by paying a surcharge and still get onto the ATL — late ATL inclusion fee is PKR 1,000 for salaried persons.
To verify your ATL status: go to fbr.gov.pk → “Taxpayer Facilitation” → “Active Taxpayer List (Income Tax)” → enter your CNIC. This same check is used by banks, property registrars, and vehicle dealers when applying withholding tax rates.
FBR Mobile App
FBR’s official mobile app (available on Android and iOS — search “Tax Asaan FBR”) allows salaried individuals to file returns directly from their phone. The app pre-fills salary data from employer-submitted data where available, making filing faster. It also allows ATL verification and PSID payment tracking.
Common Filing Errors to Avoid
| Error | Consequence | How to Avoid |
|---|---|---|
| Not declaring all assets (property, vehicles, cash) | FBR audit, penalty, or asset reconciliation notice | Declare every asset regardless of value — omission triggers notices |
| Understating expenses in the expenses tab | Creates unexplained wealth if asset declarations grow faster than income | Accurately fill household expenditure — FBR uses this to check income vs lifestyle |
| Not entering tax already deducted at source | Pay double — once by employer, once via PSID | Enter employer-deducted tax in “Tax Already Paid” section before calculating |
| Filing under wrong return type | Return may not count toward ATL inclusion | Salaried persons use “Normal Return”; business owners use “Business Return” |
| Missing the September 30 deadline | PKR 1,000 late ATL inclusion surcharge; possible default surcharge on tax liability | Set a calendar reminder for early September to complete filing |
Frequently Asked Questions
Is it mandatory to file a tax return in Pakistan?
Yes, for all persons with an NTN and for salaried persons earning above PKR 600,000 per year. Even if you have no tax liability (because your income falls below the taxable threshold), filing a return places you on the ATL, which reduces withholding tax rates on banking and property transactions throughout the year.
What is the deadline for filing income tax return in Pakistan in 2025?
30 September 2025 for the tax year 2024–25 (July 2024 to June 2025) for salaried persons and non-corporate businesses. Companies have a different deadline of 31 December. FBR sometimes grants extensions — check fbr.gov.pk for official announcements closer to the date.
How do I register for NTN in Pakistan?
Go to iris.fbr.gov.pk and click “Registration for Unregistered Person”. For salaried individuals, your CNIC number is your NTN — you can log in directly with your CNIC if your employer has already registered you. For business owners and freelancers, complete the online registration form with your CNIC, bank account, business details, and supporting documents.
How do I check if I am on the FBR Active Taxpayer List?
Go to fbr.gov.pk → “Taxpayer Facilitation” → “Active Taxpayer List (Income Tax)” and enter your 13-digit CNIC. The result shows whether you are an active filer and the tax year of your last filed return. You can also send your CNIC to the FBR helpline number 051-111-772-772 to verify ATL status.
What happens if I do not file a tax return in Pakistan?
You are excluded from the ATL and pay higher withholding tax rates on all major transactions. FBR can also issue a notice under Section 114 requiring you to file. Continued non-filing can result in a default surcharge and, in serious cases, prosecution. The practical financial cost of non-filing for most Pakistanis is the doubled withholding tax on banking and property transactions.
Related Guides
- CNIC renewal in Pakistan — NADRA process and required documents
- Electricity bill check and LESCO online payment guide
- Online electricity bill payment in Pakistan — all DISCOs and payment methods
FBR Active Taxpayer List — How to Check Your ATL Status
The FBR Active Taxpayer List (ATL) is a crucial document that determines the withholding tax rates applied to your transactions. Filers on the ATL pay lower withholding tax on property purchases, bank transactions, vehicle purchases, and foreign currency transactions compared to non-filers. To check your ATL status:
- Go to fbr.gov.pk → Taxpayer Facilitation → Active Taxpayer List
- Enter your CNIC or NTN number in the search field
- Click Verify — a result will show Active or Non-Active for the current tax year
- Alternatively, send your NTN number via SMS to 9966 — you will receive an SMS with your ATL status
Your ATL status updates once per year after the tax return filing deadline (typically September 30 for salaried individuals; December 31 for businesses). If you filed your tax return before the deadline, your name should appear on the ATL within 30 days of filing. Late filers may appear on the ATL only after paying a surcharge.
Common FBR Income Tax Return Filing Mistakes in Pakistan
- Filing under wrong return type — salaried individuals must select “114(1) – Salaried Person”; business individuals select “114(1) – Business Individual”. Filing under the wrong type creates discrepancies in FBR’s system.
- Not declaring all income sources — rental income, freelance earnings, foreign remittances, and profit from bank savings accounts must all be declared. FBR cross-references declared income with SECP, SBP, and PRA/SRB data.
- Wrong CNIC-to-NTN linkage — if your NTN was registered with an old CNIC (before renewal), the return may fail validation. Update your NTN profile in IRIS with your current CNIC before filing.
- Not attaching employer certificate for salaried employees — your employer’s salary certificate (showing gross salary, deductions, and withholding tax) must match the figures you enter in the return form.
- Missing the September 30 deadline — a late surcharge of PKR 1,000–40,000 applies depending on income; and late filers miss the ATL window, incurring higher withholding tax rates throughout the following year.
What is the penalty for not filing FBR tax return in Pakistan?
The penalty for not filing your FBR income tax return by the deadline is a surcharge of PKR 1,000 for individuals with income up to PKR 1 million, increasing to PKR 40,000 for individuals with income above PKR 10 million. Additionally, non-filers pay higher withholding tax rates on all major transactions throughout the year — property purchases, vehicle registration, banking transactions — making non-filing costly beyond just the formal penalty.