Guide to File Tax Returns in Pakistan

Guide For File Tax Return and Register NTN

Online Tax Filing has popularly become a much sought-after process in Pakistan. Similarly, the FBR Federal Bureau of Revenue’s has introduced the online software IRIS. But a much simpler, highly user-friendly, and the easy-to-navigate portal has been introduced by ATS Consultantx an E Filing Tax Portal with the name of File My Return.

ATS is Pakistan’s online tax preparation and filing portal. Register NTN by Sign up get a free NTN and prepare your income tax return within minutes simply by answering easy questions. Any user can create an account by providing basic information like CNIC number, name, email, and cell phone number.

First of all the system requires you to choose between NTN registration and Filing of Tax Return. Then select the Tax Year for which tax return needs to be filed.

Next, fill out some additional personal information like date of birth, occupation, and residential Address. The personal information: particularly date of birth, and occupation, are not only required by FBR, but are also used to determine the tax rate applicable to the filer. Now select the sources of income for the year. There are four broad categories:

  • Salary from Employment
  • Property Income i.e. Rental income
  • Capital Gain on sale of shares, mutual funds or property, and
  • Other Sources, such as bonus or dividend on shares, profit on bank deposits, agricultural income, remittances from abroad or gift.

In salary section, enter total annual taxable salary for the tax year. This figure is mentioned in the salary certificate provided by the employer. In case, there are doubts about the exact amount, either ask the employer or enter the amount of salary actually received inclusive of the amount of tax deducted thereon.

If travelling allowance was received as part of employment, then click yes, and enter the amount, otherwise carry on. In tax deducted field, enter the amount of tax deducted by the employer. Once the figures are entered, click the calculator icon on the left to update the figures. Unless any tax rebate, or deduction are being claimed, the amount of tax charged and tax deducted should reconcile.

Next is income from other sources. Select as many sources of income as applicable. Select the bank profit icon and enter the necessary details. You can add multiple bank accounts, if needed. Once done click continue.

Next comes Tax rebates and allowances section. Investment in mutual funds or insurance products, and donations to registered charitable organisations can save you taxes. You can either select Yes or No as applicable. For example, an investment of Rs. 200,000 in mutual funds led to a tax credit of Rs. 9,917. Click Continue to move on to the next section i.e. Advance Taxes deducted or paid for example on utility bills, banking transactions, sale or purchase of vehicle or property etc.

Next section is: wealth statement. In this section, you have to reconcile your wealth for the tax year beginning on July 1, and ending at June 30, of the following year. In order to do that, you just have to provide the details of your expenses and particulars of assets held at the end of tax year.

In first section of wealth statement you have to enter your opening wealth. The amount you enter must be the same as your closing wealth in your last year’s tax return. Next question is whether you held any assets at the end of the tax year. There are eight icons in total depicting different categories of assets. You can hover the mouse cursor over each of the icon to see what kind of assets are covered in each category.

Next, you will be shown a summary of all the information you have entered. Once you click continue, you will be prompted with standard disclaimers. Read them carefully and click Agree to continue.

Then you will be asked about your registration status with FBR. If you are registered with FBR, you would have a National Tax Number commonly known as NTN and credentials for filing a return with FBR’s tax portal i.e. IRIS. If you select yes, you would be prompted to enter your FBR’s login credentials. In case you select NO, you will be prompted to upload your CNIC to help you register with FBR through Befiler.com. After the payment is made, the system automatically prepares the return to be reviewed by our professional tax consultants and then filed in the FBR system.

Peoples in develop Societies pay taxes. You should also read the Benefits for Filler section articles. Which describes well about the benefits being a responsible resident of Pakistan.