Introduction
Filing an income tax return in Pakistan is not just a legal duty — it’s proof of your financial credibility. Regular filing with the FBR keeps you compliant and brings benefits like loan approvals, property registration, and easier visa processing. With the July 2025 tax updates, it’s vital to know the process, deadlines, and changes. This guide explains everything for both salaried and business individuals.
At DSI Law Associates, we regularly guide clients on income tax return filing in Pakistan, ensuring compliance with FBR requirements and helping both salaried and business individuals benefit from timely filing.
Why Filing Your Income Tax Return Matters in Pakistan
A clean financial record goes far beyond avoiding fines. The FBR requires every eligible individual and business to file their income tax return each year. Missing the income tax return last date means paying penalties and losing filer status, which results in higher tax deductions at banks and on major transactions.
For example, if you’re a salaried professional earning above the FBR threshold, failing to file can cost you extra tax when purchasing property, vehicles, or even airline tickets. Similarly, business owners risk audits, additional scrutiny, and reputational damage.
Timely income tax return filing is not just compliance — it’s smart financial management. It proves your legitimacy, strengthens your borrowing power, and helps build a transparent financial identity.
Key Dates and July 2025 Updates You Should Know
The FBR announces the income tax return last date every year, usually in September for salaried individuals and business taxpayers. However, the July 2025 budget brought fresh updates in tax slabs, relief measures, and filing processes.
- Tax slabs for salaried individuals: Adjusted slightly to offer relief for middle-income earners.
- Business individuals: New reporting requirements for those using digital platforms.
- Income tax return filing window: FBR is moving toward stricter compliance, meaning fewer chances of an income tax return date extension.
That said, FBR sometimes still allows extensions if a large number of taxpayers are unable to file on time. It’s always better to file early rather than waiting for an extension notice.
How to File Income Tax Return Online in Pakistan
Many people fear the process, but the truth is, the FBR has made online filing much simpler. Here’s a step-by-step look at how salaried and business individuals can manage their FBR income tax return.
Step 1: Register on IRIS
Visit the FBR IRIS portal and create your account. Once verified, you’ll have access to your dashboard.
Step 2: Gather Your Documents
- CNIC
- Salary certificate (for salaried persons)
- Bank statements
- Business expense and revenue records (for business individuals)
- Withholding tax certificates
Step 3: Select the Right Form
For employees, the FBR income tax return form for salaried persons is the standard. Business owners use forms that account for revenue and expenses.
Step 4: Enter Income and Deductions
Input your salary, business revenue, or any other sources of income. Deduct eligible expenses, such as education, donations, or insurance premiums.
Step 5: Submit and Verify
After reviewing, submit your return through the portal. You’ll get an acknowledgment receipt as proof of income tax return filing.
Pro tip: Always file before the deadline. Waiting until the last week often causes delays due to heavy website traffic.
How to Check Income Tax Return Status
After filing, it’s important to confirm whether your return has been accepted. To check income tax return status, log in to the IRIS portal, go to “Declarations,” and track the submission.
The status may show as “Submitted,” “In Process,” or “Completed.” If there’s any error, FBR will flag it, and you can revise your return. Keeping track ensures you remain an active filer and benefit from lower tax rates.
Common Mistakes to Avoid When Filing
- Entering incorrect CNIC or bank details.
- Forgetting to declare secondary income streams.
- Not attaching the correct salary certificate or receipts.
- Waiting for an FBR income tax return date extension instead of filing on time.
These small mistakes can lead to rejection of your return or unnecessary penalties. Double-check every entry before hitting “Submit.”
What Happens If You Don’t File?
A levy record with FBR can have consequences, and it might create long-term problems. Missing the income tax return deadline can lead to:
- Heavy fines and penalties.
- Loss of filer benefits, meaning higher withholding taxes on banking, property, and travel transactions.
- Audits and investigations by the FBR.
For instance, if you buy a car as a non-filer, you may end up paying almost double in advance taxes compared to a filer. Filing on time saves money and trouble.
July 2025 Tax Changes and What They Mean for You
In July 2025, the government revised income tax slabs to expand the tax net and provide relief to middle-income earners.
What is a tax slab?
A tax slab is an income range that decides how much tax you pay. Higher income = higher tax percentage.
Key Updates for 2025
- Salaried individuals: Middle-income earners now fall in lower tax brackets, paying less tax.
- Businesses: Stricter reporting rules, especially for online and digital transactions.
Looking Ahead to 2026
The FBR plans to digitize filing further, with salary and banking data integrated directly into the IRIS system. Filing will be easier, but monitoring will be stricter.
Pakistan Income Tax Slabs 2025–26
The following slabs were announced in the July 2025-2026 budget for salaried individuals:
| Annual Income (PKR) | Tax Payable |
| Up to 600,000 | 0 |
| 600,001 – 1,200,000 | 1% of the amount exceeding 600,000 |
| 1,200,001 – 2,200,000 | 6,000 + 11% of the amount exceeding 1,200,000 |
| 2,200,001 – 3,200,000 | 116,000 + 23% of the amount exceeding 2,200,000 |
| 3,200,001 – 4,100,000 | 346,000 + 30% of the amount exceeding 3,200,000 |
| Above 4,100,000 | 616,000 + 35% of the amount exceeding 4,100,000 |
Example Calculations:
- If Annual Income = 900,000
Tax = 1% of (900,000 – 600,000) = 3,000 - If Annual Income = 2,500,000
Tax = 116,000 + 23% of (2,500,000 – 2,200,000)
= 116,000 + 69,000 = 185,000 - If Annual Income = 5,000,000
Tax = 616,000 + 35% of (5,000,000 – 4,100,000)
= 616,000 + 315,000 = 931,000
FAQs
1. What happens if I miss the last date of my income tax return?
You’ll face penalties and late fees. You’ll also lose filer status, which increases your tax deductions on transactions.
2. Can I file my FBR income tax return without an accountant?
Yes. The FBR IRIS portal allows individuals to file on their own, especially for salaried persons with simple income structures.
3. How do I download the FBR income tax return form for salaried persons?
Log in to IRIS, go to “Declarations,” and select the relevant year. The form for salaried individuals will be available to fill.
4. Does FBR always extend the income tax return date?
Not always. In recent years, the FBR has reduced extensions to encourage timely filing. Never rely on an extension — always file before the deadline.
5. How can I check income tax return status after filing?
Simply log into your IRIS account and view the “Declarations” tab. You’ll see the updated status of your submission.
Conclusion
Filing your income tax return in Pakistan doesn’t have to be stressful. Whether you’re a salaried individual or a business owner, the process is straightforward once you understand the steps. With the July 2025-2026 changes, timely income tax return filing is more important than ever to avoid penalties and enjoy filer benefits.
Tax filing is not just a legal duty but also a part of effective financial management. Keeping your records transparent ensured both credibility and stronger financial security.
If you need professional help with income tax return filing or understanding the July 2025 tax updates, DSI Law Associates is here to assist. Our team ensures accurate filing, compliance with FBR, and peace of mind for both salaried and business taxpayers.