Income Tax Return Filing for Salaried Individuals: Complete Guide

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The Office Lunch That Changed Everything about Income Tax Return

Kamran and his colleague Hamza were having lunch when Hamza casually mentioned, “Yaar, I just got my tax refund Rs. 47,000 back in my account.”

Kamran nearly choked on his biryani. “Refund? Tax refund? From FBR?”

“Yeah, I overpaid last year. Filed my return, showed the calculation, and they returned it.”

Kamran stared at him. For five years, Kamran’s company had been deducting tax from his salary. He assumed that was the end of it. He never filed a return. Never checked anything.

That lunch cost him Rs. 2.3 lakh.

Not the biryani. The five years of not filing returns meant:

He stayed a non-filer (paid double tax on everything)
He couldn’t claim his refund (yes, salaried people can get refunds)
He lost opportunities (couldn’t buy property at filer rates)
He missed out on financial credibility when applying for a car loan

All because he believed a dangerous myth: “My employer deducts tax, so I don’t need to file.”

If you believe this too, keep reading. This article might save you lakhs of rupees and years of unnecessary stress.

Who Must File a Return? (The 60-Second Test)

You don’t need a tax consultant to figure this out. Just ask yourself these questions:

Question 1: Is your annual salary over Rs. 600,000?
→ If YES, you must file.

Question 2: Does your salary slip show any tax deduction (even Rs. 100)?
→ If YES, you must file.

Question 3: Do you have any other income sources beyond your salary?
(Rent from property, side business, freelancing, investments, dividends)
→ If YES, you definitely must file.

Question 4: Do you want to be a filer and enjoy lower tax rates?
→ If YES, then file—even if your salary is under Rs. 600,000.

Question 5: Do you own property worth over Rs. 25 million, or a vehicle with an engine capacity of over 1000cc?
→ If YES, you must file regardless of income.

If you answered “yes” to even ONE question, you need to file an income tax return every single year before September 30.

What You Actually Need to File (No Panic, No Drama)

Here’s the complete, honest list of what you need. Nothing hidden, nothing complicated:

Documents You’ll Need:

1. CNIC (original or copy)

2. NTN (National Tax Number)

If you don’t have one, get it first (takes 15 minutes online at IRIS)
Many salaried people already have an NTN (your employer registered you)
Check your salary slip or ask HR

3. Annual Salary Certificate

This is the most important document
Ask your HR/Accounts department for: “Annual Salary Certificate” or “Tax Certificate for FY 2025”
It shows: Total salary earned + Total tax deducted
If your company refuses or delays, they’re legally required to provide it—insist politely

4. Bank Account Details

Account number
Bank name and branch
Closing balance as of June 30

5. Investment Details (if any)

Shares, mutual funds, prize bonds
Just the total value—you don’t need to list every transaction

Information You’ll Need:

Total salary for the year (July to June)
Tax already deducted (shown on salary certificate)
Other income sources (if any): rent, freelancing, business
Property details: addresses, estimated values, purchase dates
Vehicle details: make, model, year, registration number
Liabilities: loans (home loan, car loan, personal loan amounts)

That’s it. Seriously.

Complete Income Tax Filing Process (Real Steps, Zero Confusion)

Let me walk you through this exactly as it happens on screen. No skipping steps.

Step 1: Log into FBR Iris Portal (2 minutes)

Open your browser and go to: https://iris.fbr.gov.pk

Username: Your CNIC (13 digits, no dashes)
Example: 3520212345671

Password: Use your password and login into the portal.

If this is your first time logging in, create your new account.

Step 2: Navigate to Income Tax Return

Once inside the portal:

Look at the left sidebar menu
Click on “Returns”
A dropdown will appear
Select “Income Tax Return”
Choose the correct Tax Year

Important: Tax Year 2025 means income earned from July 1, 2024 to June 30, 2025. You file this return in 2025 (deadline: September 30, 2025).

Make sure you’re selecting the right year.

Step 3: Choose Your Return Form

FBR will show you different return forms. For salaried individuals, you have two main options:

Option 1: Simplified Return (For most salaried people)

If your only income is a salary
No business, no major investments
This is the easiest form

Option 2: Regular Return (If you have additional income)

Salary + rent
Salary + freelancing
Salary + small business

Pro tip: If you’re confused, start with the Simplified Return. If the system says you need the Regular one, it’ll tell you.

Click “Start New Return”

Step 4: Enter Your Income Details

This is the main section. Take your salary certificate and enter the information carefully.

A. Salary Income

The form will ask:

Employer’s Name: (As per your salary slip)
Employer’s NTN: (Ask HR, or it’s on your salary certificate)
Total Gross Salary for the Year: Rs. ________
Tax Deducted by Employer: Rs. ________

Where do you find these numbers?

Open your salary certificate. It clearly shows:

“Total Salary Paid: Rs. 9,60,000”
“Total Tax Deducted: Rs. 48,000”

Just copy those numbers into the portal.

B. Other Income (if applicable)

Did you earn anything else during the year?

Rental Income: If you own a shop/house and receive rent, enter the total rent received
Business Income: If you run a side business, enter profit (income minus expenses)
Freelancing/Professional Income: Upwork, Fiverr, consulting—enter total received
Investment Income: Dividends, profit on shares

If you had no other income, leave these sections blank.

Click “Next”

Step 6: Declare Your Assets

This is where people get nervous. “Why does FBR want to know what I own?”

Answer: They want to see if your assets match your income. If you earn Rs. 50,000/month but own three plazas, they’ll ask questions.

But if your assets are reasonable for your income, there’s no issue.

A. Immovable Property (Houses, Plots, Shops)

For each property you own, enter:

Type (house/plot/apartment/commercial)
Address
Size (sq. yards or sq. feet)
Approximate value (be reasonable, use market rate or DC value)
Date of purchase
How you acquired it (purchased/inherited/gift)

Example:

“Residential Plot, 5 Marla, Bahria Town Phase 8, Rawalpindi, Value: Rs. 55 lakh, Purchased in 2021”

Don’t own property? Leave this section blank. No problem.

B. Vehicles

For each vehicle (car, bike):

Make and model
Registration number
Year of purchase
Approximate value

Example:

“Honda Civic 2019, Registration: ABC-123, Value: Rs. 35 lakh”

C. Bank Accounts

List all your bank accounts:

Bank name
Account number
Closing balance as of June 30

Example:

“HBL, Account: 1234567890123, Balance: Rs. 2,50,000”

D. Investments (Shares, Mutual Funds, Prize Bonds)

If you have investments, enter:

Type (shares/mutual funds/prize bonds)
Total value as of June 30

If you don’t have investments, skip this.

Click “Next”

Step 7: Declare Your Liabilities

Do you owe money to anyone? Banks, companies, relatives?

A. Bank Loans

Home loan: Rs. ________
Car loan: Rs. ________
Personal loan: Rs. ________

B. Other Liabilities

Loan from employer: Rs. ________
Other debts: Rs. ________

No loans? Leave blank.

Why declare liabilities?

Because it explains your assets. If you bought a Rs. 50 lakh house, but your income is Rs. 8 lakh/year, showing a Rs. 35 lakh home loan explains the gap.

Click “Next”

Step 8: Review the Tax Calculation

The portal now automatically calculates:

Total Tax Liability for the Year: Rs. ________ (based on your income)
Tax Already Paid: Rs. ________ (what your employer deducted)
Balance Due: Rs. ________ OR Refund Due: Rs. ________

Three scenarios:

Scenario 1: Balance is Zero

Your employer deducted exactly the right amount
You owe nothing, FBR owes you nothing
Perfect. Just submit.

Scenario 2: You Owe Additional Tax

Your employer under-deducted (happens if you had other income)
The portal shows: “Tax Due: Rs. 15,000”
You need to pay this before submitting

How to pay:

Click “Generate PSID” (Payment Slip ID)
Pay online through 1-Link or your bank’s app
Or visit any bank branch with the payment slip
Upload payment proof in the portal

Scenario 3: FBR Owes You a Refund

Your employer over-deducted
The portal shows: “Refund Due: Rs. 8,500”
Submit your return
FBR will process the refund in 2-6 months and deposit it in your bank account

Step 9: Submit Your Return

Review everything one last time:

Income figures correct?
Assets listed properly?
No typos in property addresses or CNIC numbers?

Satisfied?

Click “Final Submit”

You’ll see a success message: “Your return has been filed successfully.”

Download your Filed Return PDF (complete copy of your return)

Save these files. Email them to yourself. Print a copy. Keep it safe.

You’re done. Congratulations—you’re now officially ahead of 70% of salaried Pakistanis.

Step 10: Verify You’re Now a Filer (Next Day)

If it shows “Active Taxpayer” → Perfect. You’re officially a filer. Screenshot this page.

If it still shows “Non-Filer” → Wait another day. The system updates in batches.

What Filing Your Return Actually Does (Beyond Just Compliance)

Most people think filing a return is just about “following the law” or “avoiding FBR notices.” But it does so much more:

1. You Officially Become a Filer

Within 24-72 hours of filing, your name appears on FBR’s Active Taxpayers List. This single status change saves you thousands on every transaction.

2. You Can Claim Refunds

Yes, salaried people can get tax refunds. If your employer over-deducted, or if you’re entitled to certain exemptions, you file your return, show the calculation, and FBR returns the extra amount.

Hamza got Rs. 47,000 back. Some people get even more.

3. You Build Financial Credibility

When you apply for:

Bank loans → They ask for your income tax return
Foreign visas → Embassies want proof of income and tax compliance
Business partnerships → Serious partners check if you’re a filer
Government contracts → You must be an active taxpayer

Your filed returns become your financial resume.

4. You Avoid Nasty Surprises

FBR’s system is automated now. They can see:

All your bank transactions
Property you bought or sold
Vehicles registered in your name
Your employer’s tax submissions

If they see income but no return filed, the system sends automatic notices. Some people’s CNICs get blocked. Bank accounts get frozen temporarily.

Filing your return keeps you off FBR’s radar—in a good way.

Can You Actually Get Money Back? (Yes, Here’s How)

Most people don’t know this, but salaried individuals can get tax refunds.

Here’s how it works:

Scenario 1: Employer Over-Deducted Tax

Your employer calculates tax on your gross salary. But you might be eligible for certain deductions they didn’t account for:

Zakat already paid
Donations to approved charities (Edhi, Shaukat Khanum, etc.)
Investment in pension funds
Profit-on-debt deduction (if applicable)

Example:

Your gross salary: Rs. 12 lakh/year
Tax deducted by employer: Rs. 55,000
You donated Rs. 1 lakh to Shaukat Khanum (approved charity)
Actual tax liability after deduction: Rs. 42,000
Refund due: Rs. 13,000

When you file your return and claim these deductions, FBR verifies and returns the difference.

Scenario 2: Multiple Employers in One Year

You changed jobs mid-year. Both employers deducted tax separately, not knowing about each other.

When you file your consolidated return, the system might show you overpaid.

How to Claim Refund:

File your return accurately
Show all deductions you’re entitled to
The portal calculates automatically
If refund is due, submit your return
FBR processes it (takes 2-6 months)
Amount is directly deposited in your bank account

Keep proof of:

Donation receipts (with organization’s NTN)
Zakat receipts
Investment certificates

FBR may ask for these during verification.

Common Questions People Ask (Let’s Clear Everything)

Q: What if my salary is Rs. 50,000/month but no tax is being deducted?

A: If your annual salary is under Rs. 600,000 (Rs. 50,000 × 12 = Rs. 6 lakh), you’re below the taxable threshold. You’re not required to file, but you can file a “nil return” to become a filer voluntarily.

Why would you? To enjoy filer benefits on future transactions.

Q: I changed jobs twice this year. How do I file?

A: Get salary certificates from all three employers (including the ones you left). Add up the total salary and total tax deducted from all three. File one consolidated return showing all income.

Q: What if my employer refuses to give me a salary certificate?

A: They’re legally required to provide it. Ask politely. If they still refuse:

Check your salary slips—they show the monthly salary and tax
Add up 12 months manually
If needed, file a complaint with FBR against your employer (they’ll be fined)

Q: I made a mistake in my filed return. Can I fix it?

A: Yes. You can file a Revised Return before the September 30 deadline. After the deadline, you need to file an amendment (more complicated, might involve penalties).

Q: What if I honestly don’t remember if I filed last year?

A: Log in to the Iris portal. Go to “Returns” → “View Filed Returns.” It shows all your previously filed returns.

Or check your status at the verification portal. If you’re a “Non-Filer,” you probably didn’t file.

Q: Do I need to hire a tax consultant?

A: For a simple salary return? No. The portal is designed for non-experts.

Hire a consultant only if:

You have complex income sources (multiple businesses, international income)
You own significant assets and need proper wealth reconciliation
You’re being audited or facing a tax dispute
You simply don’t have time and want someone else to handle it

Cost: Rs. 3,000-10,000 for a salaried person’s return. More for complex cases.

Q: What happens if I don’t file?

A: You remain a non-filer. Which means:

You pay 2x-3x tax on most transactions
You can’t buy property easily (or pay heavy tax if you do)
You risk FBR notices and penalties
Your CNIC might get blocked
Banks may refuse services
You lose financial credibility

Is it worth the risk just to avoid 20 minutes of filing?

Q: Can I file for previous years if I missed them?

A: Yes, but:

Penalties apply for each late year
You’ll need to file year by year (can’t skip)
It’s complicated—you might need professional help

Better approach: File the current year first, become a filer. Then work on previous years gradually.

Why People Still Avoid Filing (And Why Those Reasons Are Myths)

After talking to hundreds of people, I’ve identified the five main reasons people avoid filing:

Reason 1: “It’s too complicated.”

Reality: It’s not. You just read a complete guide in plain English. The process takes 20-30 minutes. This article is longer than the actual filing.

The truth: People avoid it because it’s unfamiliar, not because it’s hard.

Reason 2: “FBR will audit me.”

Reality: Less than 0.5% of returns get audited. And audits are targeted—they audit people whose returns show suspicious patterns (huge assets with tiny income, major inconsistencies, etc.).

If you’re honest in your return, even an audit is just verification. Annoying? Yes. Scary? Not really.

The truth: Filing actually reduces your chances of scrutiny because you’re proactively complying.

Reason 3: “I don’t have time.”

Reality: You spent more time scrolling Instagram today than it takes to file a return.

The truth: It’s not about time. It’s about priority.

Reason 4: “My income is too low, FBR doesn’t care about me.”

Reality: FBR’s system is automated. It doesn’t “care” about anyone specifically. It flags everyone whose transactions cross certain thresholds.

You might be small, but your bank reports every transaction. Your employer reports your salary. The system sees all of it.

The truth: You’re already visible. Filing just makes you visible in the right way.

Reason 5: “I’ll do it next year.”

Reality: Next year you’ll say the same thing. This is how people end up like Kamran—5 years later, thousands of rupees poorer, wishing they’d just done it.

The truth: The best time to file was last year. The second-best time is today.

Final Thoughts: The Conversation Every Pakistani Needs to Have With Themselves

Let me be completely honest with you.

I’m a tax lawyer. I’ve seen thousands of cases. I’ve seen people pay lakhs in penalties because they avoided filing. I’ve seen families stressed because the husband’s CNIC got blocked. I’ve seen business deals fall through because someone wasn’t a filer.

And every single time, the person says the same thing: “I wish I’d just filed on time.”

Here’s the uncomfortable truth:

The Pakistan of 2026 is not the Pakistan your parents grew up in. Back then, you could run a business in cash, stay off the radar, and live comfortably.

That world is gone.

Today, everything is documented. Your phone is registered to your CNIC. Your SIM is biometric. Your bank account reports to FBR. Your property deals are recorded. Your vehicle registration is linked.

You’re not invisible anymore. You’re just undocumented—and that’s expensive.

The government wants you in the system. The tax net is expanding. The automated systems are getting smarter.

You have two choices:

Choice 1: Keep avoiding it. Stay a non-filer. Pay double tax on everything. Live with anxiety. Hope FBR never notices you. Keep Googling “what happens if I don’t file” every few months.

Choice 2: Take 30 minutes. File your return. Become a filer. Pay the correct (lower) rates. Sleep peacefully. Build your financial credibility. Set yourself up for success in the documented economy.

Which choice sounds better?

Legal Disclaimer:

Tax laws, rates, thresholds, and procedures change regularly. This guide is based on information current as of January 2026 and reflects general guidance for salaried individuals.

This article is for educational purposes and does not constitute personalised tax advice. For complex situations, international income, large assets, or ongoing tax disputes, please consult a qualified tax professional or chartered accountant.

FBR procedures and portal interfaces may be updated. Always refer to the official FBR website (www.fbr.gov.pk) for the latest instructions.

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STILL NEED HELP?

If you still need help with income tax return filing, FBR notice responses, or corporate tax compliance, consult us without any hesitation to avoid penalties and future legal issues. Professional guidance ensures accurate filing, maximizes legitimate deductions, and protects you from costly mistakes that could take years to resolve.