Filing your income tax returns in Pakistan has become easier with the introduction of FBR’s eFiling system.
This system allows you to submit your tax returns online, saving you time and effort.
In this guide, we’ll explain the process of eFiling income tax returns in Pakistan, along with the benefits of using this method.
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What is eFiling of Income Tax Returns?
E-filing of income tax returns is the process of submitting your tax returns online through the Federal Board of Revenue (FBR) website. This online method is quicker and more efficient than the traditional paper filing process. The FBR provides a portal called IRIS, where taxpayers can easily file their income tax returns.
Why Choose eFiling for Your Income Tax Returns?
There are several reasons why you should choose eFiling over the manual filing of tax returns.
First, eFiling reduces the chance of making mistakes since the FBR’s system automatically calculates your tax. It’s also more convenient because you can file your taxes anytime and anywhere with an internet connection.
Furthermore, eFiling is legally required for certain taxpayers in Pakistan. The government encourages everyone to use eFiling to make the tax system more transparent and efficient.
By using eFiling, you ensure that you are following the law and helping to improve the tax system.
Key Terms and Definitions in FBR eFiling
To understand eFiling better, here are some key terms you need to know:
- NTN (National Tax Number): This is a unique number given by the FBR, which is used for all tax-related activities.
- CNIC (Computerized National Identity Card): This is your ID number, which can also be used for tax filing if you don’t have an NTN.
- IRIS: This is the online portal provided by FBR for eFiling income tax returns.
- Tax Year: This refers to the period from July 1st to June 30th of the next year, for which you are filing your tax returns.
Step-by-Step Guide to eFiling of Income Tax Returns
Step 1: Registering with FBR
The first step to eFiling is to register with the FBR. If you haven’t registered yet, visit the FBR website and fill out the e-enrollment form.
You’ll need to provide your CNIC, contact details, and other personal information. Once registered, you’ll receive an NTN or use your CNIC for individual tax filings.
You also like reading this guide on How to apply for NTN online.
Step 2: Logging into the IRIS System
After registering, you can log in to the IRIS portal using your NTN or CNIC and password. The IRIS system is designed to be easy to use, and it gives you access to various services, including filing your income tax returns.
Step 3: Preparing Your Documents
Before you start filing, gather all the documents you’ll need. These include your income statements, bank statements, details of any deductions, and records of tax payments made during the year. Having these documents ready will make the eFiling process smoother.
You can read this guide for documents required for FBR filing of income tax returns.
Step 4: Filling Out the Tax Return Form
Once you’re logged in, choose the correct tax return form based on your income type. The form will ask for your personal details, income information, and any deductions or tax credits you qualify for. The IRIS system will guide you through each step and automatically calculate your tax liability.
Step 5: Submitting Your eFiling
After completing the form, review all the details to make sure they are correct. Once you’re sure everything is accurate, submit your tax return through the IRIS portal. You’ll receive a receipt as proof of submission, which you should save.
Step 6: Payment of Any Tax Due
If you owe any taxes, it’s important to pay them before the deadline. The FBR offers several online payment methods, including direct bank transfers and online banking. Be sure to pay on time to avoid any penalties.
Common Mistakes to Avoid When eFiling Your Income Tax Returns
Even though eFiling is easier than manual filing, there are still some common mistakes you should avoid:
- Incorrect Information: Always double-check your details to make sure they are correct. Mistakes in your CNIC, income details, or deductions can cause problems or delays.
- Missing Deadlines: The FBR has strict deadlines for submitting tax returns. If you miss the deadline, you could face fines.
- Ignoring FBR Notifications: The FBR might send notifications through the IRIS portal or by email. Ignoring these could lead to missed deadlines or other issues.
FAQs About eFiling of Income Tax Returns
Q: Who needs to eFile income tax returns in Pakistan?
All individuals and businesses with taxable income above a certain level are required to file their tax returns electronically.
Q: When is the deadline for eFiling income tax returns?
The usual deadline is September 30th, but it’s best to check the FBR’s announcements for any changes.
Q: Can I eFile without an NTN?
You need an NTN or can use your CNIC for individual tax filings to eFile your income tax returns.
If you don’t have NTN, you can read this guide How to apply for NTN online
Conclusion
FBR’s eFiling system for income tax returns is a convenient, secure, and efficient way to meet your tax obligations in Pakistan.
By following the steps outlined in this guide, you can easily file your returns online and ensure that your submission is accurate and timely. Using eFiling not only keeps you compliant with the law but also helps improve the overall efficiency of the tax system in the country.
Whether you’re a salaried individual, business owner, or freelancer, making eFiling your preferred method for tax returns is a smart decision.
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