Filing your income tax return is how you become an active taxpayer (a “filer”) and unlock lower withholding rates. Here is a plain-language walkthrough of the whole process.
If you are a salaried person earning above the annual exemption limit, a business owner, a freelancer, a property owner, or you own a vehicle above a certain engine capacity, you are generally required to file an annual income tax return with the FBR. Filing is also strongly recommended even below the threshold, because being on the Active Taxpayers List (ATL) saves you money on many everyday transactions.
Pakistan’s tax year runs from 1 July to 30 June. For most individuals and salaried taxpayers, the return for the year is due by 30 September, although the FBR sometimes announces extensions. Filing late can mean a surcharge and a delay before your name appears on the ATL, so it is best to file early.
First, register for a National Tax Number (NTN) through the FBR’s IRIS portal using your CNIC. Once registered, you log in to IRIS, complete the income tax return and the accompanying wealth statement, and submit. After your return is processed you appear on the next ATL update, officially making you a filer.
Non-filers pay significantly higher withholding tax on banking transactions, vehicle registration and token fees, property transfers and more. Being on the ATL as a filer means you pay the lower, standard rates — for many people the annual saving is far greater than the cost of filing.
The most frequent issues are skipping the wealth statement, figures that don’t reconcile with your bank records, and missing the deadline. A small error can hold up your ATL status, so accuracy matters.
New for Tax Year 2026: the surcharge to rejoin the Active Taxpayers List after filing late has risen sharply — Rs 25,000 (individual), Rs 50,000 (AOP) and Rs 100,000 (company) under the Finance Act 2026. Read the full breakdown →
Our consultants take care of NTN registration and annual return filing end-to-end, 100% online, at prices up to 30% below other portals.
This guide is general information, not legal or tax advice. Rules and thresholds change with each Finance Act — contact us for advice on your specific situation.