Filing Income Tax Return is compulsory for all the National Tax Number (NTN) holders if they earn a taxable income per year. File Income Tax Return in 2020 if you earn a taxable income which is Rs. 600,000 from the year 2019 and onwards. For this purpose, you first have to register with the FBR. Making NTN is the first procedure in Filing the Income Tax Return in Pakistan 2020. To make NTN in Pakistan you can watch this video or you can read this article.
You can simply Contact Us or follow my step-by-step procedure to learn to file income tax returns in 2020.
Login to the IRIS portal
Open the IRIS Portal and login with your CNIC and Password. You can use the same password that you have created at the time of creating NTN.
If you have forgotten your password of IRIS Portal then you can click on the “forgot password” button. An email and a code will be sent on your mobile number and email address. Simply copy both of these and enter them into the relevant field in IRIS Portal.
How to Change PIN in IRIS Portal?
It happens many times that when a person login to the IRIS portal he no longer remembers the PIN he had generated at the time of Registration. You can simply click on the “generate PIN” option to generate a new PIN.
File Your Income Tax Return
Filing an income tax return is quite tricky work. If you do not know how to file the income tax return as a salaried person, business person, or private company then you can Contact Us. Otherwise, follow the steps below:
- there is a form namely “114” which is also called income form.
- after that, you have to file the “form 116” which is also called a wealth statement.
- put all your income and wealth in the relevant sections of both of these forms.
- in the end, you have to reconcile both of these forms so that your calculations will be done perfectly.
How to Reconcile the Wealth Statement
To successfully submit and reconcile the wealth statement you have to do a perfect calculation in both of these forms. As you know every year’s income and expense change from another year that’s why if you did not reconcile the wealth statement then you are not allowed to submit/file your tax return. The system will halt you from filing the Tax Return.
That’s why the reconciliation of the wealth statement is very important. To file your Income Tax Return online, you must complete the Return of Income form and Wealth Statement (statement of assets & liabilities) form. To facilitate the taxpayers, the Knowledge Base portal provides step-by-step written and video guides on filing Income Tax returns and Wealth Statements.
File Income Tax Return as a Salary Person
The Federal Board of Revenue (FBR) has issued a new form for the salary persons. It is made to facilitate the salaried person whose income is 50% more than any other income in a complete year. This declaration form is called 114(1). Both the Income and wealth statement is given in this newly created form.
Revising the Income Tax Return
If you have filed your income tax return wrongly, then you don’t need to panic. You can revise your income tax return within 5 years. Although this is not so easy to do. First, you have to submit an application in FBR and wait for their reply. If they approve your application then you can revise your income tax return.
Revising the Wealth Statement
You can also revise/edit your wealth statement (assets & liabilities). Please note that you can revise your wealth statement before receiving the notice under subsection 9 of section 122 Income Tax Ordinance 2001. In this case, you don’t need to submit an application to FBR. You can do it yourself.
Filing Income Tax After Due Date
It is often asked by the people that how to file income tax after the due date? For this reason, you have to file it as you are filing it within the due date. Simply follow the above-said procedure to file your income tax return after the due date.
Things to Remember
The common things that you must remember are:
- File your income tax return in-time
- Do perfect calculations
- Match your income with your previous year’s income
- Keep the record of your filed income tax return for at least 6 years.
Credits, Rebates, and Exemptions for Income Tax Return
You can only avail of these benefits when you are an active income taxpayer. These are not available for a non-taxpayer person.
Penalty for not Filing Income Tax Return
FBR has stated serious and clear instructions regarding not filing the income tax return. If you are earning a taxable income per year and still you don’t file your tax return then you will be prosecuted and penalized under Income Tax Ordinance 2001.
Read this: Create your NTN Number in Pakistan
|Contact Us for Filing your Income Tax Return|
Please fill out the below form to contact us for Filing your Income-tax Return. When you send the message, a member of our team will contact you for further details.