Reporting income is one of the principal requirements of tax compliance under Pakistani laws. The FBR asks taxpayers to update source through IRIS. In this article you will learn how you can update your source of income on IRIS.
Steps to Update Your Source of Income on IRIS
- Login to your IRIS Account: Enter your IRIS credentials to access your account.
- Look for Manage Profile: Find the section titled “Manage Profile”
- Proceed to the Source Section: Select the “Source” section.
- Choose the Type or Category of Your Income: From the list given, select the type(s) of income that apply to you.
Importance of Selecting the Correct Income Source
- Accurate Tax Calculation: The FBR may use source information about your income to accurately verify your tax liability.
- Avoiding Audits: Mistake in the declaration of source of income will get you more chances of being audited.
Tax benefit access: Most tax benefits depend on the source of earnings.
Eligibility for tax refund: proper income reporting for tax refund eligibility.
Learn more: Is Income Tax Deduction on Electricity Bills in Pakistan Refundable? (Section 235 Explained)
Additional Considerations
Salary Income: If one receives salary income, one needs to file a salary tax return. However, when one has other kinds of income, a regular income tax return has to be filed.
Income from Several Sources: If the person receives income from multiple sources, then make sure you check all the boxes which are applicable so that you don’t miss reporting it.
Please Note: Updating the source of income on FBR IRIS is highly important for tax reporting to avoid penalties and to be in compliance with tax laws and to optimize tax liability.
