Frequently Asked Questions

Income tax is a tax on income earned by individuals and businesses. If your annual income exceeds the exemption threshold set by the government, you are required to file and pay income tax.

According to the Income Tax Ordinance, 2001, the following individuals must file tax returns:

• Salaried individuals earning above the taxable limit
• Business owners and professionals
• Property or vehicle owners (as per FBR notices)
• Anyone who received a notice from FBR
• NTN holders

Typically, the deadline is 30th September each year for individuals and businesses. Extensions may be granted, but late filing can result in penalties.

NTN stands for National Tax Number. It is issued by FBR when you register as a taxpayer. You can apply for NTN online through FBR’s IRIS portal.

You can register through the IRIS Portal (https://iris.fbr.gov.pk/) by creating an account with your CNIC and email.

A filer is a person whose name appears on the Active Taxpayer List (ATL) maintained by FBR. Non-filers are not listed and are subject to higher tax rates on banking transactions, property, and vehicle purchases.

To become a filer, submit your tax return via the IRIS portal. Once accepted, your name will appear in the ATL usually after a few weeks.

Penalties can range from Rs. 1,000 to Rs. 50,000, depending on your income and type of non-compliance. Continued failure may lead to legal action or freezing of bank accounts.

No, an NTN or registration on IRIS is mandatory to file income tax returns in Pakistan.

• CNIC
• Salary Certificate / Pay Slip
• Bank statements
• Tax deduction certificates (if any)
• Evidence of expenses for business owners
• Property documents (if applicable)
• NTN

• Lower withholding tax on banking and property transactions
• Legal proof of income
• Ease in getting visas, loans, and credit cards
• Avoidance of penalties and legal issues