Income Tax Return

Income Tax Return:

In Pakistan, an income tax return is a formal document that individuals and businesses are required to submit to the Federal Board of Revenue (FBR), which is the country's tax authority. The income tax return provides a comprehensive report of an individual's or business's income, expenses, deductions, and tax liability for a specific tax year. It is a way for taxpayers to disclose their financial details and fulfill their tax obligations

Key points about income tax returns in Pakistan:

• Filing Requirement: Individuals and businesses with taxable income are legally obligated to file income tax returns in Pakistan. The specific income thresholds and tax rates may vary depending on the individual's or business's circumstances.
• Tax Year: The tax year in Pakistan typically runs from July 1st of one year to June 30th of the following year. Income tax returns must be filed within a certain timeframe after the end of the tax year, as specified by the FBR.
• Documentation: When filing an income tax return, taxpayers need to provide documents and information related to their income, expenses, assets, liabilities, and other financial matters. This may include salary statements, bank statements, property details, and evidence of tax deductions.
• Online Filing: The FBR has introduced an online system known as the Iris system, which allows individuals and businesses to file their income tax returns electronically. This system simplifies the filing process and makes it more convenient.
• Tax Liability: Based on the information provided in the income tax return, the FBR calculates the taxpayer's tax liability. This may result in a tax refund (if too much tax has been withheld) or a tax payment (if too little tax has been paid).