Introduction:

Filing an income tax return may sound complex and intimidating, especially if you’re doing it for the first time. But in reality, it’s a straightforward process once you understand the basics. Whether you’re a salaried person, freelancer, business owner, or student earning above the taxable limit, filing your income tax return is your legal duty and it comes with many benefits. If you’re wondering how to get started, this guide will walk you through the steps on how to file an income tax return in Pakistan quickly and correctly. Understanding tax compliance is also essential for professionals pursuing roles in finance and governance, such as those enrolled in a Company Secretary Course.

In this blog, you’ll learn:

• What an income tax return is
  
• Who should file it
  
• Why it’s important
  
• Step-by-step guide to filing
  
• Common mistakes to avoid
  
• How to start even if you’re a beginner
  

Let’s dive in.

What Is an Income Tax Return?

An Income Tax Return (ITR) is a document you submit to your country’s tax authority (like FBR in Pakistan or IRS in the U.S.) to report your income, expenses, tax deductions, and taxes paid or owed in a financial year.

It’s a way of saying:

“Here’s how much I earned and here’s how much tax I owe (or already paid).”

Who Should File an Income Tax Return?

You must file a tax return if:

• Your annual income is above the taxable threshold
• You’re a salaried employee, businessperson, or freelancer
• You earned money from rent, dividends, or capital gains
• You want to be listed as an Active Taxpayer for benefits like lower withholding taxes
  
• You need to prove your income for visas, loans, or scholarships
  
• You’re eligible for tax refunds
  

In Pakistan (2025), if your annual income exceeds PKR 600,000 (salaried) or PKR 400,000 (business/freelance), you are required to file.

Benefits of Filing an Income Tax Return:

1. Get Listed in the Active Taxpayers List (ATL)
2. Lower tax rates on banking transactions, vehicle tokens, and property purchases
3. Required for visa applications (especially Schengen, U.S., Canada, etc.)
   
4. Essential for bank loans and credit cards
5. Claim tax refunds or adjustments
6. Establish your financial history and credibility

Step-by-Step Guide to Filing Your Income Tax Return:

Step 1: Get Registered:

If you’re filing for the first time:

• Register yourself with the FBR (Pakistan) via the IRIS Portal
  
• You’ll need your CNIC, email, and mobile number
• Create your FBR online account
  

Step 2: Collect Necessary Documents:

Prepare the following:

• Salary certificate (if employed)
  
• Bank statements
  
• Utility bills (if applicable)
  
• Business income or freelance invoices
  
• NTN number (for businesses)
  
• Tax deduction certificates (if any)
  
• Assets & liability summary (if applicable)
  

Step 3: Log In to the Tax Filing System:

• Use IRIS or your country’s tax portal
  
• Navigate to “Declaration” → “Income Tax Return”
  

Step 4: Enter Income Details:

• Add details of your income: salary, business, freelance, investments, etc.
  
• Declare deductions (like zakat, donations, education expenses)
  

Step 5: Add Tax Paid / Deducted:

Include taxes already deducted at source by banks, employers, etc.

Step 6: Declare Assets and Liabilities:

Mandatory for filers with assets, business, or income over a certain threshold

Step 7: Review and Submit:

• Double-check for accuracy
  
• Submit your return before the deadline (typically September 30 in Pakistan)
  

Step 8: Download Acknowledgement:

Keep the acknowledgment receipt for record, visa, or bank use.

Common Mistakes to Avoid:

Entering the wrong CNIC or NTN
Forgetting to declare all sources of income
Skipping assets/liability section (if required)
Not claiming tax deductions you’re eligible for
Filing late (results in penalties)

Tools to Help You:

You can use:

• IRIS FBR Portal (Pakistan)
• Online tax filing services
• Excel or tax calculators
• Consult a tax expert or advisor

If you’re confused, it’s wise to take a short taxation course or consult a professional for your first return.

Learn to File Taxes Yourself:

The best way to take control of your finances is to learn how to file your tax return. In 2025, many professionals, students, and freelancers are:

• Learning tax filing as a side skill
• Offering it as a freelance service
• Avoiding unnecessary consultant fees
• Gaining more control over their financial records
  

Who Can Teach You?

You can learn through:

• Online courses on taxation
• YouTube tutorials
• Freelancers offering Tax Training
• Institutes offering practical tax return filing workshops
  

You don’t need a finance degree just some dedication and practice.

Filing Every Year Builds Your Record:

Filing tax returns every year, even if you have no taxable income, builds your financial history. It helps in:

• Buying property
• Applying for visas
• Getting business approvals
• Reducing withholding taxes on services
  

When to File?

In Pakistan, the annual filing deadline is typically September 30, unless extended by the Federal Board of Revenue (FBR). It’s best to file early and avoid last-minute stress or server overloads.

Final Thoughts!

Filing your income tax return may seem like a hassle at first, but once you learn it, it becomes a powerful financial tool. You save money, get official recognition, and unlock many benefits. In today’s world, being a tax filer is not optional it’s essential.

So if you’ve never filed before, this is the year to start. Take the first step. Learn. File. Grow.