FBR Income Tax Return Filing Guide — Tax Year 2026 (Step by Step)

Filing your income tax return is one of the most important financial steps a Pakistani can take. It keeps you on the Active Taxpayer List (ATL) — which determines whether you pay the lower filer rate or the higher non-filer rate on everything from property purchases to bank withdrawals.

Tax Year 2026 covers income earned between July 1, 2025 and June 30, 2026. The filing deadline is September 30, 2026.

Budget 2026-27 note: Income tax slabs have changed significantly from July 1, 2026. However, your Tax Year 2026 return covers income earned before July 1, 2026 — so the old slabs (FY 2025-26) apply to your TY2026 return.

---

Who Must File an Income Tax Return?

You are required to file if any of the following apply:

Condition	File?
Annual income exceeds Rs. 600,000	Yes
NTN holder (registered taxpayer)	Yes
Own property, vehicle, or foreign assets	Yes
Receive a salary with WHT deducted	Yes (to claim refund/comply)
Have business income of any amount	Yes
Director of any company	Yes
Received foreign remittances > Rs. 1M in year	Yes

Note: Even if your income is below the taxable threshold (Rs. 600,000), filing a return and staying on the ATL saves you significant money — filer vs non-filer rates matter on bank transactions, property deals, car registration, and more.

---

FY 2025-26 Tax Slabs (What Applies to TY2026 Return)

These are the rates that apply to income earned between July 1, 2025 and June 30, 2026:

Salaried Individuals:

Annual Income (PKR)	Tax Rate
Up to Rs. 600,000	0%
Rs. 600,001 – Rs. 1,200,000	5% on excess over Rs. 600,000
Rs. 1,200,001 – Rs. 2,200,000	Rs. 30,000 + 15% on excess over Rs. 1,200,000
Rs. 2,200,001 – Rs. 3,200,000	Rs. 180,000 + 25% on excess over Rs. 2,200,000
Rs. 3,200,001 – Rs. 4,100,000	Rs. 430,000 + 30% on excess over Rs. 3,200,000
Above Rs. 4,100,000	Rs. 700,000 + 35% on excess over Rs. 4,100,000
Above Rs. 10,000,000	Above rates + 9% surcharge on total tax

---

Step 1: Gather Your Documents

Before logging into IRIS, collect:

For Salaried Employees:

• Salary certificate / annual income certificate from employer (Form 16 equivalent)
• Bank statements for full year (July 2025 – June 2026)
• Any other income sources (rent, freelance, dividends)
• CNIC

For Business Individuals / Self-Employed:

• Business income records (sales, expenses, profit & loss)
• Bank statements (business + personal)
• Any withholding tax certificates (WHT deducted at source)
• Asset values (property, vehicles, investments as of June 30, 2026)

For All Filers:

• List of assets owned: property (DC rate + market value), vehicles, bank balances, stocks, gold
• List of liabilities: home loan balance, personal loans outstanding
• Foreign assets if any (Roshan Digital Account balances, foreign property, foreign accounts)
• Zakat deducted from bank (if applicable — reduces tax)

---

Step 2: Log into IRIS

1. Go to iris.fbr.gov.pk
2. Enter your CNIC number as your login (this is your NTN automatically)
3. Enter your password (set when you first registered)
4. If you have forgotten your password: click “Forgot Password” and follow SMS/email verification

First time? Register:

1. Click “Registration for Unregistered Person”
2. Fill in your CNIC, personal details, nature of income (salaried/business)
3. Receive activation email/SMS
4. Complete registration — your CNIC becomes your NTN automatically

---

Step 3: Open the Income Tax Return Form

1. After login, click “Declaration” in the top menu
2. Select “Income Tax Return”
3. Choose year: 2026 (this covers July 2025 – June 2026)
4. Select your return type: Normal (most people)
5. The form will auto-populate with data already available to FBR (bank interest, withholding taxes, salary if employer filed)

---

Step 4: Fill in Income Details

For Salaried Employees:

• Head: “Income from Salary”
• Enter gross salary, perquisites, employer contributions
• Taxable salary = Gross – Exempt allowances
• Your employer’s annual certificate shows these figures

For Business Income:

• Head: “Income from Business”
• Enter turnover/gross receipts
• Deduct allowable expenses (actual, documented)
• Enter net profit

Other Income Sources:

• Rental income: enter gross rent received
• Capital gains (property sold): enter gain and holding period
• Dividend income: enter amounts (usually already taxed at source)
• Bank interest: often auto-populated by FBR from bank data

---

Step 5: Fill in the Wealth Statement

The Wealth Reconciliation Statement is required for all filers. It reconciles:

Opening net assets (June 30, 2025)
+ Income earned in TY2026
− Tax paid
− Personal consumption (estimated living expenses)
= Closing net assets (June 30, 2026)

Assets to declare (as of June 30, 2026):

• Immovable property: at DC rate (official government valuation)
• Vehicles: at registered value
• Bank deposits: actual balance
• Cash in hand: estimated
• Stocks/mutual funds: market value
• Gold/jewelry: market value
• Business capital: book value

Why this matters: FBR cross-checks your wealth growth against declared income. If your assets grew by Rs. 2 crore but you declared income of Rs. 500,000, you will receive notices asking you to explain the difference.

---

Step 6: Claim Tax Credits and Deductions

Reduce your tax by claiming:

Credit/Deduction	Details
Zakat deducted	Deductible if deducted by bank at source under CZ Act
Medical allowance	Up to Rs. 10% of basic salary or Rs. 144,000 (lower)
Education expense credit	5% credit on tuition paid to approved institutions
Senior citizen (60+)	Reduced tax
Full-time teacher/researcher	25% tax reduction
Donations to approved NPOs	Eligible for credit up to 30% of taxable income

---

Step 7: Calculate and Pay Tax Due

If your employer has been deducting the correct WHT all year, your tax liability should be minimal or zero. If there is a shortfall:

1. In IRIS, calculate tax payable under “Tax Computation”
2. If payment required: create a Payment Slip ID (PSID) in IRIS
3. Pay at any NBP branch, via online banking (1-Link), or Jazz Cash / EasyPaisa using the PSID
4. Payment receipt auto-reflects in IRIS within 24 hours

If you are owed a refund: File your return and submit a refund application through IRIS. Refunds typically take 3–6 months to process.

---

Step 8: Submit the Return

1. Review all entries carefully
2. Click “Submit” in IRIS
3. You will receive a confirmation with an Acknowledgement Receipt Number
4. Download and save this acknowledgement — it is your legal proof of filing

---

Filing Deadline and Penalties

Event	Date
Tax Year 2026 starts	July 1, 2025
Tax Year 2026 ends	June 30, 2026
Filing deadline	September 30, 2026
Extension (if applied for)	Typically up to December 31, 2026

Penalties for late filing:

• Rs. 1,000 per day of delay (under Section 182 of Income Tax Ordinance)
• Removal from ATL — costs you significantly more in withholding taxes on all transactions
• Higher penalty if tax is also unpaid

---

Filer vs Non-Filer: Why It Matters

The ATL (Active Taxpayer List) is published every Sunday at atl.fbr.gov.pk. You stay on it by filing your return before the deadline.

Being a filer vs non-filer affects:

Transaction	Filer Rate	Non-Filer Rate
Bank profit on deposits	15%	30%
Vehicle registration (new)	1–2%	4–6%
Property buyer WHT (Sec 236K)	1.5%	Higher
Property seller WHT (Sec 236C)	2.75%	Higher
Cash withdrawal > Rs. 50,000/day	0.6%	0.6%

---

Common Mistakes to Avoid

1. Under-declaring assets — FBR has access to property records, vehicle registrations, and bank data. Unexplained asset accumulation triggers audits
2. Not including all income — freelance earnings, rent, interest must all be declared
3. Wrong income head — salaried income and business income are taxed differently
4. Skipping the wealth statement — this is compulsory, not optional
5. Waiting until September 29 — IRIS sometimes slows down at peak filing time; file by mid-September to be safe

---

Frequently Asked Questions

Do I have to file if my employer deducted the right tax?

Yes. Withholding tax by your employer does not substitute for filing a return. You must still file to maintain ATL status and legally declare your income and assets.

Can I file a return after the September 30 deadline?

Yes — late filing is allowed with a penalty of Rs. 1,000/day. But you will be removed from the ATL until your return is filed, accepted, and the list is updated.

I have never filed before. Where do I start?

Register at iris.fbr.gov.pk using your CNIC. Your CNIC automatically becomes your NTN. Then follow Steps 3–8 above.

What if I earn only from salary and have no other assets?

File your return through IRIS with your employer’s salary certificate. The process takes under 30 minutes for straightforward salaried returns.

---

This guide is for educational purposes. For complex tax situations (foreign assets, large businesses, audit notices), consult a qualified tax advisor or FCA. FBR helpline: 051-111-772-772.