What is Income Tax Return?

Income tax return is a summarized form issued by FBR every year. The form is used to fill all the information relating to

  • Income earned during any tax year
  • Expenses incurred to earn that income during the year, including personal expenses.
  • Taxes paid / deducted during the year.
  • Tax to be paid. (if any)

Who is required to file Income Tax Return?

  • Every Company
  • Every person other company whose annual income exceeds Rs. 400,000 [ Business individuals are required to file return if annual income exceeds Rs. 300,000]
  • Any non-profit organization or welfare institution approved by tax authorities
  • Any person other than above who
    • Has been charged to tax in any preceding two years
    • Claims a loss carry forward
    • Owns immovable property a land area of 250 sq. yards or more
    • Owns flat in areas of municipal limits
    • Owns immovable property of 500 sq. yards or flat having covered area of 2000 sq. feet in a rating area.
    • Owns a motor vehicle having engine capacity above 1000cc
    • Has NTN
    • Is the holder of commercial or industrial connection of electricity where the amount of annual bill exceeds Rs 500,000
    • Is registered with
      • any chamber of commerce and industry or any trade or business association or
      • any market committee or professional body
      • Pakistan Engineering Council
      • Pakistan Medical and Dental Council
      • Pakistan Bar Council or Provincial Bar Council
      • Institute of Chartered Accountants of Pakistan [ICAP]
      • Institute of Cost and Management Accountants of Pakistan [ICMAP]


How Income Tax Return is submitted?

The form can be submitted manually, by visiting FBR offices. Also electronically using FBR electronic portal [In order to use electronic portal ID is required to be obtained].

However in following cases electronic filling is mandatory

  1. Salaried individual [Where annual income is Rs. 500,000/= or more for Tax Year 2015 every salaried Individual was required to file electronically.
  2. Business Individuals registered with sales tax department.
  3. All Companies
  4. Refund application [Income Tax Return is required to be filed electronic as well]

It is always better to file electronically for many practical reasons

When Income Tax Return is to be submitted?

Date of filling Income Tax returns are

  1. 31 August [For Salaried Individual – Electronic filling i.e. Income Rs. 500,000/- or more].
  2. 30 September [For all Individuals, AoP and Company having year end between 1 July to 31 Dec].
  3. 31 December [For companies having year end between 1 Jan to 30 Jun].

Following is the video tutorial.