## 🇵🇰 Complete Guide to Filing Your First Tax Return in Pakistan (FBR IRIS Portal 2025)
### Introduction: Why You Cannot Afford to Skip Your FBR Tax Return
In Pakistan, filing your annual Income Tax Return is often viewed as a daunting and complex chore. For first-time filers—especially salaried individuals and freelancers—the FBR’s IRIS portal can feel like a maze.
However, becoming a tax filer is no longer optional; it’s essential for your financial life. If you don’t file, you are categorized as a non-filer, instantly incurring up to a 100% higher tax rate on every major financial transaction, including bank withdrawals, vehicle purchases, and property transfers.
This comprehensive, step-by-step guide is your roadmap to successfully navigating the FBR IRIS portal for the Tax Year 2025 (July 1, 2024, to June 30, 2025). Follow this guide to secure your status as an Active Taxpayer (ATL) and save thousands of rupees in unjust penalties.
1. The Essential Pre-Filing Checklist: Documents You Must Gather
Filing your tax return is 90% preparation and 10% execution. Gather these documents before logging into the IRIS portal to ensure a smooth process.
| Document Required | Why You Need It | For Which IRIS Section? |
|---|---|---|
| CNIC (Compulsory) | Your 13-digit Computerized National Identity Card is your National Tax Number (NTN). | Login & Registration |
| Salary/Tax Deduction Certificate | Provided by your employer, this shows your Gross Salary and the exact tax deducted (Withholding Tax – WHT) under Section 149. | Employment Tab |
| Bank Statements | Statement from July 1, 2024, to June 30, 2025. Needed to declare bank profits/interest and reconcile wealth. | Wealth Statement |
| Withholding Tax Certificates | WHT deducted on mobile bills, internet, vehicle token tax, and on cash withdrawals/bank profits. FBR auto-populates some of this data, but verification is crucial. | Withholding Data Tab |
| Details of Assets & Liabilities | Property (plot/house), vehicles, investments (stocks, mutual funds), cash, gold, and loans/advances. You must declare both opening and closing balances. | Wealth Statement |
| Utility Bills (Annual Sum) | Needed to justify household expenditures in your wealth statement. | Personal Expenses Tab |
2. Step-by-Step: The FBR IRIS Portal Walkthrough
The entire process is completed online via the FBR’s IRIS portal (iris.fbr.gov.pk).
Step 1: NTN Registration (For New Users Only)
- If you have never filed a return or registered, you can register online through the Iris Portal.
- For individuals, the 13-digit Computerized National Identity Card (CNIC) will be used as the NTN or Registration Number.
- Online registration for individuals requires a cell phone with a SIM registered against their own CNIC and a personal email address.
- Upon successful registration, you will get credentials to log into Iris.
Step 2: Logging In and Initiating the Return
- Go to the FBR IRIS Portal.
- Log in using your CNIC (as Registration No.) and your assigned Password.
- On the dashboard, click Declaration and then Income Tax Return.
- Select Returns / Statements (Original) and then Normal Return (Ind/Aop/Coy).
- Enter the Tax Year(e.g., 2025) and select the period “01-JUL-2024 – 30-JUN-2025”. Click Continue to open the form 114(1).
Step 3: Completing the Required Tabs (The Core Data Entry)
The form is divided into sections. As a salaried individual, you will primarily use form 114(I), which is provided to facilitate those whose income is mostly from salary.
| IRIS Tab Name | What to Enter (Salaried Person) | Key Action |
|---|---|---|
| Employment | Enter your Employer’s NTN, Gross Salary, and the amount of Tax Deducted (WHT) from your salary. Verify these figures with your salary certificate. | Must be accurate to reconcile with employer’s records. |
| Tax Paid | This tab shows the total WHT deducted. Always cross-check the system’s data with your certificates for accuracy. | Ensure all paid taxes are credited to you. |
| Deductions & Tax Credits | Declare any amounts deducted like Zakat, or tax credits claimed for Voluntary Pension Schemes or Life Insurance. | Used to reduce your overall tax liability. |
| Tax Chargeable/Payment | The system automatically calculates your Total Tax Liability based on your declared income and tax paid. | Final Review of the tax due or refundable. |
3. The Crucial Step: Filing the Wealth Statement
You must complete the Wealth Statement (Statement of Assets and Liabilities) along with the Return of Income form.
Reconciliation Formula
The system requires that the current year’s wealth change must reconcile with your income exceeding/falling short of your expenses to submit successfully.
$$\text{Closing Wealth} – \text{Opening Wealth} = \text{Total Declared Income} – \text{Total Declared Expenses}$$
Wealth Statement Tabs to Fill:
- Personal Assets: Detail all assets held on June 30, 2025 (e.g., Cash, Bank Balance, Vehicles, Property).
- Personal Liabilities: Declare all loans or mortgages you owe.
- Personal Expenses: Enter all household expenses for the tax year (July 1, 2024 – June 30, 2025), including utilities, travel, and rent.
Pro Tip: Ensure everything is accurate, complete, and properly labeled before uploading to avoid rejection.
4. Final Validation and Submission
Once all tabs, including the Wealth Statement, are complete:
- Click the Validate button to check for missing or incorrect fields.
- Click Calculate to compute the final tax due or refundable amount.
- Go to the Verification tab and enter your 4-digit PIN.
- Click Submit. The forms should move from the Draft folder to the Completed Tasks folder.
Congratulations! You have successfully filed your Tax Return 2025.
Conclusion: Securing Your Active Taxpayer Status (ATL)
By filing your return by the deadline (which is typically September 30th for individuals), you get listed on the Active Taxpayer List (ATL). Being an ATL member is crucial for avoiding significantly higher withholding tax rates on transactions.
Don’t let the fear of bureaucracy cost you money. Use this guide to take control of your financial status and secure your economic benefits in Pakistan.