- Deadline for TY2026 income tax return filing (July 2025 – June 2026) is 30 September 2026
- All persons with income above Rs. 600,000, business owners, and NTN holders must file
- Required documents: CNIC, salary certificate or Form 12, bank statements, WHT certificates, property details
- Filing is done on FBR IRIS (iris.fbr.gov.pk) — no paper forms required
- A wealth statement preparation must accompany every return, even if income is below taxable threshold
Filing an income tax return in Pakistan for Tax Year 2026 (1 July 2025 to 30 June 2026) is compulsory for every person with income above Rs. 600,000, every registered business owner, every NTN holder, and every person appearing in FBR's database as a transaction participant (property buyer/seller, vehicle registrant, or bank account holder with significant credits). This step-by-step guide walks you through the complete process — from gathering documents to submitting the final return and verifying ATL status.
Who Must File a Tax Return for TY2026
Under Section 114 of the Income Tax Ordinance 2001, the following persons must file an income tax return for TY2026:
- Every person whose income exceeds Rs. 600,000 (the basic exemption threshold for individuals TY2026)
- Every person registered with FBR (NTN holder), regardless of income level
- Every company (regardless of profit or loss)
- Every AOP (AOP tax return) and business
- Persons appearing in the prescribed transactions list (property purchase, vehicle over 1000cc, club membership, foreign travel)
- Persons in receipt of a Section 114 notice from FBR
Documents Required for TY2026 Return Filing
| Taxpayer Type | Required Documents |
|---|---|
| Salaried Employee | CNIC, salary certificate or Form 12 from employer, bank statements, any rental income records, investment/savings certificates |
| Freelancer / IT Exporter | CNIC, Payoneer/Wise annual transaction report, bank statements (all accounts), foreign currency account credits |
| Business Owner / AOP | CNIC/NTN, purchase and sale records, bank statements, WHT certificates from clients, expense invoices, stock/inventory records |
| Property Owner | CNIC, property documents (deed/fard), rental agreement, utility bills, any property sale/purchase documents for TY2026 |
| Overseas Pakistani | NICOP, foreign bank statements, remittance records, Pakistan asset documents, Roshan Digital Account details |
Step-by-Step Return Filing on IRIS
- Log in to IRIS: Go to iris.fbr.gov.pk and enter your CNIC (or NTN) and password. If you do not have an IRIS account, complete NTN registration first
- Select Tax Year: Click "Income Tax Return" in the left menu, then select "TY2026" (July 2025 – June 2026)
- Select Return Type: Choose the correct form — Form A (individual), Form B (AOP), Form C (company), or separate forms for specific taxpayer categories
- Income Entries: Fill in all income sources — salary under "Income from Salary" (Section 12), business profit under "Income from Business" (Section 18), rental income under "Income from Property" (Section 15), and foreign income in the appropriate section
- WHT Credits: Enter all WHT deducted by employers, banks, and clients. IRIS auto-populates some WHT from CPR (Central Payment Register) — verify these match your WHT certificates
- Deductions and Exemptions: Claim eligible deductions — medical allowance exemption (25% of salary, up to Rs. 1.2 million), charitable donations under Section 61, education expenses, and tax credits for life insurance premiums under Section 62
- Wealth Statement: Declare all assets and liabilities as of 30 June 2026 — bank balances, property (Federal Board of Revenue valuation), vehicles, investments, and all business assets. Reconcile opening wealth + income + gifts – expenditure = closing wealth
- Tax Payable Calculation: IRIS calculates the tax payable automatically based on entries. Review the tax computation for TY2026 slabs and ensure it matches your own calculation
- Pay any balance tax: If tax payable exceeds WHT credits, generate a PSID for the balance tax and pay at your bank before submitting the return
- Submit the Return: After all entries are verified, click "Submit Return." Download and save the filed return and acknowledgment receipt
Income Tax Slabs for Individuals TY2026
| Income Range (Annual) | Tax Rate |
|---|---|
| Up to Rs. 600,000 | 0% (exempt) |
| Rs. 600,001 – Rs. 1,200,000 | 2.5% of amount above Rs. 600,000 |
| Rs. 1,200,001 – Rs. 2,400,000 | Rs. 15,000 + 12.5% above Rs. 1,200,000 |
| Rs. 2,400,001 – Rs. 3,600,000 | Rs. 165,000 + 22.5% above Rs. 2,400,000 |
| Rs. 3,600,001 – Rs. 6,000,000 | Rs. 435,000 + 27.5% above Rs. 3,600,000 |
| Above Rs. 6,000,000 | Rs. 1,095,000 + 35% above Rs. 6,000,000 |
Wealth Statement — Why It Matters
The wealth statement is the most scrutinized section of any return. FBR uses it to identify unexplained income accumulation under Section 111. Every asset you own as of 30 June 2026 must be declared:
- Bank account balances (all accounts, including foreign currency)
- Property (at FBR valuation table rate or DC rate, whichever is higher)
- Vehicles (market value or book value)
- Business capital and stock in trade
- Investments — shares, mutual funds, prize bonds, savings certificates, NSC
- Cash in hand (above Rs. 100,000)
- All liabilities — mortgages, loans, credit card balances
Opening wealth (30 June 2025) + Total income declared in TY2026 + Gifts received – Personal expenditure – Taxes paid = Closing wealth (30 June 2026)
If closing wealth declared is significantly higher than this formula produces, FBR may question the gap as Section 111 unexplained income. Ensure your wealth statement and income entries are consistent.
Need help filing your TY2026 income tax return?
Kamboh Associates prepares and files income tax returns for salaried employees, freelancers, and businesses across Pakistan. Same-day service available.
WhatsApp: 0328-4675162Common Mistakes to Avoid When Filing Your Return
Even experienced filers make errors that trigger FBR notices or result in underpayment. Knowing the most common mistakes in advance saves you time, money, and the stress of dealing with discrepancy letters.
- Declaring salary income only and forgetting bank profit WHT certificates: Bank profit earned in savings accounts is a separate income head. The WHT deducted by the bank appears in your 9A annexure — it must be declared as income and the WHT claimed as a credit. Ignoring this creates a mismatch FBR can detect automatically.
- Wrong tax year selected: TY2026 covers 1 July 2025 to 30 June 2026. Selecting TY2025 by mistake means your return is filed for the wrong period. Always double-check the tax year on the IRIS return form before entering any figures.
- Mismatch between declared income and employer WHT certificate: IRIS pre-populates salary WHT from the employer's monthly statements filed with FBR. If your manually entered salary figure does not match what your employer reported, FBR flags the discrepancy. Request your employer's Form 12 or salary certificate and reconcile figures before submission.
- Forgetting to reconcile the wealth statement with income: A common audit trigger is a closing wealth figure that cannot be mathematically explained by opening wealth plus declared income minus expenditure. Run the reconciliation formula before submitting.
- Submitting without downloading the acknowledgment receipt: Many filers click submit and close the browser. The IRIS acknowledgment (filed return receipt) is your legal proof of filing. Download it immediately from Registration > Submitted Returns and save it permanently.
After You File — What Happens Next
Understanding what happens after you click submit helps you confirm your return was accepted and your ATL status is updated correctly.
FBR's IRIS system typically processes a submitted individual return within 48 to 72 hours for standard cases. During peak filing season (August–September), processing can take slightly longer. You do not need to do anything during this period — the return is already in FBR's system from the moment you submit.
To download your acknowledgment, log back into IRIS and navigate to Registration > Drafts or Submitted Returns. Your filed return and the system-generated acknowledgment receipt (sometimes called the "filing receipt") will appear there. Save this document — you may need it for bank account verification, visa applications, or in response to any future FBR inquiry.
Your Active Taxpayer List (ATL) status updates every Monday. After filing, check the FBR ATL verification portal (atl.fbr.gov.pk) the following Monday to confirm your name appears on the list. ATL status is important because it determines whether you pay filer or non-filer rates on property transactions, vehicle registration, and banking withholding taxes.
If IRIS shows your return as "pending" for more than 7 business days without moving to "accepted" status, contact FBR's helpline (051-111-772-772) or visit a Regional Tax Office. A qualified tax consultant can also submit an inquiry on your behalf if the status remains stuck.
Frequently Asked Questions
What is the deadline for filing TY2026 income tax return?
The standard deadline for individual income tax returns for TY2026 (July 2025 – June 2026) is 30 September 2026. Business taxpayers and companies may have different deadlines. FBR sometimes grants general extensions — check the FBR website or IRIS notifications for any deadline extensions for TY2026. Filing after the deadline attracts a penalty under Section 182.
Can I file my return if I don't have all documents ready?
You can file a return with estimates and later file a revised return under Section 114(6) within 5 years of the original due date. However, it is better to have accurate figures before filing. The most critical document is your employer's salary certificate or Form 12 — request it well before September to avoid last-minute delays.
I forgot to declare a bank account in my previous return — what should I do?
File a revised return for the relevant tax year under Section 114(6) of the Income Tax Ordinance 2001. You have up to 5 years from the original filing due date to revise. Include the omitted bank account balance in your wealth statement and any interest income in the income section. Proactively correcting errors significantly reduces penalty risk compared to waiting for an FBR notice defense.
What happens if my wealth statement shows more assets than my income can explain?
FBR may issue a Section 111 notice for the unexplained difference. The response strategy is to provide documentation of the income source for each asset — inheritance documents, gift letters, loan agreements, prior year savings. If you have legitimate sources but didn't declare them, consider filing revised returns for prior years to reconcile the position before the notice arrives.
Do I need to declare foreign bank accounts in my Pakistan tax return?
Yes. Pakistani residents must declare all foreign bank accounts and foreign assets in their wealth statement. Pakistan is a signatory to CRS (Common Reporting Standard) and receives foreign financial account information from over 100 countries. Foreign accounts not declared in the wealth statement that appear in CRS data received by FBR may trigger Section 111 notices for unexplained foreign assets.
Can I file the return myself or do I need a consultant?
Simple salaried employee returns can be self-filed on IRIS with moderate effort — the platform guides you through sections. Complex cases (multiple income sources, business income, property transactions, foreign income, FBR notices) are better handled by a qualified consultant to avoid errors that trigger notices. Consultant fees for a simple return (Rs. 2,500–5,000) are typically less than the cost of resolving a notice caused by an error.