Income Tax Return Filing in Karachi 2026

Q: I trade on the Pakistan Stock Exchange from Karachi — how do I declare PSX income?

In IRIS, declare dividend income under 'Income from Dividends' (Section 5) and enter the WHT certificates from your CDC or broker. Capital gains on shares held less than 12 months go under Section 37A at 15%. Shares held more than 12 months by filers attract 0% CGT. Get your annual transaction statement from your CDC sub-account or broker for the year ending 30 June 2026 and use it to calculate gains and losses.

By Aitsaam Ali — Tax Consultant | NTN • SECP • Sales Tax Specialist — FBR Active Filer

TL;DR — Karachi Tax Filing Quick Guide

All Karachi residents — Clifton, DHA, Saddar, Gulshan, SITE, Korangi, North Karachi — file income tax on FBR IRIS online
Deadline for TY2026 individual income tax return filing: 30 September 2026
Karachi FBR offices: RTO-I (Civic Centre), RTO-II (Kausar Garden), LTU (Moulvi Tamizuddin Khan Road)
Karachi's export-driven economy means WHT on export remittances and shipping income are common issues
Kamboh Associates serves all Karachi areas via WhatsApp — NTN same day, returns filed within hours

Karachi is Pakistan's largest city, financial capital, and primary port — home to over 16 million people across dozens of distinct neighborhoods, from the high-rise commercial towers of I.I. Chundrigar Road to the fishing communities of Keamari, from the industrial estates of SITE and Korangi to the upscale residential enclaves of Clifton and DHA. Karachi generates an outsized share of Pakistan's tax revenue, and its taxpayers face some of the most complex tax situations in the country — export businesses, shipping companies, stock market investors, and a massive informal economy that is increasingly being brought into the tax net. This guide covers income tax filing for every area of Karachi.

All Karachi Areas — Tax Filing Guide by Neighborhood

Regardless of which part of Karachi you live or work in, your income tax return is filed online through FBR IRIS. Here is a breakdown by major Karachi area:

Karachi Area / District	Typical Taxpayer Profile	Key Tax Consideration
Clifton, Bath Island, Boat Basin	Corporate executives, HNW individuals, foreign company employees	High-value property WHT, expatriate income, perquisites
DHA Phase 1–8, Khayaban-e-Sehar	Military, defence-linked families, property investors	Property WHT (236C/K), capital gains, Section 7E deemed income
Gulshan-e-Iqbal, Gulshan-e-Hadeed	Middle-class salaried, small business owners, teachers	Salary returns, rental income declaration
North Nazimabad, Federal B Area, F.B. Area	Government employees, shopkeepers, service businesses	NTN registration, first-time filer, salary slabs
Saddar, M.A. Jinnah Road, Boulton Market	Traders, cloth merchants, electronics dealers	Business income, minimum tax Section 113, STRN
I.I. Chundrigar Road (Financial District)	Banks, brokerage firms, corporate sector	Corporate tax, PSX dividend income, advance tax
SITE (Super Industrial Trading Estate)	Manufacturers, factory owners, industrial workers	Section 153 contractor WHT, STRN, export WHT
Korangi Industrial Area	Textile mills, chemical plants, industrial SMEs	Export income, minimum tax, industrial WHT compliance
Malir, Bin Qasim, Landhi	Industrial workers, transport businesses, small traders	Transport WHT Section 234, small business NTN
Orangi Town, Baldia, Keamari	Shipping, port workers, wholesale traders	Port income, shipping WHT, import/export documentation
Lyari, Garden, New Karachi	Small businesses, shopkeepers, first-time filers	Basic NTN registration, filer status benefits
Bahria Town Karachi, Gulistan-e-Johar	Professionals, property investors, salaried upper-middle	wealth statement preparation, property declaration, Section 7E

FBR Tax Offices Serving Karachi

Karachi's massive tax base is served by multiple FBR units:

RTO-I Karachi: Civic Centre, Karachi. Serves central Karachi, Saddar, Clifton, and surrounding zones
RTO-II Karachi: Kausar Garden. Serves eastern Karachi, Gulshan, North Nazimabad, Gulistan-e-Johar, and Korangi
LTU Karachi (Large Taxpayer Unit): Moulvi Tamizuddin Khan Road. Serves Pakistan's largest companies, banks, and financial institutions
CRTO Karachi: Corporate returns and company tax matters
Customs and Port: Port Qasim Authority and Karachi Port Trust area have dedicated FBR customs and port tax officers

For all routine individual income tax return filings, no office visit is required. FBR IRIS handles everything online.

Step-by-Step Income Tax Return Filing — Karachi Process

Register NTN: Visit iris.fbr.gov.pk and click "Registration for Unregistered Person." Enter your CNIC, Karachi mobile number, and email. NTN is issued same day. Karachi-based freelancers, traders, and professionals can register with CNIC alone — no additional business registration needed for individual NTN
Collect your income documents: Employer Form-12 (salary certificate with WHT deducted), bank statements from all accounts (HBL, MCB, UBL, Meezan, Bank Al-Habib, etc.), WHT certificates from clients, stock account statements if you trade on PSX
Open IRIS and start return: Income Tax → Returns → TY2026. Select Form A for individuals. Declare salary under Section 12, business income under Section 18, property rental under Section 15, dividend income under Section 5, capital gains under Section 37A
Wealth Statement: Declare all Karachi property at FBR valuation table or DC rate, bank balances (closing balances on 30 June 2026), vehicles, stock portfolio, and business investment. Opening wealth (prior year closing) auto-carries forward
Pay balance tax: If net tax exceeds WHT credits, generate PSID (Payment Slip ID) through IRIS and pay at any Karachi bank branch or via mobile banking. Karachi taxpayers also have access to FBR's 24-hour online payment via 1Bill and other aggregators
Submit and verify ATL: After submission, download acknowledgment receipt. Check atl.fbr.gov.pk within 48 hours to confirm filer status

Karachi Stock Market — Tax on PSX Income

Karachi is home to the Pakistan Stock Exchange (PSX) and a large community of individual and institutional investors. PSX-related tax issues are common for Karachi taxpayers:

PSX income tax treatment (TY2026):
Dividend income: 15% WHT deducted at source (Section 150) — adjustable. Filers pay 15%, non-filers 30%
Capital gains on listed securities: Section 37A — 15% for filers on shares held less than 12 months; 0% after 12 months for filers
Mutual fund income: WHT at 15% on profit — adjustable in return
PSX brokerage WHT: deducted at 0.02% of transaction value — adjustable
All PSX income must be declared in the income tax return even though WHT was already deducted — the return is still required for ATL status

Karachi Export Business — WHT on Exports

Karachi's SITE and Korangi industrial zones house Pakistan's major export industries. Export-oriented taxpayers face specific WHT obligations:

Section 154 WHT on export proceeds: 1% (filer) deducted by banks at the time of realization of export proceeds. This is a final tax for exporters who opt for the simplified export return
IT services exporters (Section 153): 0.25% WHT on export remittances received through banking channels
Shipping income: Section 7AA — shipping companies (owners/charterers) pay WHT at 8% of freight income earned in Pakistan. Karachi Port-based shipping agents must comply with this provision
Export rebates and SRB (Sindh Revenue Board) sales tax exemptions for exporters are separate from FBR income tax obligations

Income tax filing for any Karachi area — same day

Kamboh Associates serves Clifton, DHA, Gulshan, Saddar, SITE, Korangi, North Nazimabad, and all other Karachi areas via WhatsApp. NTN registration and complete return filing — share your documents and we handle the rest.

WhatsApp: 0328-4675162

Karachi Importers and Exporters — WHT and Tax Compliance

Karachi handles the vast majority of Pakistan's import-export trade. Importers and exporters face a unique set of withholding tax compliance obligations that are often misunderstood:

Importers: Under Section 148, advance tax is collected at the import stage by the Customs authority at port. This WHT rate varies by importer type: commercial importers pay advance tax at prescribed rates (typically 5.5% for filers, 8% for non-filers on the import value). Industrial importers importing raw materials for their own use pay at lower prescribed rates. This advance tax is adjustable against final income tax liability in the annual return — it is not a final tax for most business importers. Karachi's Keamari customs clearing agents and CHAs handle these collections daily.

Exporters: Under Section 154, WHT is deducted at 1% on export proceeds at the banking stage when foreign exchange is credited. For most Karachi manufacturers and traders, this 1% WHT is a final tax — they do not pay additional income tax on export income under the normal tax slab. However, Section 154A provides that exporters can opt out of the final tax regime and pay normal tax if their effective rate would be lower. Karachi textile exporters with high expenses sometimes find normal regime beneficial.

SRB and FBR Dual Compliance for Karachi Service Businesses

Karachi is in Sindh province, which means service businesses in Karachi face dual taxation obligations: FBR income tax and Sindh Revenue Board (SRB) sales tax on services. Understanding which authority handles what is critical:

FBR income tax: Applies to all Karachi businesses on net income/profit basis. Covers all types of income — trading, service, manufacturing, rental.
SRB sales tax on services: 13% Sindh Sales Tax applies to services provided in Karachi — consultancy, IT services, restaurants, hotels, advertising, insurance, freight forwarding, clearing agents, construction contractors, and more. SRB registration is separate from FBR NTN. Monthly SRB returns due by 15th of following month on SRB's eFiling portal.
Dual registration businesses: A Karachi IT company providing services may need: FBR NTN (income tax), FBR STRN (sales tax if turnover above Rs. 10 million), and SRB registration (Sindh Sales Tax on IT services). Each has separate monthly/annual filing obligations.

Karachi businesses often get notices from one authority for non-filing while being compliant with the other. Kamboh Associates handles both FBR and SRB compliance for Karachi clients — WhatsApp for a compliance review.

Karachi Rental Income — Commercial and Residential Tax

Karachi's property market generates substantial rental income for landlords across Clifton, DHA, Gulshan, and commercial areas like Tariq Road, Saddar, and I.I. Chundrigar Road. Rental income is taxed under Section 15 of the Income Tax Ordinance 2001:

Residential rental income: taxed under normal income tax slabs as part of total income for individual landlords
Commercial rental income where tenant is a company or registered business: the tenant must deduct WHT at 15% on gross rent under Section 155 and deposit with FBR by the 15th of the following month
Landlords who receive WHT-deducted rent: declare gross rent in annual return, claim WHT as credit — if over-deducted, file for refund
Individual Karachi landlords with rental income below taxable threshold: still required to file annual return declaring rental income
DHA commercial plots let to shops or offices: both Section 155 WHT (by business tenants) and Section 236A (advance tax on property lease) may apply

Karachi landlords with multiple properties must reconcile each property's rental income in the wealth statement and income return. Undeclared rental properties flagged by Karachi's KBCA or local council records trigger Section 111 notices.

Frequently Asked Questions

I live in Clifton Karachi — which FBR RTO handles my income tax?

Clifton and most of central Karachi falls under RTO-I Karachi (Civic Centre). Your specific tax circle within RTO-I is visible in your IRIS profile under taxpayer details. For day-to-day filing, you will never need to visit RTO-I — all returns, payments, and routine matters are handled online via IRIS. You only need to visit the RTO if you receive a notice requiring a physical hearing.

I trade on the Pakistan Stock Exchange from Karachi — how do I declare PSX income?

In IRIS, declare dividend income under "Income from Dividends" (Section 5) and enter the WHT certificates from your CDC or broker. Capital gains on shares held less than 12 months go under Section 37A at 15%. Shares held more than 12 months by filers attract 0% CGT. Get your annual transaction statement from your CDC sub-account or broker for the year ending 30 June 2026 and use it to calculate gains and losses.

I run a garment export business in SITE Karachi — do I need to file an income tax return?

Yes, even though your bank deducts 1% WHT (Section 154) on export proceeds at source, you must still file an annual return. Export manufacturers can opt for the simplified final tax regime where the 1% WHT is the final tax on export income — this is often more favorable than paying tax at standard rates. Your NTN, STRN, and export invoices are needed for the return. Kamboh Associates handles export business returns for SITE and Korangi businesses.

I have a DHA Karachi plot I want to sell — what taxes apply?

On selling your DHA Karachi plot: Section 236C WHT at 1% (filer) or 2% (non-filer) is collected by the registrar at deed registration. The buyer also pays Section 236K WHT at 1% (filer) or 2% (non-filer). If you held the plot for more than 4 years, capital gains tax is 0% for filers. If less than 4 years, CGT at applicable rates applies. Section 7E deemed rental income also applies annually if the plot is not your principal residence — ensure it is declared in your wealth statement.

What is the Sindh Professional Tax and how does it relate to FBR income tax?

Sindh Professional Tax (SPT) is a provincial levy collected by the Sindh Revenue Board (SRB), separate from FBR's federal income tax. Professionals working in Karachi (doctors, lawyers, accountants, engineers) pay Sindh Professional Tax annually. SPT paid is deductible as a business expense in your FBR income tax return. However, SPT registration and payment is done through SRB (srb.gos.pk), not FBR IRIS. Both obligations are independent.

Can I file my Karachi income tax return from outside Pakistan?

Yes. FBR IRIS is accessible from anywhere in the world. Many Karachiites working abroad (UAE, UK, Saudi Arabia, Canada) file their Pakistan income tax returns online from overseas. If the IRIS portal is slow or inaccessible from your country, use a VPN with a Pakistan server. Alternatively, authorize a Karachi tax consultant like Kamboh Associates to file on your behalf — share documents via WhatsApp and the return is filed same day.