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Registering a 1000cc motor vehicle costs Filers just 1% in tax, while Non-Filers are penalized with a 3% tax. • Winning a prize bond or crossword puzzle means you lose 15% to taxes as an Active Filer, but a massive 30% if you are a Non-Filer. • Importing pharmaceutical products carries an 8% tax for Non-Filers, which is exactly double the 4% rate applied to Active Taxpayers. • Capital gains arising on the disposal of certain debt securities are taxed at 15% for Filers, but double to 30% for Non-Filers. • Providing IT and IT-enabled services costs Active Taxpayers just 4% in withholding tax, while Non-Filers must pay 8%. • Payments to electronic and print media for advertising services are taxed at just 1.5% for Active Taxpayers, compared to 3% for Non-Filers. • Pensions under 10 million rupees remain 100% tax-exempt for everyone, no matter what your filing status is. • Payments made to non-resident sportspersons incur a 15% tax if they are on the ATL, and a massive 30% if they are non-ATL. • Active Filers importing CKD kits for Electric Vehicles pay a minimal 1% tax, whereas Non-Filers pay double at 2%. • The withholding tax on banking and financial institution profits is set at 20% for those on the Active Taxpayers’ List, but jumps to 40% for those off the list. • Dividends from Real Estate Investment Trusts (REITs) and general companies cost Active Filers 15% in tax, but Non-Filers lose a massive 30%. • Importing basic goods from Part-I of the Twelfth Schedule costs Active Taxpayers just 1% in tax, while Non-Filers have to pay 2%. • Buyers of 1301cc to 1600cc cars pay a 2% advance tax if they are Filers, but Non-Filers pay exactly triple at 6%. • Purchasing a 1601cc to 1800cc vehicle will cost Non-Filers a 9% tax, which is three times the 3% rate given to Active Filers. • Buying a high-end 2501cc to 3000cc vehicle leaves Filers with a 9% tax bill, but absolutely punishes Non-Filers with a massive 27% tax rate. • If you receive dividends from Independent Power Purchasers (IPPs), Filers pay a 7.5% tax while Non-Filers surrender 15%. • Cash withdrawals by a person whose name does not appear on the Active Taxpayers’ List are hit with an automatic 0.8% advance tax. • Salaries under Rs. 600,000 are completely tax-free, maintaining a 0% rate regardless of your taxpayer status. • Registering a 2001cc to 2500cc luxury vehicle incurs a 7% tax for Active Filers, but a staggering 21% tax for Non-Filers. • Winning a raffle, lottery, or sales promotion prize costs Non-Filers a whopping 40% in tax, compared to 20% for Filers. • Commercial importers of Part-II goods face a 3.5% withholding tax if they are Filers, but the rate doubles to 7% for Non-Filers. • Companies generating rental income from immovable property pay a 15% tax if they are Active Filers, but face a 30% rate as Non-Filers. • Selling rice, cotton seed, or edible oils comes with a low 1.5% tax for Filers, but a 3% tax for Non-Filers. • Commercial importers bringing in Part-III items are hit with a 12% tax rate if they are Non-Filers, compared to only 6% for Active Filers. • The sale of petroleum products is taxed at 12% for Filers and exactly double that at 24% for Non-Filers. • Profits on debt from mutual funds deriving 50% or more income from debt carry a huge 50% tax for Non-Filers, compared to 25% for Filers. • Registering a 1000cc motor vehicle costs Filers just 1% in tax, while Non-Filers are penalized with a 3% tax. • Winning a prize bond or crossword puzzle means you lose 15% to taxes as an Active Filer, but a massive 30% if you are a Non-Filer. • Importing pharmaceutical products carries an 8% tax for Non-Filers, which is exactly double the 4% rate applied to Active Taxpayers. • Capital gains arising on the disposal of certain debt securities are taxed at 15% for Filers, but double to 30% for Non-Filers. • Providing IT and IT-enabled services costs Active Taxpayers just 4% in withholding tax, while Non-Filers must pay 8%. • Payments to electronic and print media for advertising services are taxed at just 1.5% for Active Taxpayers, compared to 3% for Non-Filers. • Pensions under 10 million rupees remain 100% tax-exempt for everyone, no matter what your filing status is. • Payments made to non-resident sportspersons incur a 15% tax if they are on the ATL, and a massive 30% if they are non-ATL. • Active Filers importing CKD kits for Electric Vehicles pay a minimal 1% tax, whereas Non-Filers pay double at 2%. • The withholding tax on banking and financial institution profits is set at 20% for those on the Active Taxpayers’ List, but jumps to 40% for those off the list. • Dividends from Real Estate Investment Trusts (REITs) and general companies cost Active Filers 15% in tax, but Non-Filers lose a massive 30%. • Importing basic goods from Part-I of the Twelfth Schedule costs Active Taxpayers just 1% in tax, while Non-Filers have to pay 2%. • Buyers of 1301cc to 1600cc cars pay a 2% advance tax if they are Filers, but Non-Filers pay exactly triple at 6%. • Purchasing a 1601cc to 1800cc vehicle will cost Non-Filers a 9% tax, which is three times the 3% rate given to Active Filers. • Buying a high-end 2501cc to 3000cc vehicle leaves Filers with a 9% tax bill, but absolutely punishes Non-Filers with a massive 27% tax rate. • If you receive dividends from Independent Power Purchasers (IPPs), Filers pay a 7.5% tax while Non-Filers surrender 15%. • Cash withdrawals by a person whose name does not appear on the Active Taxpayers’ List are hit with an automatic 0.8% advance tax. • Salaries under Rs. 600,000 are completely tax-free, maintaining a 0% rate regardless of your taxpayer status. • Registering a 2001cc to 2500cc luxury vehicle incurs a 7% tax for Active Filers, but a staggering 21% tax for Non-Filers. • Winning a raffle, lottery, or sales promotion prize costs Non-Filers a whopping 40% in tax, compared to 20% for Filers. • Commercial importers of Part-II goods face a 3.5% withholding tax if they are Filers, but the rate doubles to 7% for Non-Filers. • Companies generating rental income from immovable property pay a 15% tax if they are Active Filers, but face a 30% rate as Non-Filers. • Selling rice, cotton seed, or edible oils comes with a low 1.5% tax for Filers, but a 3% tax for Non-Filers. • Commercial importers bringing in Part-III items are hit with a 12% tax rate if they are Non-Filers, compared to only 6% for Active Filers. • The sale of petroleum products is taxed at 12% for Filers and exactly double that at 24% for Non-Filers. • Profits on debt from mutual funds deriving 50% or more income from debt carry a huge 50% tax for Non-Filers, compared to 25% for Filers. •

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Purchasing a 1601cc to 1800cc vehicle will cost Non-Filers a 9% tax, which is three times the 3% rate given to Active Filers. • Capital gains arising on the disposal of certain debt securities are taxed at 15% for Filers, but double to 30% for Non-Filers. • Profits on debt from mutual funds deriving 50% or more income from debt carry a huge 50% tax for Non-Filers, compared to 25% for Filers. • Buyers of 1301cc to 1600cc cars pay a 2% advance tax if they are Filers, but Non-Filers pay exactly triple at 6%. • Winning a raffle, lottery, or sales promotion prize costs Non-Filers a whopping 40% in tax, compared to 20% for Filers. • Providing IT and IT-enabled services costs Active Taxpayers just 4% in withholding tax, while Non-Filers must pay 8%. • Commercial importers of Part-II goods face a 3.5% withholding tax if they are Filers, but the rate doubles to 7% for Non-Filers. • Cash withdrawals by a person whose name does not appear on the Active Taxpayers’ List are hit with an automatic 0.8% advance tax. • Companies generating rental income from immovable property pay a 15% tax if they are Active Filers, but face a 30% rate as Non-Filers. • Salaries under Rs. 600,000 are completely tax-free, maintaining a 0% rate regardless of your taxpayer status. • Buying a high-end 2501cc to 3000cc vehicle leaves Filers with a 9% tax bill, but absolutely punishes Non-Filers with a massive 27% tax rate. • Importing pharmaceutical products carries an 8% tax for Non-Filers, which is exactly double the 4% rate applied to Active Taxpayers. • The withholding tax on banking and financial institution profits is set at 20% for those on the Active Taxpayers’ List, but jumps to 40% for those off the list. • Winning a prize bond or crossword puzzle means you lose 15% to taxes as an Active Filer, but a massive 30% if you are a Non-Filer. • Registering a 2001cc to 2500cc luxury vehicle incurs a 7% tax for Active Filers, but a staggering 21% tax for Non-Filers. • Registering a 1000cc motor vehicle costs Filers just 1% in tax, while Non-Filers are penalized with a 3% tax. • Selling rice, cotton seed, or edible oils comes with a low 1.5% tax for Filers, but a 3% tax for Non-Filers. • Commercial importers bringing in Part-III items are hit with a 12% tax rate if they are Non-Filers, compared to only 6% for Active Filers. • If you receive dividends from Independent Power Purchasers (IPPs), Filers pay a 7.5% tax while Non-Filers surrender 15%. • The sale of petroleum products is taxed at 12% for Filers and exactly double that at 24% for Non-Filers. • Dividends from Real Estate Investment Trusts (REITs) and general companies cost Active Filers 15% in tax, but Non-Filers lose a massive 30%. • Importing basic goods from Part-I of the Twelfth Schedule costs Active Taxpayers just 1% in tax, while Non-Filers have to pay 2%. • Payments to electronic and print media for advertising services are taxed at just 1.5% for Active Taxpayers, compared to 3% for Non-Filers. • Active Filers importing CKD kits for Electric Vehicles pay a minimal 1% tax, whereas Non-Filers pay double at 2%. • Payments made to non-resident sportspersons incur a 15% tax if they are on the ATL, and a massive 30% if they are non-ATL. • Pensions under 10 million rupees remain 100% tax-exempt for everyone, no matter what your filing status is. • Purchasing a 1601cc to 1800cc vehicle will cost Non-Filers a 9% tax, which is three times the 3% rate given to Active Filers. • Capital gains arising on the disposal of certain debt securities are taxed at 15% for Filers, but double to 30% for Non-Filers. • Profits on debt from mutual funds deriving 50% or more income from debt carry a huge 50% tax for Non-Filers, compared to 25% for Filers. • Buyers of 1301cc to 1600cc cars pay a 2% advance tax if they are Filers, but Non-Filers pay exactly triple at 6%. • Winning a raffle, lottery, or sales promotion prize costs Non-Filers a whopping 40% in tax, compared to 20% for Filers. • Providing IT and IT-enabled services costs Active Taxpayers just 4% in withholding tax, while Non-Filers must pay 8%. • Commercial importers of Part-II goods face a 3.5% withholding tax if they are Filers, but the rate doubles to 7% for Non-Filers. • Cash withdrawals by a person whose name does not appear on the Active Taxpayers’ List are hit with an automatic 0.8% advance tax. • Companies generating rental income from immovable property pay a 15% tax if they are Active Filers, but face a 30% rate as Non-Filers. • Salaries under Rs. 600,000 are completely tax-free, maintaining a 0% rate regardless of your taxpayer status. • Buying a high-end 2501cc to 3000cc vehicle leaves Filers with a 9% tax bill, but absolutely punishes Non-Filers with a massive 27% tax rate. • Importing pharmaceutical products carries an 8% tax for Non-Filers, which is exactly double the 4% rate applied to Active Taxpayers. • The withholding tax on banking and financial institution profits is set at 20% for those on the Active Taxpayers’ List, but jumps to 40% for those off the list. • Winning a prize bond or crossword puzzle means you lose 15% to taxes as an Active Filer, but a massive 30% if you are a Non-Filer. • Registering a 2001cc to 2500cc luxury vehicle incurs a 7% tax for Active Filers, but a staggering 21% tax for Non-Filers. • Registering a 1000cc motor vehicle costs Filers just 1% in tax, while Non-Filers are penalized with a 3% tax. • Selling rice, cotton seed, or edible oils comes with a low 1.5% tax for Filers, but a 3% tax for Non-Filers. • Commercial importers bringing in Part-III items are hit with a 12% tax rate if they are Non-Filers, compared to only 6% for Active Filers. • If you receive dividends from Independent Power Purchasers (IPPs), Filers pay a 7.5% tax while Non-Filers surrender 15%. • The sale of petroleum products is taxed at 12% for Filers and exactly double that at 24% for Non-Filers. • Dividends from Real Estate Investment Trusts (REITs) and general companies cost Active Filers 15% in tax, but Non-Filers lose a massive 30%. • Importing basic goods from Part-I of the Twelfth Schedule costs Active Taxpayers just 1% in tax, while Non-Filers have to pay 2%. • Payments to electronic and print media for advertising services are taxed at just 1.5% for Active Taxpayers, compared to 3% for Non-Filers. • Active Filers importing CKD kits for Electric Vehicles pay a minimal 1% tax, whereas Non-Filers pay double at 2%. • Payments made to non-resident sportspersons incur a 15% tax if they are on the ATL, and a massive 30% if they are non-ATL. • Pensions under 10 million rupees remain 100% tax-exempt for everyone, no matter what your filing status is. •

Step-by-Step Property Tax Return Filing for Rental Income in Pakistan

A complete step-by-step guide on how landlords in Pakistan can declare and file their rental income tax through FBR’s Iris portal. Learn about deductions, WHT, and common filing mistakes to avoid penalties.

If you’re a landlord in Pakistan, earning income from renting out your property is considered taxable income under the law. Filing your rental income tax through the FBR Iris portal is a legal obligation that helps you avoid penalties, audits, and potential legal complications. This comprehensive guide will walk you through the step-by-step process to file property income tax online in Pakistan using the Federal Board of Revenue’s (FBR) Iris system.

What is Property Income?

For tax purposes, income from property primarily includes:

Rent received from land or buildings.
Any non-adjustable (non-refundable) advance rent received.
Any other non-refundable payments received from a tenant in relation to the property.

Why Declare Rental Income in Pakistan?

Undisclosed property income can lead to severe consequences, including audits, significant penalties, and even legal proceedings by the FBR. Filing your return transparently ensures compliance and contributes to the national tax system. Failing to declare your property income can result in:

Hefty fines and penalties
Income tax audits by FBR
Legal proceedings under the Income Tax Ordinance

Filing your rental income tax return accurately ensures legal compliance and strengthens Pakistan’s national tax system.

The Step-by-Step Filing Process via FBR Iris Portal

The most common and efficient way to file your tax return is through the FBR’s online system, Iris. Here’s how to navigate the process for your property income:

Step 1: Log in to Your Iris Account

Go to the FBR IRIS portal. You can register free NTN online in Pakistan if don’t have.
Enter your CNIC/NTN and password to log in to your account.

Step 2: Select the Appropriate Return Form and Tax Year

Once logged in, navigate to the ‘Declarations’ tab.
From the options, select the relevant income tax return form. For most individuals and Association of Persons (AOPs) with rental income, this will be the “Normal Return for Individual / AOP/Co”.
You will be prompted to select the Tax Period or Tax Year for which you are filing. Remember that a Tax Year typically runs from July 1st to June 30th. For example, Tax Year 2025 covers the period from July 1, 2024, to June 30, 2025. Select the correct year and continue.

Step 3: Navigate to the “Property” Section

Once the return form is open, you will see a menu on the left-hand side.
Expand the relevant income section, labelled “Property”.
Within this section, click on “Receipts / Deductions”. This area is where you will declare your rental income and claim eligible expenses.
Rental Income Tax Filing

Step 4: Enter Your Annual Gross Rental Income

In the “Receipts / Deductions” section, find the field designated for reporting total rent received.
Enter the total gross rental income received from your property(s) during the selected tax year. Ensure this includes all rent, non-refundable advances, and other non-refundable charges.

Step 5: Enter Allowable Deductions Against Property Income

Below the income fields, you will find fields for various allowable deductions. Carefully enter the amounts for the expenses you incurred and are permitted to deduct against your rental income during the tax year. Common deductions include:

Maintenance and Repair (often subject to a limit, e.g., 20% of taxable income from property).
Property Taxes paid.
Insurance Premiums paid for the property.
Rent collection charges/commission paid.
Ground Rent paid (if applicable).

Enter the total of these allowed deductions in the relevant fields (e.g., “Total Deductions from Property”).

Step 6: Save Data and Calculate

After entering your income and deduction details, click the “Save Draft” button to save your progress.
Then, click the “Calculate” button. The Iris system will automatically calculate your net taxable property income (Gross Income – Total Deductions) and the initial tax payable based on the applicable tax slabs for property income.

Step 7: Enter Details of Withholding Tax (WHT) Paid

Navigate to the “Tax Chargeable / Payments” tab on the left-hand menu.
Look for sections related to “Tax Collected / Withheld”.
Here, you need to declare the withholding tax (WHT) that your tenant(s) may have deducted from your rent payments and deposited with the FBR.
Find the relevant code for WHT on rent from immovable property, which is commonly 64080001 (Rent of Immoveable Property u/s 155).
Enter the total amount of WHT deducted by your tenant(s) during the tax year against this code.
To calculate withholding taxes on rental income and deductions allowed in rental income, you can visit Rental Income Tax Calculator

Step 8: Calculate Final Tax Liability

Go back to the main calculation or summary section of the return (often updated automatically after entering payments).
The Iris system will adjust the initially calculated tax liability (from Step 6) by subtracting the WHT you declared (in Step 7).
The result will be your Net Tax Payable or Refundable Amount.
- If the calculated tax is more than the WHT paid, the difference is the net tax you owe.
- If the WHT paid is more than the calculated tax, the difference indicates a potential tax refund.

Step 9: Pay Any Net Tax Payable

If the calculation shows a “Net Tax Payable” amount, you need to pay this difference.
In the Iris portal, find the option to generate a Payment Slip ID (PSID).
Create a PSID for the payable tax amount.
You can then pay this amount online using various digital means, such as online banking (through 1-Link), mobile banking apps, or other digital payment platforms by using the generated PSID.
Once paid, the PSID status should be reflected in your Iris account, confirming the tax payment.

Step 10: Verify and Submit Your Return

Before submitting, review all sections of your return carefully to ensure all income sources (not just property), deductions, and tax payments are accurately reported.
Ensure all mandatory fields are filled.
Once satisfied, verify the return (by entering a PIN).
Finally, click the “Submit” button to file your income tax return.

Important Considerations

Record Keeping: Maintain meticulous records of all rent received, expense invoices, property tax challans, insurance premium receipts, and WHT certificates from your tenants. You may need these to support your claims if audited.
Tax Rates: For rental income tax, withholding tax, and deductions in Pakistan, visit Rental Income Tax Rates.
Professional Help: If your tax situation is complex or you are unsure about any step, consider consulting with a tax advisor or consultant.

By following these steps diligently and ensuring accurate reporting, you can effectively file your tax return for property income in Pakistan and comply with your tax obligations. Remember, timely and accurate filing is key to avoiding future issues.

Muhammad Ebrahim

Intern at TaxationPk, actively contributing to various taxation-related projects. Continuously learning and gaining hands-on experience, bringing enthusiasm and a fresh perspective to the team.

Articles: 46

4 Comments

Jawad

July 18, 2025 / 2:38 pm Reply

Date of comment 018/07/2025

Hi my rental income from Pakistan property for year 2024 was 747000
FBR has sent me 165(7) in my IRIS to provide annually WHT statement
I have declared my bank profit in 2024 return but never mentioned or claimed WHT in electric bills in my returns as I become filer in 2024.

Electric bill is on my name but tenant pays the full bill it does not get deducted from agreed rent

Please advise in this case what I need to do
I am non resident with rental income in Pakistan

Thanks
- Hayat Akbar
  
  July 20, 2025 / 3:10 am Reply
  
  There might be some confusion. WHT is deducated and statements are filed by the tenant (in your case). This might be for payments you have made to someone or claimed and didn’t deduct the taxes. You can reach our 24/7 Helpline for premium assistance along with notice and other financial data (your previous tax-returns).
Kamran Ullah

June 28, 2025 / 4:34 pm Reply

Hello, I would like to understand if rental income is treated separately from salary income for tax purposes. If I earn 4.2 million annually from my salary and 0.6 million from rental income, will a flat 35% tax rate be applied to my rental income?
- Hayat Akbar
  
  June 28, 2025 / 10:37 pm Reply
  
  If your income from salary is less than 70% of your total income, then a separate tax-slab for individuals will be applied on all the income. Otherwise, income generated from other than salary will be taxed at individual tax rates.

Step-by-Step Property Tax Return Filing for Rental Income in Pakistan

What is Property Income?

Why Declare Rental Income in Pakistan?