Accurate income reporting is crucial for tax compliance in Pakistan. The Federal Board of Revenue (FBR) requires taxpayers to update their income sources in the Integrated Registration and Information System (IRIS) portal. This article will guide you through the process and explain why it’s essential.
Steps to Update Your Income Source
- Log in to IRIS: Access your IRIS account using your credentials.
- Navigate to Manage Profile: Locate the “Manage Profile” section.
- Go to the Source Tab: Click on the “Source” tab.
- Select Your Income Type: Choose the relevant income type(s) from the available options.
Importance of Selecting the Correct Income Source
- Accurate Tax Calculation: The FBR may uses income source information to verify your tax liability accurately.
- Avoiding Audits: Incorrect income source declaration can increase your risk of being selected for a tax audit.
- Accessing Tax Benefits: Some tax benefits are specific to certain income sources.
- Eligibility for Tax Refunds: Accurate income reporting is essential for claiming tax refunds if applicable.
Additional Considerations
- Salary Income: If you have salary income, you may need to file a separate salary tax return. However, if you have income from other sources, filing a regular income tax return is necessary.
- Multiple Income Sources: If you have income from various sources, ensure you select all relevant options to avoid underreporting.
Important
Updating your income source on FBR IRIS is a vital step in ensuring accurate tax reporting and avoiding potential penalties. By accurately declaring your income sources, you can maintain compliance with tax laws and optimize your tax liability.
