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Dividends from Real Estate Investment Trusts (REITs) and general companies cost Active Filers 15% in tax, but Non-Filers lose a massive 30%. • Winning a raffle, lottery, or sales promotion prize costs Non-Filers a whopping 40% in tax, compared to 20% for Filers. • 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. • Active Filers importing CKD kits for Electric Vehicles pay a minimal 1% tax, whereas Non-Filers pay double at 2%. • Cash withdrawals by a person whose name does not appear on the Active Taxpayers’ List are hit with an automatic 0.8% advance tax. • If you receive dividends from Independent Power Purchasers (IPPs), Filers pay a 7.5% tax while Non-Filers surrender 15%. • Salaries under Rs. 600,000 are completely tax-free, maintaining a 0% rate regardless of your taxpayer status. • Companies generating rental income from immovable property pay a 15% tax if they are Active Filers, but face a 30% rate as Non-Filers. • Pensions under 10 million rupees remain 100% tax-exempt for everyone, no matter what your filing status is. • 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. • 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. • 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. • Importing basic goods from Part-I of the Twelfth Schedule costs Active Taxpayers just 1% in tax, while Non-Filers have to pay 2%. • Providing IT and IT-enabled services costs Active Taxpayers just 4% in withholding tax, while Non-Filers must pay 8%. • Purchasing a 1601cc to 1800cc vehicle will cost Non-Filers a 9% tax, which is three times the 3% rate given to Active Filers. • 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. • Payments to electronic and print media for advertising services are taxed at just 1.5% for Active Taxpayers, compared to 3% 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. • Buyers of 1301cc to 1600cc cars pay a 2% advance tax if they are Filers, but Non-Filers pay exactly triple at 6%. • 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. • 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. • The sale of petroleum products is taxed at 12% for Filers and exactly double that at 24% for Non-Filers. • Capital gains arising on the disposal of certain debt securities are taxed at 15% for Filers, but double to 30% for Non-Filers. • Registering a 2001cc to 2500cc luxury vehicle incurs a 7% tax for Active Filers, but a staggering 21% tax 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%. • Winning a raffle, lottery, or sales promotion prize costs Non-Filers a whopping 40% in tax, compared to 20% for Filers. • 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. • Active Filers importing CKD kits for Electric Vehicles pay a minimal 1% tax, whereas Non-Filers pay double at 2%. • Cash withdrawals by a person whose name does not appear on the Active Taxpayers’ List are hit with an automatic 0.8% advance tax. • If you receive dividends from Independent Power Purchasers (IPPs), Filers pay a 7.5% tax while Non-Filers surrender 15%. • Salaries under Rs. 600,000 are completely tax-free, maintaining a 0% rate regardless of your taxpayer status. • Companies generating rental income from immovable property pay a 15% tax if they are Active Filers, but face a 30% rate as Non-Filers. • Pensions under 10 million rupees remain 100% tax-exempt for everyone, no matter what your filing status is. • 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. • 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. • 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. • Importing basic goods from Part-I of the Twelfth Schedule costs Active Taxpayers just 1% in tax, while Non-Filers have to pay 2%. • Providing IT and IT-enabled services costs Active Taxpayers just 4% in withholding tax, while Non-Filers must pay 8%. • Purchasing a 1601cc to 1800cc vehicle will cost Non-Filers a 9% tax, which is three times the 3% rate given to Active Filers. • 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. • Payments to electronic and print media for advertising services are taxed at just 1.5% for Active Taxpayers, compared to 3% 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. • Buyers of 1301cc to 1600cc cars pay a 2% advance tax if they are Filers, but Non-Filers pay exactly triple at 6%. • 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. • 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. • The sale of petroleum products is taxed at 12% for Filers and exactly double that at 24% for Non-Filers. • Capital gains arising on the disposal of certain debt securities are taxed at 15% for Filers, but double to 30% for Non-Filers. • Registering a 2001cc to 2500cc luxury vehicle incurs a 7% tax for Active Filers, but a staggering 21% tax for Non-Filers. •

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If you receive dividends from Independent Power Purchasers (IPPs), Filers pay a 7.5% tax while Non-Filers surrender 15%. • 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. • 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. • Selling rice, cotton seed, or edible oils comes with a low 1.5% tax for Filers, but a 3% tax for Non-Filers. • Payments to electronic and print media for advertising services are taxed at just 1.5% for Active Taxpayers, compared to 3% for Non-Filers. • 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. • Capital gains arising on the disposal of certain debt securities are taxed at 15% for Filers, but double to 30% for Non-Filers. • Importing basic goods from Part-I of the Twelfth Schedule costs Active Taxpayers just 1% in tax, while Non-Filers have to pay 2%. • Active Filers importing CKD kits for Electric Vehicles pay a minimal 1% tax, whereas Non-Filers pay double at 2%. • 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. • Importing pharmaceutical products carries an 8% tax for Non-Filers, which is exactly double the 4% rate applied to Active Taxpayers. • Providing IT and IT-enabled services costs Active Taxpayers just 4% in withholding tax, while Non-Filers must pay 8%. • Buyers of 1301cc to 1600cc cars pay a 2% advance tax if they are Filers, but Non-Filers pay exactly triple at 6%. • The sale of petroleum products is taxed at 12% for Filers and exactly double that at 24% for Non-Filers. • Registering a 1000cc motor vehicle costs Filers just 1% in tax, while Non-Filers are penalized with a 3% tax. • Registering a 2001cc to 2500cc luxury vehicle incurs a 7% tax for Active Filers, but a staggering 21% tax 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%. • 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. • Cash withdrawals by a person whose name does not appear on the Active Taxpayers’ List are hit with an automatic 0.8% advance tax. • Purchasing a 1601cc to 1800cc vehicle will cost Non-Filers a 9% tax, which is three times the 3% rate given to Active Filers. • Pensions under 10 million rupees remain 100% tax-exempt for everyone, no matter what your filing status is. • 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. • Salaries under Rs. 600,000 are completely tax-free, maintaining a 0% rate regardless of your taxpayer status. • Companies generating rental income from immovable property pay a 15% tax if they are Active Filers, but face a 30% rate as 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%. • 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. • 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. • Selling rice, cotton seed, or edible oils comes with a low 1.5% tax for Filers, but a 3% tax for Non-Filers. • Payments to electronic and print media for advertising services are taxed at just 1.5% for Active Taxpayers, compared to 3% for Non-Filers. • 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. • Capital gains arising on the disposal of certain debt securities are taxed at 15% for Filers, but double to 30% for Non-Filers. • Importing basic goods from Part-I of the Twelfth Schedule costs Active Taxpayers just 1% in tax, while Non-Filers have to pay 2%. • Active Filers importing CKD kits for Electric Vehicles pay a minimal 1% tax, whereas Non-Filers pay double at 2%. • 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. • Importing pharmaceutical products carries an 8% tax for Non-Filers, which is exactly double the 4% rate applied to Active Taxpayers. • Providing IT and IT-enabled services costs Active Taxpayers just 4% in withholding tax, while Non-Filers must pay 8%. • Buyers of 1301cc to 1600cc cars pay a 2% advance tax if they are Filers, but Non-Filers pay exactly triple at 6%. • The sale of petroleum products is taxed at 12% for Filers and exactly double that at 24% for Non-Filers. • Registering a 1000cc motor vehicle costs Filers just 1% in tax, while Non-Filers are penalized with a 3% tax. • Registering a 2001cc to 2500cc luxury vehicle incurs a 7% tax for Active Filers, but a staggering 21% tax 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%. • 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. • Cash withdrawals by a person whose name does not appear on the Active Taxpayers’ List are hit with an automatic 0.8% advance tax. • Purchasing a 1601cc to 1800cc vehicle will cost Non-Filers a 9% tax, which is three times the 3% rate given to Active Filers. • Pensions under 10 million rupees remain 100% tax-exempt for everyone, no matter what your filing status is. • 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. • Salaries under Rs. 600,000 are completely tax-free, maintaining a 0% rate regardless of your taxpayer status. • Companies generating rental income from immovable property pay a 15% tax if they are Active Filers, but face a 30% rate as 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. •

How to File Simplified Electronic Income Tax Return (2026) – Step-by-Step Guide

Learn how to file your Income Tax Return for Tax Year 2025 (01 July 2024 – 30 June 2025) through FBR’s IRIS system. This step-by-step guide explains income details, withholding taxes, tax credits, wealth statement, and final submission. Deadline: 30 September 2025.

Filing your Income Tax Return for Tax Year 2026 (covering the period from 01 July 2025 to 30 June 2026) has been made simpler through the Simplified Electronic Return for Individuals introduced by the Federal Board of Revenue (FBR). This system is designed to make the process easier for salaried individuals, pensioners, property owners, freelancers, and service providers.

The last date to file your return is 30 September 2026. To avoid penalties and stay compliant, every eligible taxpayer should complete their filing within the deadline.

Steps to File Your 2025-26 (2026) Tax Return

Filing your income tax return for the tax year 2025–26 is mandatory if you meet the income threshold set by FBR or if you’re a filer aiming to remain on the Active Taxpayers List (ATL). Whether you’re a salaried person, freelancer, business owner, or service provider, this complete and updated step-by-step guide will help you file your tax return online through the FBR IRIS portal efficiently.

1. Log In to FBR IRIS Dashboard

Visit IRIS 2.0 and Login to your dashboard.

Use your CNIC as Registration Number
Enter your password (If forgotten or expired, reset FBR IRIS password)

2. Start Filing Your Income Tax Return

From the dashboard:

On top left, click “Declaration” usally the second drop down menu.
On left side, inside “All Options” click on “Returns / Statements (Original)”.
Select “Normal Return (Ind/Aop/Coy)” available on top of mid-column on right.
Enter 2026 in Tax Year and select “01-JUL-2025 – 30-JUN-2026” from the options.
Now click on “Continue” which will open form 114(1) for filing 2026 tax returns

The filing process is presented through a series of steps within the IRIS Income Tax Return interface:

The first step involves confirming your residency status for the Tax Year 2025. You will be asked if you were present in Pakistan for 183 days or more during the period from 01 July 2025 to 30 June 2026. You must select “Yes” or “No” and then click “Continue”.

3. Income Sources (Income Details)

This section requires you to declare various types of income for the Tax Year 2026 (01 July 2025 to 30 June 2026). Pre-filled details may be available for some income types, which you can choose to edit:

Salary

Details of your salary are pre-filled.
You can search for your Employer name/NTN or select “I can’t find my employer’s name or NTN”.
Enter your Gross salary, Transport monetisation benefit, Tax deducted from salary, and Salary/allowances exempt from tax.
You will also be asked if you received any salary arrears, employment termination benefits, or additional salary from a different employer.

Filing your salary tax return in Pakistan correctly ensures that your income tax for salaried person is recorded without error by the FBR.

Pension

Enter details of your pension.
You can search for your Employer name/NTN or select “I can’t find my employer’s name or NTN”.
Enter your Gross pension.
Indicate if you receive any additional pension from a different employer.

Rent from Property

Enter details of your rental income from property.
Provide the Rent from property amount and Repair and maintenance allowance.
Specify if you want to declare any receipts other than rent or claim any deductions against rent from property.

Reporting rental income tax in Pakistan is mandatory for landlords — let our experts handle your FBR rental tax return accurately and on time.

Payment for Services

Provide details of payment for services received.
You can add payments by providing Gross revenue (incl. Sales Tax), Sales Tax, Gross revenue (excl. Sales Tax), Income tax rate (Minimum Tax), Income tax deducted on gross revenue (incl. Sales Tax), and Income tax deducted on gross revenue (excl. Sales Tax).
Enter any Service-related expenses.

Profit on Bank Account

Pre-filled details of your profit on bank account are displayed, for example, 100,000.
You can choose whether to edit these pre-filled income details.

If you’ve earned from bank deposits, filing your profit on debt tax return helps you comply with withholding tax on profit rules set by FBR.

Dividends

Pre-filled details of your dividends are displayed, for example, 697,000.
You can choose whether to edit these pre-filled income details.

4. Withholding Taxes

This section displays pre-filled details of your taxes withheld during the Tax Year 2026:

Adjustable Tax: Includes “Tax Deducted on Salary”, “Tax Deducted on Cash Withdrawals”, and “Tax Deducted on Credit / Debit Card Transactions”.
Minimum Tax: Includes “Tax Deducted on Payment for Services”.
Final Tax: Includes “Tax Deducted on Profit on Bank Account”, “Tax Deducted on Dividends”, and “Tax Deducted on Electricity Bill”.
A Total Withholding Taxes sum (A+B+C) is calculated, representing Total Adjustable Tax + Total Minimum Tax + Total Final Tax.
You will be asked if you want to report any withholding taxes other than those mentioned above.

5. Tax Relief, Reductions & Credits

This section helps determine your eligibility for deductible allowances, tax reductions, and tax credits that can reduce your taxable income and/or tax liability for the Tax Year 2026:

You will answer questions such as:
- “Were you a full-time researcher or teacher in an educational institute during the Tax Year 2026?”.
- “Did you pay tuition fee for your children’s education during the Tax Year 2026?”.
- “Did your bank deduct Zakat from your bank account, or did you make any Zakat payments to a recognized Zakat collection authority, during the Tax Year 2026?”.
- “Do you want to claim tax relief for any area other than those mentioned above?”.

6. Wealth Statement

This section requires you to provide or re-enter details of your bank accounts, property, and personal assets and liabilities as of 30 June 2025:

Re-enter bank account details: Re-enter your previously-added bank account details for verification purposes, including the 24-digit IBAN and the Account closing balance (as of 30 June 2026).
Add bank account(s): Provide the closing balance for your bank accounts as of 30 June 2026, including Bank name, Account title, and IBAN.
Re-enter property details: Re-enter your previously-added property details to reflect updated and complete information. This includes Property description, Property type, Measurement unit, Declared cost, Country (pre-filled as Pakistan), City, Area/Housing society, and House / Street / Block.
Your personal assets and liabilities: Review and update your status for Tax Year 2025 (1 July 2024 to 30 June 2025) for:
- A. Assets in Pakistan: Cash in Hand, Bank Accounts, Motor Vehicles, Property, Investments, Precious Possessions, Receivables, Any Other Assets. The Total Personal Assets will be calculated.
- B. Liabilities in Pakistan: You can add any liabilities. The Total Liabilities will be calculated.
- Net Assets (A-B) = Total Personal Assets – Total Liabilities.
- Change in Net Assets: This is calculated as Net Assets (as of 30 Jun 2025) – Net Assets (as of 30 Jun 2024).
- You will be asked if you have any assets or liabilities outside Pakistan.

7. Wealth Reconciliation

This section requires you to review and update details of your money coming in and money going out during Tax Year 2026 (1 July 2025 to 30 June 2026).

Your money coming in: Categories include Total Income, Foreign Remittance, Gift Received, Inheritance, and Other. An alert may appear if “Your Change in Net Assets” is greater than “Your Total Income” (e.g., Change in Net Assets 2,300,000 is greater than Total Income 1,150,000), prompting you to revise your income and/or asset details.
Your money going out: This table is pre-filled using the formula: Total Money Going Out = Total Money Coming In – Change in Net Assets. Categories include Personal Expenses (Your Contribution), Personal Expenses (Family Member’s Contribution), Gift Given, and Other. An alert may appear if “Your Change in Net Assets” is greater than “Total Income” (e.g., Change in Net Assets 1,350,000 is greater than Total Income 1,150,000), prompting you to revise your income and/or asset details.

8. Tax Return Summary & Undertaking

This section provides a summary of your tax return:

Summary: Shows Total Income, Total Tax Deducted / Paid (e.g., 21,800), and Balance Tax Payable (e.g., 0).
You can View Tax Calculations for a detailed breakdown, including:
- Total Income: A. Income Liable to Normal Tax, B. Income Liable to Minimum Tax, C. Income Liable to Final Tax (e.g., 100,000), D. Income Liable to Deemed Income, E. Tax Exempt Income.
- Taxable Income: G. Deductible Allowances.
- Balance Tax Payable: I. Tax Liability (e.g., 15,000), J. Tax Reductions, K. Tax Credits, L. Withholding Taxes, M. Advance Taxes, N. Admitted Taxes.
You can download and review your draft income tax return before submission by clicking “Download Income Tax Return (PDF)”.
You must affirm that the information provided on this page is true by checking a checkbox.

9. Verification and Confirmation

This is the final step for submission:

You will need to enter a 6-digit verification code sent to your registered mobile number.
Upon successful submission, a confirmation message will appear, stating that your income tax return was submitted (e.g., on 10 Jan 2024, 3:33 AM Pakistan Standard Time).
It will confirm that your income tax return for the Tax Year 2026 (1 July 2025 to 30 June 2026) has been successfully submitted.
If applicable, details of your tax refund will be provided, including the amount (e.g., PKR 3,000) and the bank account it was transferred to.
You will have options to “Download Income Tax Return (PDF)” or “Go to Dashboard”.

Filing your tax return correctly not only ensures compliance with the law but also helps you claim eligible tax credits, reductions, and refunds. The Simplified Electronic Return is a step towards making tax filing more transparent and user-friendly in Pakistan. Whether you are a salaried individual, pensioner, or business service provider, following this step-by-step guide will help you complete the process smoothly before the 30 September 2026 deadline.

For updates, clarifications, and expert assistance, you can always consult TaxationPk, your trusted partner for tax guidance in Pakistan.

Syed Babar

Articles: 51

3 Comments

Saif Qureshi

September 7, 2025 / 8:56 pm Reply

Sim block 03443695563
- Hayat Akbar
  
  September 8, 2025 / 1:01 am Reply
  
  Kindly reach your service provider (Telenor), if the number is blocked by FBR, then file your tax returns. As soon as your ATL status become active, your number will be unblocked within 7-10 days.
Drs.Nasir Javed Meo

August 20, 2025 / 9:42 am Reply

AoA brother, Thanks for making it easy filling of tax returns. Can we have contact through WhatsApp i am an overseasPakistani?
Kind regards,
+923315064445

How to File Simplified Electronic Income Tax Return (2026) – Step-by-Step Guide