A Guide On Filing Taxes

Taxes are something we all wish we learned how to deal with in school. But don’t worry – we’re answering all your questions about how to file taxes with a little help from accountant Uroosa Samad of Usmani & Co. Unfortunately, no matter how educated you are, it’s very easy to be tax illiterate. Not only is filing your taxes beneficial for you, as you get access to certain tax benefits and offers, but it is also an important duty to fulfil as a citizen of Pakistan. To read a simplified guide on how to deal with the daunting topic that is taxes, keep scrolling.

Who Is Eligible To File Income Tax?

• Any person who holds an NTN (National Tax Number)
• Anyone with a taxable salary (Rs. 600,000 per annum or above) 
• Registered companies
• Business owners
• NGO’s

How Do You Register Yourself With The FBR (Federal Board of Revenue)

There is an online FBR portal that requires an individual’s CNIC for registration. Uroosa explains that there is a short form on the website which needs to be filled, after which you will be given login details for the FBR portal. Using these login details, you will be required to fill out ‘Form 181’ which is available in the drafts folder of the portal you have used to register. 

How Do You File For Tax Returns?

To file for tax returns, you must compile and submit specific documents. According to Uroosa, these include:

• Salary certificate
• Wealth statement 
• Documents regarding your expenses

In short, this includes all your official assets, liabilities, and withheld taxes.*  First, you will have to log in to the FBR website with the ID and password that will have been given to you during registration. Then you have to upload these documents onto the portal. 

Around 5 minutes after uploading the documents, you will receive a ‘181 (Form of Registration Filed Voluntarily) (Income Tax)’ on the portal. This is your tax order.

At the end of the financial year, before September 30th, you will use this document to file for your tax returns via the FBR website. 

* These documents may differ based on the type of taxpayer you are. Check the official FBR website for further details. 

The Alternative To Filing Taxes Online

To file for tax returns manually, you will have to visit your Regional Tax Office and go to the Tax Facilitation Counters. The entire online process will then be done in person. You should carry with you:

• Original CNIC
• Cellphone with the SIM that is registered against your CNIC

If you’re a business owner, there may be some more documents required that can be found on the FBR website. The Facilitation officer will then begin your registration process after reviewing the documents. Then, you will have to fill out the Form 181 after which your application will be submitted. At the end of this process, you should receive a Login ID and Password, detailing your account with the FBR.