Income Tax Return Filing Common Mistakes in Pakistan

Check your FBR Maloomat Portal before filing an income tax return:

Income Tax Return Filing Common Mistakes in Pakistan

The law presumes that any income or asset not disclosed in the income tax return is liable to be taxed under the law. FBR on a daily basis retrieves income, asset, and expense information of persons from different reporting entities. All the information that FBR receives is used in conjunction with the income tax return filed by you with FBR. In case of incomplete information, FBR initiates a legal proceeding and sends you a notice for compliance. It is therefore strongly recommended that before filing your income tax return, do check your FBR Maloomat Portal to avoid filing incomplete returns. Use the FBR Maloomat Portal now by entering your login credentials to know the information FBR already has about you.

 Declare the Actual Expenses:

Income Tax Return Filing Common Mistakes in Pakistan

The taxpayer must also calculate all the expenses incurred in a tax year, including rent, car maintenance, traveling, education, household expenses, and such other expenses as may be incurred during the year.

Filing your income tax return in Pakistan is not only a legal obligation but also a smart financial move, especially if you want to become a filer and enjoy tax benefits. However, many taxpayers unknowingly make mistakes that can lead to penalties, FBR notices, or even audit risks.

Not Filing the Return at All:

Income Tax Return Filing Common Mistakes in Pakistan

One of the biggest mistakes is not filing at all, especially by those who

Think their employer has already paid tax

Are salaried and below the tax threshold

Assume filing is optional:

Income Tax Return Filing Common Mistakes in Pakistan

Solution: File your return annually, even if no tax is due. It’s required by law and helps you appear in the Active Taxpayers List (ATL).

Missing the Deadline:

Income Tax Return Filing Common Mistakes in Pakistan

Filing after the deadline (usually September 30) can result in penalties and removal from ATL.

Solution: Set reminders and file early. Don’t wait for the last date when IRIS slows down.

Incorrect Salary or Income Declaration:

Income Tax Return Filing Common Mistakes in Pakistan

Many people enter the wrong salary amount, excluding bonuses, or forget other income sources (like bank profit or freelance income).

Solution: Use your salary certificate, and bank statements, and keep track of all income types.

Skipping the Wealth Statement:

Income Tax Return Filing Common Mistakes in Pakistan

A lot of individuals submit income tax returns but skip the wealth statement, which is mandatory.

Solution: Declare your total assets, liabilities, and annual expenses accurately; they should match your income.

Not Declaring Bank Accounts or Property:

Income Tax Return Filing Common Mistakes in Pakistan

FBR can access banking and real estate data. If you hide accounts or properties, you may face audits.

Solution: Disclose all bank accounts, vehicles, and properties in your return and wealth statement.

 Incorrect CNIC or Personal Details:

Income Tax Return Filing Common Mistakes in Pakistan

Wrong CNIC numbers, phones, or emails can lead to login issues and missed notifications.

Solution: Double-check your profile information before submission.

Not Claiming Tax Refunds or Deductions

Some salaried individuals forget to claim tax refunds on:

Zakat donations

Educational expenses

Medical insurance

Solution: Consult with a tax professional or review FBR’s allowable tax credits.

WRONGFULLY CLAIMING TAX CREDITS AND TAX DEDUCTIONS:

Income Tax Return Filing Common Mistakes in Pakistan

Several tax credits and deductions are available to certain people under the law. However, in some cases, taxpayers incorrectly claim tax credits and deductions. It is advisable to seek legal advice from a tax expert to determine if you are eligible for any tax credit or deduction under the law, to avoid receiving any income tax notices from the Federal Board of Revenue (FBR).

Submitting Without Verification:

Income Tax Return Filing Common Mistakes in Pakistan

If you don’t submit the return after completing it, it remains in draft form and is not considered filed.

Solution: Always click “Verify” and then “Submit” in IRIS. You’ll receive an acknowledgment email once filed.

conclusion:

Income Tax Return Filing Common Mistakes in Pakistan

Avoiding these common mistakes can save you time, money, and stress. Filing your income tax return in Pakistan is easier than ever with the FBR IRIS portal, but accuracy and attention to detail are crucial.

If you’re unsure, it’s always best to consult a tax consultant to help you navigate the process properly.

Contact Us:

Income Tax Return Filing Common Mistakes in Pakistan

Income Tax Return Filing Common Mistakes in Pakistan

Follow us on social media for updates, tips, and tax humor:

• Facebook: MBS Taxation
• Website: MBS Taxation
• Our Website Contact Form: Click Here
• Whatsapp Number: +923087543324

We’re here to simplify your taxes so you can focus on what matters most—your work, business, and life!

FAQs:

Income Tax Return Filing Common Mistakes in Pakistan