How can you File FBR Income Tax Returns yourself? As we obey our religious duties with all our faith. Taxes are also one of the duties needing faith and honesty. Definition wise, income tax returns are the set of documents that include the reports of all the expenses and all the financial information you have. You have to submit or make the request of refunds for overpayments of taxes in any financial system with this return. But the question arises that how to file your tax returns? What is the procedure or guide or the methodology? Let’s find out the answer to this.
Understanding FBR and IRIS
The FBR (Federal Board of Revenue) is a government authority that is looking for all the taxes. It’s a revenue division of the government to collect annual revenue. The tax filing, returns and all the aspects as they relate to it are kept in records by FBR. Let’s see the contents for filing a tax return.
Logging into Iris:
Iris is an advance filing method introduced by the FBR. It is for filing your tax by online registration. It is an e-filling (electronic-filing) system that allows you to register yourself first into the portal after which you can login and check the updates and features.
This e-filling system requires an NTN (National Tax Number) or registration number or password to login. It is provided by the organization; you can change or reset the password as well.
Filing Income Tax Returns
For the completion of the return filling, there are certain forms that you need to fill. The tax payer enters particular information in these returns. The main forms are income head and wealth statement which everyone should submit as it’s a policy. The successful submission is possible when the forms file moves from drafts. The wealth form submits on the condition when it follows the rational chart. This chart defines wealth is directly proportional to the income and expense. If the rational matches then your file is submitted otherwise it might get rejected. Also, salaried person can also file tax according to the terms and conditions.
Revision of Tax Returns in FBR
Tax can be revised within the time period of 5 years. For that, an application form is required which has to be approved by the Iris. One can also revise the Wealth statement under the sub-section (9) of section 122 of Income Tax Ordinance without any application.
Filling after the due date:
You can file your tax a little late, but the terms and conditions will remain same as mentioned earlier. Moreover, FBR is introducing significant penalties for late filers to ensure that everyone submits their tax returns within the due date. For instance, FBR put PKR 1000 on individuals and PKR 10000 on companies who were late in filing their returns last year.
Keeping records of the tax file:
Taxable income people are restricted to keep the records for maximum of 6 years. Thus, it means that one should keep their personal financial records, receipts, bills and other financial information for review by FBR within the 6 years of filing.
Eligibility criteria to file the tax:
If your income has reached the required threshold, you are eligible for the tax dues. Moreover, the criteria are defined by the FBR department with terms and condition applied to it very clearly. You are eligible if you’re monthly salary is more than PKR 20,000, or you hold movable or non-movable assets.
Credits, rebates and exemptions:
The persons who are regular tax payers can avail this feature only under certain terms and conditions. This is available only for active payers.
Privacy of personal information:
The personal information is secure with proper data privacy. It is not disclosed to anyone expect the authorized officials. Whereas, if you are eligible to pay tax and you didn’t file it, then you have to pay heavy penalty. You may also have to face the prosecutions under the provisions of Income Tax Ordinance, 2001.
Key forms of Tax Returns in Pakistan
As we discuss earlier, the two major forms are income statement and wealth statement. One can easily enter the income and expenditure in the former. Whereas, one should submit the information regarding assets, businesses of other sources of income in the latter form.