Filing your income tax return is obligatory for every person who falls within the ambit of law in terms of income earned by him in the tax year. The Tax Return Filing 2025 claim process is necessary to remain in compliance with the Federal Board of Revenue (FBR) requirements and consequences for not following these guidelines. Below are the steps to guide you with the last date, deadline and the 2025 Tax Filing for Income Tax Return and how to smooth your e-Filing Income Tax returns and make it easy and hassle-free. 

Key Deadlines for Tax Return Filing 2025 

Tax Year 2025 (July 1, 2024, to June 30, 2025) is the last date to submit your Income Tax Return in Pakistan for Tax Year 2025 or Income Tax Return Deadline in Pakistan for Tax Year 2025 according to your taxpayer category at: 

• Deadline for Companies, Cooperative Societies, Firms, and LLPs is September 30, 2025 for FY 2019-20.  

• Individuals, Freelancers, AOP: The due date is 30th September 2025. This will affect salaried individuals making PKR 600,000 per year or more, freelancers and AOPs with income above the taxable threshold. 

• Corporations (Normal Tax Year): Corporations with a year end of June 30th must file by December 31, 2025. 

Failing to meet these deadlines can incur penalties, including a PKR 1,000 per month fee (up to a maximum set according to income), higher withholding tax rates and the loss of filer status, which has implications for transactions such as banking and the purchase of property. 

 

Who Needs to File an Income Tax Return in 2025? 

Tax Return Filing Individuals and companies listed below need to file tax return as per the Income Tax Ordinance 2001 – Section 114: 

• Companies: It is compulsory to file an Income Tax Return for all registered Companies, whether or not the company has an income. 

• Individuals: People earning a yearly income of more than PKR 600,000 whether salaried, freelancer or businessmen must file it. 

• AOPs: The person associations must be submitted by September 30, 2025. 

• Property Owners: If you own a real property meeting specified minimum criteria (e.g. 500 square yards or more), then return filing is mandatory even if your income is less than the minimum amount not chargeable to tax. 

• Non-Resident Pakistanis: If you aren’t a resident of Pakistan but have any income in the country, chances are; you will still need to file, and you may need professional Income Tax Returns Services to do it. 

Even if your income does not cross the taxable threshold, filing helps you remain on the Active Taxpayers List (ATL), providing perks such as reduced tax rates and better access to financial services. 

 

Steps to File Your Tax Return in Pakistan 

Now, getting yourself registered for an Income Tax Return in Pakistan has been made easier by the FBR through its newly launched IRIS 2.0 platform. So, here’s how you can file Tax Returns in Pakistan: 

• Register with FBR: Log in to the FBR website, go to ‘e-Enrollment for Registered Persons’ and register yourself to get the National Tax Number (NTN). 

• Log into IRIS 2.0: Log in to IRIS 2.0 with your CNIC as Login ID and password through the Income Tax Return System. 

• Choose Tax Year: Select “Normal Return” and choose 2025 for income earned from July 1, 2024, to June 30, 2025. 

• Fill the Form: Fill up details like income from salary, deductions, property and so on. Select “Continue” to access form 114(1) for Tax Return Filing 2025. 

• Upload Documents: Provide the necessary documents such as bank statements, withholding tax certificates, and property documents. 

• Payment of taxes: If applicable, pay the taxes online or at designated branches of FBR. 

• Submit Return: Submit your return electronically through the IRIS portal. 

 

Documents Required for Tax Return Filing 

To ensure an error-free tax return filing process, gather the following documents: 

• Bank Statements: For all accounts from July 1, 2024, to June 30, 2025. 

• Withholding Tax Certificates: From mobile, internet, or other services for the same period. 

• Asset Details: Properties, vehicles, cash, or investments. 

• Income Records: Salary certificates, rent receipts, or freelance earnings. 

• Expense Records: Utility bills, maintenance costs, or local property taxes. 

Being organized reduces the risk of errors and maximizes legal deductions, potentially lowering your tax liability. 

 

Consequences of Missing the Deadline 

Not filing your tax return in time as required can cause: 

• Penalties: Minimum penalties for late filing PKR 1,000 per month. 

• Higher Withholding Taxes: Non-filers have to pay more in taxes for their banking, property and car activity. 

• Loss of Filer Status: Exclusion from the ATL, limiting access to financial benefits. 

• Legal: Consequences can be audits or proceedings by the FBR for non-adherence. 

To stay away from these problems, you can begin the process early and you can also approach the professional income tax returns services to get help. 

 

Stay Compliant with CBM Consultants 

Tax and accounting services provider also has an important part to play in filing income tax return process in Pakistan, that is where CBM Consultants contribute. It remains updated with the changing tax laws and income tax slab revisions so that your return is in line with the recent FBR edicts. Our experts help in precise computation of tax liability based on income, eligible exemptions, and advance tax paid. 

Additionally, CBM Consultants can assist with gathering all the necessary documents, including pay slips, bank statements, and asset information to facilitate your return. We handle the mechanics of filing via FBR’s IRIS portal, assuring accuracy and preventing delays. We also keep track of tax due dates and remind you of when returns, that is, e-filings are in arrears in order to avoid penalties. 

Further, with our assistance, you can also preserve your ATL status (to avail reduced WHT rates) Not only in compliance, but CBM provide strategic tax planning to maximize your financial position throughout the year. 

 

Conclusion 

The closing date of Tax Return Filing 2025 in Pakistan is September 30, 2025, for individuals, freelancers and AOPs and 31st December 2025 for companies. Filing returns on time will maintain compliance, prevent penalties and keep you as an active taxpayer. Being a salaried person, business or non-resident, you will first need to know how to file your online TDS return and yes, be ready with the required documents for filing your returns in an easy way. For professional help, look to Income Tax Returns Services to handle the sands of the Tax Returns Pakistan. Don’t procrastinate—now’s the time to get organized for the income tax return deadline! 

In Pakistan, Basic salary is the amount paid to an employee before the additions and deductions of a pay packet. It’s the base on which other elements, including allowances, bonuses and taxes, are based. For purposes of computing the basic salary, an employer usually deducts from the gross salary all allowances and other additions. 

Here’s how to understand basic salary calculation in Pakistan: 

1. Gross Salary: This is the entire remuneration an employee earns before any deductions. That includes the base salary plus any bonuses, overtime, and allowances. 
2.  Allowances: These are additional payments made by the employer to meet certain expenses such as house rent (HRA), transportation (conveyance allowance), and medical expenses. 
3. Deductions: These are deductions from the gross salary, such as income tax, Employee’s Old-Age Benefits Institution (EOBI) contribution, and all other such mandatory payroll deductions. 

 

While many are struggling and trying to make ends meet, Pakistan is currently facing several income tax changes starting from July 2025 that affect the monthly net amount and annual tax earning of a working individual. It’s important that you know the income tax calculation rules that have been announced, including the recent Income Tax Slabs for 2019-20. In this blog, we have done a comparison of tax on salary in Pakistan – 2025 vs 2026, detailing the impact that it would have on both the employees and employers.  

 

Income Tax Slabs for the Year 2025-26 

Below is the comparison between the tax rates for the year 2025-26. As per the latest income tax regulations for the year 2025–2026, the following slabs and income tax rates will be applicable for salaried individuals: 

 

Annual Income	Tax Rate (2025)	Tax Rate (2026)
Up to 600,000	0%	0%
600,000-1,200,000	5%	1%
1,200,000-2,200,000	15%     (Rs. 30,000+15%)	11%   (Rs. 6,000+11%)
2,200,000-3,200,000	25%     (Rs. 180,000+25%)	23%   (Rs. 116,000+23%)
3,200,000-4,100,000	30%     (Rs. 430,000+30%)	30%   (Rs. 346,000+30%)
Exceeding 4,100,000	35%     (Rs. 700,000+35%)	35%    (Rs. 616,000+35%)

 

Tools for Tax Calculation on Salary 

To make your tax planning smoother, leverage these resources: 

• FBR Official Salary Tax Calculator 

• HR-provided salary slips for real-time monthly tax deduction 

• Tax advisory firms offering employee tax planning packages 

 

How is Tax Calculated on the Salary of an Individual? 

• Determine your annual gross salary 

(Salaries + Allowances + Bonus (if taxable) 

• Know which Income Tax Slab applies to you 

Use the current year’s Income Tax Slab announced by FBR (e.g.,  FY 2025-26). 

• Multiply the slab rate to taxable income. 

Now deduct the exemption limit (e.g., PKR 600,000 or PKR 800,000) and apply the relevant percentage rates on the balance of income according to the slab. 

• Consider any deductions or allowances 

Certain benefits (medical claim, gratuity, Zakat etc.) may be exempted depending on your profile. 

• Take the sum of the yearly tax payable and divide it by 12. 

This gives you the monthly tax deduction from your salary.  

 

Key Tax Reliefs and Exemptions 

• Medical allowances for employee medical treatment, hospitalization, or family hospitalization expenses are tax-exempt. 

• Up to 10% of basic salary is not taxable if no facility is provided. 

• Zakat and Usher Ordinance allows special direct deductions. 

• Tax credit granted on donations to recognized non-profit organizations. 

• Donations from individuals to associates are capped at 15% of taxable income. 

• Certain designated institutions have migrated into the tax credit system, reducing tax benefit cap for charitable donations. 

 

2026 Tax Calculation – What’s Changing? 

Proposed Adjustments in Income Tax Slabs:  

• Exemption threshold could be increased from PKR 600,000 to PKR 800,000 

• New slab introduced at high earners above PKR 12 million with a rate of 40% 

• Single Lower slab rates for ease of understanding and automation 

These changes aim to: 

• Relieve the burden on the poor and middle class 

• Increase the tax burden on high-net worth individuals. 

• Encourage digital filing, through a revised salary tax calculator 2025-26 Pakistan. 

 

Stay Updated with CBM Consultants 

CBM Consultants contributes significantly in helping salaried people to calculate tax on salary in a proper way. By using the right income tax slabs and being in line with the current FBR regulations, we make certain that the employees are on the right tax amount and that they aren’t paying more or less than they should be. We also facilitate a tax efficient construction of the salary, incorporating tax free deductions and benefits, and hence allowing a legal reduction in the taxable income.  

Furthermore, our experts assist people in demanding deductions such as Zakat, donations and assets so that tax liability decreases even more. These outlets also manage the income tax returns duly prepared and filed, containing claims for refunds where necessary, in a correct and timely manner. In case of audits or FBR inquiries, we offer representation and compliance support. 

 

Conclusion: 

The federal budget 2025–26 is filled with positives for Pakistan’s salaried class. Lower rates and rationalized slabs will make you feel richer. Armed with knowledge of these modifications and some preplanning, you can enjoy the full advantages and leave the year-end surprises behind. 

And if you are worried about making these changes to your revenue, fear not and employ a trustworthy tax and accounting firm such as CBM Consultants to make your financial year smarter and more efficient.