FBR tax return filing in Karachi is the annual process of submitting your income tax return and wealth statement to the Federal Board of Revenue through the IRIS online portal under the Income Tax Ordinance 2001. MR Law Associates handles complete tax return preparation and filing for salaried employees, business owners, freelancers, professionals, partnerships, and companies in Karachi, including income calculation, deduction claims, wealth statement preparation, and post-filing compliance.
Filing your annual income tax return is not just a legal obligation — it's how you maintain "filer" status with FBR, which saves you significant money on withholding taxes for banking transactions, property purchases, and vehicle registration. MR Law Associates makes the process simple by handling all calculations, documentation, and IRIS portal submission on your behalf.
What Types of Tax Returns Does MR Law Associates File?
MR Law Associates files all categories of income tax returns recognized by FBR. Each category has different income computation rules, applicable tax rates, and filing deadlines.
Salary Tax Return
Filing for salaried employees including government and private sector workers. We calculate taxable salary after deductions (medical, house rent, pension contributions), verify employer's tax deduction at source, and claim any applicable rebates or credits.
Business Tax Return
Filing for sole proprietors, partnerships, and self-employed professionals (doctors, lawyers, consultants). We prepare business income statements, calculate allowable expenses, and compute taxable profit under the applicable tax schedule.
Corporate Tax Return
Filing for private limited companies and public companies registered with SECP. Corporate returns include detailed financial statements, director fee disclosures, tax on company profits, and compliance with minimum tax requirements. Deadline is December 31.
Freelancer Tax Return
Filing for IT professionals and freelancers earning through Upwork, Fiverr, and other platforms. Pakistan provides tax exemptions on IT export income. We ensure proper claiming of exemptions while maintaining compliance and filer status.
How Does the Tax Return Filing Process Work?
Tax return filing with MR Law Associates follows a streamlined process. We handle all calculations, documentation, and digital submission through FBR's IRIS portal, so you don't need to interact with the FBR system directly.
- Information collection: We request your income documents (salary certificate, business records, bank statements), asset details (property, vehicles, investments), and any tax deduction certificates.
- Income computation: We calculate your total taxable income, apply allowable deductions and exemptions, and determine tax liability using the current slab rates.
- Wealth statement: We prepare a comprehensive wealth statement listing all assets and liabilities, reconciled with your income for the year.
- Return preparation: The return is prepared on FBR's prescribed form on the IRIS portal with all schedules properly filled.
- Review and filing: We review the return for accuracy, verify calculations, and submit electronically through the IRIS portal.
- Acknowledgment: FBR issues an electronic acknowledgment receipt. Your name appears on the Active Taxpayer List (ATL), confirming filer status.
What Is the Income Tax Slab in Pakistan?
Pakistan uses a progressive tax slab system where higher income attracts higher tax rates. The slabs are updated annually through the Finance Act. Below are the key points about Pakistan's income tax structure.
| Income Range (Annual) | Tax Rate |
|---|---|
| Up to Rs. 600,000 | 0% (No tax) |
| Rs. 600,001 – Rs. 1,200,000 | 2.5% of amount exceeding Rs. 600,000 |
| Rs. 1,200,001 – Rs. 2,400,000 | Rs. 15,000 + 12.5% of amount exceeding Rs. 1,200,000 |
| Rs. 2,400,001 – Rs. 3,600,000 | Rs. 165,000 + 22.5% of amount exceeding Rs. 2,400,000 |
| Above Rs. 3,600,000 | Higher progressive rates (up to 35%) |
Note: These are indicative slabs. Actual rates are updated annually through the Finance Act. Contact us for the current year's applicable rates.
What Is a Wealth Statement and Why Is It Important?
A wealth statement is a mandatory annual declaration of all your assets, liabilities, and expenses filed alongside your income tax return. FBR uses the wealth statement to verify that your asset accumulation is consistent with your declared income over the years.
The wealth statement includes:
- Assets: All property owned (land, houses, apartments), vehicles, bank balances in all accounts, investments (savings certificates, mutual funds, shares), cash in hand, and personal effects of significant value.
- Liabilities: All loans (bank, personal, mortgage), credit card outstanding, and any debts owed.
- Personal expenses: Estimated household expenditure, education costs, rent, utilities, and other significant expenses during the year.
- Reconciliation: Opening wealth + income − expenses = closing wealth. Any discrepancy is flagged by FBR for explanation.
What Are the Penalties for Late or Non-Filing?
FBR enforces penalties for taxpayers who miss filing deadlines or fail to file entirely. The financial consequences of non-compliance can be significant.
- Late filing penalty: Under Section 182, a minimum penalty of Rs. 40,000 for individuals or 0.1% of tax payable per day of delay, whichever is higher.
- Non-filer status: Your name is removed from the Active Taxpayer List, resulting in double withholding taxes on all transactions.
- FBR notices: Non-filers receive notices under Section 114 demanding returns. Failure to comply leads to further penalties.
- Prosecution: In serious cases of tax evasion, FBR can initiate criminal proceedings resulting in imprisonment and fines.
Why Choose MR Law Associates for Tax Return Filing in Karachi?
MR Law Associates provides professional tax return filing with focus on accuracy, compliance, and maximizing legitimate deductions. Our integrated law firm model means we can also handle related legal matters for our clients.
- Complete tax package: NTN registration + annual return filing + wealth statement as one service.
- Previous years: We file 2-5 years of back returns for clients needing to regularize their tax position for property purchases or company registration.
- Legal support: As a law firm, we represent clients in tax disputes, FBR audits, and appeals before the Appellate Tribunal.
- Business clients: For business clients, we provide related services including civil recovery, cheque bounce cases, and property disputes.
Frequently Asked Questions About Tax Return Filing
What is the filing deadline?
Salaried individuals and business persons: September 30. Companies: December 31. FBR may extend deadlines through notifications. Late filing incurs penalties of minimum Rs. 40,000.
What documents are needed?
Required: CNIC, salary certificate/business records, bank statements (all accounts), property documents, vehicle registration, investment certificates, utility bills, and tax deduction certificates.
What is a wealth statement?
A mandatory declaration of all assets and liabilities filed with the tax return. Includes property, vehicles, bank balances, investments, loans, and annual expenses. Required for income above Rs. 1 million.
What happens if I don't file?
Consequences: Rs. 40,000+ penalty, removal from Active Taxpayer List (non-filer status), double withholding tax on all transactions, FBR notices, and potential prosecution for tax evasion.
Can I file previous years' returns?
Yes. FBR allows filing back returns on IRIS. Late filing incurs penalties but restores filer status. We regularly file 2-5 years of back returns for clients needing compliance.
What are the current income tax rates?
Progressive slabs: 0% up to Rs. 600,000, 2.5% to 35% above that. Exact rates are updated annually through the Finance Act. Contact us at 0336-3120798 for current rates.
Need Tax Return Filing in Karachi?
Contact MR Law Associates for professional income tax return filing, wealth statements, and FBR compliance.
Disclaimer: Tax rates, thresholds, and deadlines are based on the Income Tax Ordinance 2001 and the latest Finance Act. These change annually. Consult MR Law Associates at 0336-3120798 for the most current information. MR Law Associates practices in Karachi, Pakistan.