Not everyone will have taxable income, but many will need to file.
Nil Income Tax Returns allow you to stay in the system and have a filing status without any penalties.
We will show you how to file a Nil Income Tax Return on the FBR Iris portal and how to avoid any issues with your nil returns.
What Are Nil Income Tax Returns?
Nil Income Tax Returns are returns you file to show you had no taxable income or income below the taxable income threshold so you do not need to pay tax.
However, they are a fully legal return to file and you will need to include a Wealth Statement.
Who Typically Files Nil Returns?
- Housewives and family members who do not earn any income.
- Students with no income.
- Freelancers who had no projects during the financial year.
- Start ups who have not begun earning any sales.
- Those on savings, gifts and/or family support.
- Those with assets (property, car etc.) but no taxable income.
Why Should I File Nil Returns?
- To stay on the Active Taxpayer List. Those who file will pay much less tax when dealing with banks, property and vehicles.
- To avoid any costs. As those who file late no longer fall under the late filer category, you will now need to pay a Rs 25,000 surcharge to get back onto the list.
- To build up a history. Many banks, embassies and lenders will ask to see tax returns that have been filed.
- To declare your assets. You will need to file your wealth statement each year to show where your assets came from.
Requirements To File Nil Returns
You need to have an NTN and Iris Login.
- An active NTN (this will be your CNIC if you’re an individual).
- A password for the FBR Iris portal and your PIN.
If you have not registered yet please see our guide on how to register for a free NTN online.
No Taxable Income.
You had no taxable income or income below the taxable income threshold for the tax year (July-June).
If you had non-taxable income or final tax income, you can declare this, but you might not owe any tax.
Assets And Money.
- Bank Balances (IBANs) on 30th June.
- Cash.
- Property, Vehicle, Jewellery & Investments.
- Wealth Statement from last year (if you filed).
- Gifts/Family Support during the year.
How To File Nil Returns On The FBR Iris Portal.
Login.
- Navigate to the FBR Iris portal.
- Enter your CNIC/Registration number and password.
Filling In The Return.
- Click Declaration at the top.
- Click Return of Income for Individuals.
- Choose the correct tax year.
If you’re a salaried individual you will be shown a simple return. Please choose the correct form.
Entering Income (Zeros).
Leave the income boxes empty or put 0 in if you had no income.
If you had a little non-taxable income or bank profit, enter this into the relevant box.
Tax Refunds (Bank Profit, Mobile Bills etc.).
Check the computation section to ensure you do not owe any tax.
Wealth Statement (Form 116).
This is the most important part of filing your Nil Return.
Declare Your Assets.
- Bank Accounts (IBANs & Balances).
- Cash.
- Property, Vehicle & Other Assets.
- Any Liabilities (Loans).
Reconciling Your Wealth.
Your wealth statement needs to show where your wealth has come from in the year.
- Opening Wealth (Net Assets from previous year).
- Add any income or other income (gifts, family support etc.).
- Less any personal expenditure.
- Closing Wealth.
The total should equal 0 in Iris.
Example.
Many housewives will have no income but will have some personal expenditure which would be covered by their spouse/family.
- Enter how much was gifted/family support.
- Enter any personal expenditure.
- Ensure this equals your bank balance at the end of the year.
Verifying.
- Click Verification.
- Enter your 4-digit secure pin for the FBR system.
- Click Verify PIN. Submit.
Downloading Acknowledgement.
After submitting.
A few days after submitting, check your status on the Active Taxpayer List.
Text ATL (space) your 13-digit CNIC to 9966. Or see our guide on how to check your ATL status.
Common Mistakes To Avoid.
Do Not Hide Income.
Nil returns are not a way to hide your income.
The FBR will have information from your bank, property, vehicle and travel.
If you are regularly adding money to your bank account, buying a new car or travelling abroad whilst also filing a Nil Return this could cause an audit.
Any unexplained money can be added to your income under section 111 and taxed.
Do Not Forget Bank Accounts.
Any bank accounts linked to your CNIC will show up on the FBR.
Declare all of your accounts. Even if they are dormant or joint.
Do Not Forget To Reconcile.
If the total does not equal 0 your return will not be balanced.
Do not make up a cash amount.
Note where the money has actually come from (gifts, family support, savings etc.).
Do Not Ignore Small Amounts Of Income.
Even if its bank profit it is still income.
Declare this income and claim back the tax the bank has paid.
Do Not File Late.
The deadline for Tax Year 2026 is 31st October 2026.
If you file late, you will no longer be a filer until you pay the Rs 25,000 surcharge. You will also be charged a late filing penalty.
Do Not File Nil If You Have Income From A Business.
If you have a shop, sell online or are a freelancer (even part-time) you must declare this income.
Incorrect Nil returns could cost you much more than the tax you were trying to avoid.
Get Your Nil Return Filed Correctly.
Nil returns seem simple but the wealth statement will determine if the FBR accepts your figures or asks questions.
At TaxAccountant.pk we file Nil returns for housewives, students, freelancers, and new businesses every day. We ensure your wealth statement is reconciled and you are protected as a filer.
