Reporting Rental Property Income in the New IRIS Return
If you earn rent from a residential, commercial, or other property, that income goes into the Property section of the return – select it as an income source on the Return Prerequisites screen if you haven’t already. For tax year 2025 onward, FBR requires all property details to be entered in a structured format rather than a single lump-sum figure, so the process below has a few more steps than it used to.
For the full return walkthrough from login to submission, see our step-by-step guide to filing your income tax return online.
Step 1: Add or Confirm Your Property
Go to the Property section and select Receipts/Deductions, then click “+ Property.” A pop-up shows properties you declared in previous tax returns.
- Properties highlighted in yellow were declared before with an incomplete address – you’ll need to complete the address details before you can use them in this year’s return.
- Click the edit icon to open the Property Information window, fill in the missing details, and click Update.
- Select the property from the list and click Add to bring it into your current return.
If you didn’t declare this property in a previous return, clicking “+ Property” instead opens a window letting you pull the property in from your Wealth Statement/Balance Sheet (if you’re a resident) or the Immoveable Property tab (if you’re a non-resident).
Step 2: Enter Rent Received
Once the property is added, enter the total rent received for the tax year, then click Calculate to work out your income or loss from that property. After this calculation runs, the system locks the property’s core details from further editing – you’ll see the edit icon open a pop-up with the fields disabled. This is intentional: FBR wants the underlying property record fixed once income has been calculated against it.
Step 3: Add Deductions
Click “+ Deductions” to record expenses related to the property – things like repairs, property tax, or insurance, depending on what’s admissible under the rules. Select the applicable deduction type from the list and click Add. It’ll appear under Total Deductions. Enter the relevant amounts, click Calculate, then Next.
Step 4: Adjustable Tax Against Property
On the Tax Deductions tab, enter any adjustable tax already deducted against your property income – for example, tax withheld by a tenant or agent. Click Calculate, then Next to move to your following income module.
What If You Sold or Gifted the Property?
A property declared in a previous tax year can’t simply be deleted from the system. If you no longer own it, you need to declare it as Sold or Gifted rather than trying to remove the entry – this keeps your asset trail consistent with your Wealth Statement.
Common Mistakes We See With Property Income
- Leaving a previously-declared property’s address incomplete. The yellow-highlighted warning is easy to skip past, but an incomplete address will keep blocking that property from being used properly in later returns too.
- Forgetting to add deductions before calculating. If you calculate income first and add deductions after, go back and re-run Calculate – the numbers don’t always update automatically.
- Trying to delete a sold property instead of declaring it Sold. This causes mismatches against your Wealth Statement reconciliation later in the return.
- Missing adjustable tax already withheld by a tenant or agent, which results in paying tax you’ve effectively already had deducted.
FAQ
Do I need to report rent from a property I only owned for part of the year?
Yes – report the rent actually received during the tax year, regardless of how many months you owned the property.
What if I have more than one rental property?
Add each property separately through the same “+ Property” process. Income and deductions are tracked per property, then combined into your total property income.
Is property income taxed the same way as salary income?
No – property income follows its own rate structure and admissible deductions, which is why it has its own module in the return rather than being combined with Employment income.
