Frequently Asked Questions About The New IRIS Income Tax Return
The frequently asked questions below are based on the commonly asked questions of taxpayers about the newly launched modular Income Tax Return, organized by section. If you are new to the new IRIS interface, please check out our step-by-step guide to filing your income tax return online.
General
Who can use the updated Income Tax Return system?
Individual taxpayers, tax practitioners and authorized representatives can use it to file Income Tax Returns.
What is the purpose of the updated ITR system?
It provides a structured approach to collecting, processing, calculating and submitting taxpayer information with categorized modules.
What’s the meaning of “structured data input” in the new ITR?
Your information will be captured through pre-defined fields and sections, ensuring consistency and accuracy in your data.
What’s the benefit of the modular approach?
Tax information is organized into dedicated sections enabling you to proceed systematically and managing your data more easily.
Do I have to complete every section of the return?
No, only the sections relevant to your sources of income and taxpayer profile need to be completed.
Can I save my return and finish it later?
Yes, you can save your progress and go back later to edit your submission before final submission.
Why are some fields marked as mandatory?
mandatory fields need to be completed before proceeding for successful submission.
What should I do if the required section is not displayed?
Check that you have selected the relevant income source or taxpayer information on the Return Prerequisites screen as some sections only appear when they are applicable.
Income & Employer Information
What types of income can be reported in the ITR?
Employment, Property, Business, Capital Gains, Other Sources, Foreign Sources, and Agriculture Income are all supported.
Can I report income from multiple employers?
Yes, the system allows you to report your income from multiple employers where applicable. For more information, please refer to our guide to reporting salary income in IRIS.
What information is required for employer details?
An employer’s registration information (NTN) and name are required to maintain your salary records.
How is salary information processed?
Salary information is captured using structured fields, with applicable calculations being run automatically based on what you enter.
Are salary-related tax deductions entered separately?
Yes, they are recorded separately from your income figures to ensure accurate tax calculation.
Property Income
What type of income is covered by Property Income?
Income earned by renting or leasing residential, commercial or other immovable properties. For more information, please refer to our guide to reporting property income in IRIS.
What information is required to add a property?
Property ownership and other required property details need to be entered.
Can I add more than one property?
Yes, multiple properties can be added to the Property Income section.
Can previously declared properties be removed?
No, they cannot be removed directly. They can only be updated by selecting the appropriate status such as Sold or Gifted.
What deductions can be claimed against Property Income?
Allowable deductions related to property income can be recorded in the appropriate deductions section.
Business
What business information can be reported in the ITR?
The Business section covers revenue, expenses, deductions, adjustments, tax details, manufacturing/trading information and balance sheet information. Please see our guide to reporting business income in IRIS.
Can I add multiple businesses in one return?
Yes, multiple businesses can be added through the Business Detail section.
What is the purpose of the Manufacturing/Trading Items section?
It captures information relating to manufacturing and trading activities specifically.
What types of business expenses can be recorded?
Administrative, management, selling, financial and other allowable business expenses.
What are the admissible and inadmissible deductions?
Admissible deductions are allowable expenses that reduce your taxable business income. Inadmissible deductions are expenses that are not allowed for the purpose of tax calculations.
What is the purpose of the Business Adjustments?
They record the changes required for the accurate computation of your taxable business income.
What is the purpose of the Balance Sheet section?
It records business assets, liabilities, bank accounts and other financial information that reflects the financial position of your business.
Capital Gains
What assets are covered by Capital Gains?
Gains from securities, shares, immovable property, mutual funds and other capital assets. Please refer to our guide to reporting capital gains in IRIS.
Can capital gains for different assets be reported separately?
Yes, separate capital assets and properties can be added and reported individually under the Capital Gain section.
Other & Foreign Sources
What income is included under Other Sources?
Dividends, profit on debt, royalties, prizes, winnings, annuities and other taxable income not classified under another head. Please refer to our guide to reporting other sources income in IRIS.
How is foreign income reported?
Foreign salary, property income, business income, capital gains and other foreign income are each reported in their own dedicated sections. Please refer to our guide to reporting foreign income in IRIS.
What types of foreign income can be declared?
Foreign salary, foreign property income, foreign business income, foreign capital gains and other foreign income.
Why is a Foreign Tax Identification Number required?
It is used to record and identify your foreign tax related information correctly.
Agriculture
What is included in Agricultural Income?
Earnings from cultivation, agricultural produce, orchards, crops, and other farming related activities. Please refer to our guide to reporting agricultural income in IRIS.
Why is agricultural property information required?
It links your agricultural income to the relevant agricultural property.
Tax Computation & Payments
What is the purpose of the Tax Chargeable / Payments section?
It determines your final tax liability, taking into account allowances, reductions, tax credits, withholding taxes, and other applicable calculations.
What are Tax Credits?
Allowable reductions in your tax liability, subject to applicable legal provisions.
What is the purpose of the Computation section?
It calculates your tax liability based on everything you have entered throughout the return.
Why is my tax not updating?
You may need to click Calculate after entering or updating information in the applicable section to get the tax computation updated.
Is it necessary to click Calculate in every applicable section?
Yes, clicking Calculate updates the values ensuring accurate computation before you proceed to enter information in the next section.
Wealth Statement
What is the purpose of the Wealth Statement?
It records your assets, liabilities and changes in net worth during the tax year.
What information is included under Foreign Assets / Liabilities?
Financial assets and liabilities held outside Pakistan that you are required to declare.
What is the purpose of the Net Asset Reconciliation?
It compares your inflows, outflows and changes in your assets to ensure the declared wealth information is consistent.
Why is an Unreconciled Amount displayed?
It displays when your declared inflows, outflows, assets and liabilities do not reconcile. See our guide to fixing an unreconciled amount in your Wealth Statement for a full troubleshooting walk-through.
What should the Unreconciled Amount be before submission?
It must be 0 before the return can be submitted.
Submission, Revision & Technical Assistance
Can I edit information before submitting the return?
Yes, you can modify any information before submitting the return.
What happens if incorrect information is entered?
It may result in validation errors or an inaccurate tax computation. Review all information carefully before submitting.
Why am I unable to submit my return?
Ensure that all mandatory fields are completed, validation errors have been resolved, required calculations have been run (Calculate clicked where needed) and your Wealth Statement is fully reconciled.
How do I know my return has been submitted successfully?
The system displays a confirmation message and the filed return becomes available in your account.
Can I submit a revised return after filing?
Yes, using the Return / Statement Revised option, subject to applicable tax laws. Please see our guide to filing a revised income tax return in IRIS.
What’s the difference between a Voluntary Return and a Revised Return?
A Voluntary Return is your original return for a tax period, a Revised Return is filed after to correct or update information in that return.
Can I file a return in response to an FBR notice?
Yes, select the relevant notice from your Inbox and follow the prescribed filing procedure. Please refer to our guide to responding to an FBR tax notice in IRIS.
What file format can be uploaded as an attachment?
Supporting documents can be uploaded in PDF format, where applicable.
