Becoming a filer for salaried persons is no longer a choice but a necessity in Pakistan’s evolving economic landscape. If you are an office employee receiving a monthly salary, being a filer not only fulfills your national duty but also saves you thousands of rupees in withholding taxes on banking transactions, vehicle purchases, and property deals.
In this comprehensive guide, we will walk you through every single detail—from NTN registration to submitting your final wealth statement—ensuring you don’t need to hire an expensive tax consultant
Before diving into the “how,” let’s understand the “why.” For a filer for salaried persons, the benefits are immense:
- Reduced Withholding Tax: Non-filers pay double the tax on bank withdrawals and profit on debt.
- Vehicle Purchase: Save significantly on registration fees and annual token tax.
- Property Transactions: Half the tax rate compared to non-filers.
- Global Credibility: Essential for visa processing for many countries.
Prerequisites for Filer Registration
Before you start the process of becoming a filer for salaried persons, keep these documents ready:
- CNIC Copy: Your primary identification.
- Salary Certificate: Issued by your HR/Finance department for the tax year (July to June).
- Electricity Bill: For your latest address verification.
- Bank Account Statement: From July 1st to June 30th.
- Personal Assets Details: Gold, property, vehicles, and cash in hand.
Step 1: NTN Registration on FBR Iris Portal
To become a filer for salaried persons, the first step is obtaining a National Tax Number (NTN).
- Visit the FBR Iris Portal.
- Click on “Registration for Unregistered Person.”
- Fill in your CNIC, mobile number (registered in your name), and email.
- Enter the OTP codes received on your phone and email.
- Once registered, you will receive your password and PIN via SMS.
Step 2: Understanding the Income Tax Return Form
After logging in, you need to select the correct form. For a filer for salaried persons, you usually need to file Form 114(1) (Return of Income filed voluntarily).
Go to: Declaration > 114(1) (Return of Income filed voluntarily for complete year).
Select the Tax Year (e.g., 2025, 2026).
Step 3: Declaring Salary Income and Taxes
This is where your salary certificate comes into play.
- Employment Section: Enter your total annual gross salary.
- Tax Exemptions: If you have any tax-exempt allowances (like medical up to 10%), mention them.
- Tax Deducted: Go to the “Adjustable Tax” section and enter the tax your office already deducted from your salary. This ensures you don’t pay the same tax twice.
Step 4: The Wealth Statement (Form 116)
A filer for salaried persons must also file a Wealth Statement. You must declare everything you own:
- Property: Home, plots, or shops (at cost price).
- Vehicles: Car or bike (at purchase price).
- Investment: Stocks, insurance policies, or bonds.
- Household Items: Estimated value of furniture and electronics.
Step 5: Wealth Reconciliation – The Most Critical Part
Most people fail here. Your wealth must reconcile.
Formula: Previous Year’s Wealth + Current Year’s Income – Personal Expenses = Current Year’s Wealth.
If the “Unreconciled Amount” is not Zero, you cannot submit your return. You must account for every rupee earned and spent.
Step 6: Checking Your Name on the Active Taxpayer List (ATL)
Filing the return isn’t enough. To officially become a filer for salaried persons, your name must appear on the ATL.
- If you file within the deadline, your name is added automatically.
- If you file late, you must pay a “Surcharge for ATL” (usually Rs. 1,000 for individuals) via a Challan.
Common Mistakes to Avoid
- Wrong Tax Year: Always ensure you are filing for the current active cycle.
- Ignoring Bank Taxes: Don’t forget to claim tax deducted on your phone bills or bank transactions.
- Mismatched Assets: Ensure your declared assets match your lifestyle and income.
Conclusion
Becoming a filer for salaried persons is a straightforward process if you follow these steps diligently. It empowers you financially and legally. Start today by gathering your salary slips and registering on the Iris portal.
Frequently Asked Questions (FAQs)
Ans: A “Filer” is an individual whose name appears on the Active Taxpayer List (ATL) of the Federal Board of Revenue (FBR). A filer for salaried persons refers to an office employee who declares their annual income and assets to the FBR by filing an income tax return, even if their tax is already deducted by their employer.
Ans: According to Pakistani tax laws, you are considered a salaried person if at least 75% of your total annual income is derived from salary. If you have a small side business but your salary makes up the bulk of your earnings, you will still follow the filer for salaried persons registration process.
Ans: To complete the process smoothly, you should have the following:
Original CNIC.
A mobile number registered in your own name.
A personal email address.
Salary Certificate or salary slips for the full tax year (July to June).
A recent paid electricity bill for address verification.
Ans: No, a separate National Tax Number (NTN) is no longer required for individuals. Your 13-digit CNIC acts as your NTN. However, you must register this CNIC on the FBR Iris portal to begin your journey as a filer for salaried persons.
Ans: You simply need to visit the Iris FBR website and select the “Registration for Unregistered Person” option. After providing your CNIC and contact details, you will receive a 6-digit OTP via SMS and email to activate your account.
Ans: The benefits are financial and legal:
You pay 50% less withholding tax on bank transactions and profits.
Significant reduction in taxes when purchasing or registering a new vehicle.
Lower tax rates on buying, selling, or transferring property.
Tax deducted on mobile bills and electricity can be adjusted or refunded.
Ans: While consultants are available, our step-by-step guide for office employees is designed to help you do it yourself. The Iris portal has been simplified, and for most salaried individuals with a single source of income, the process is straightforward and free of cost.
Ans: A Salary Certificate is a document issued by your employer stating your total gross salary and the total tax deducted at source (under Section 149) during the tax year. It is the primary evidence used when filing as a filer for salaried persons.
Ans: FBR does not charge any fee for registration or for filing a tax return. It is completely free. However, if you miss the annual deadline, you must pay a “Surcharge for ATL” (Rs. 1,000 for individuals) to make your status “Active” on the list.
Ans: Generally, the deadline for a filer for salaried persons to submit their return is September 30th of every year. FBR may grant extensions, but it is always best to file before this date to avoid penalties.
