Filing a tax return in Pakistan isn't just for businesses or high-income earners. Even ordinary citizens, employees, and retirees might be legally required to file based on various real-life factors. Let’s make this simple with everyday examples you can relate to.
📅 Deadline to File
The last date to file your tax return for Tax Year 2025 (July 2024 to June 2025) is September 30, 2025. An extension might be announced, but don’t depend on it—always aim to file on time.
✅ Who Must File a Tax Return?
1. Registered Companies
Definition: Any company registered with SECP or FBR must file—regardless of earnings.
Example:
Ali opened a company for his IT services in Karachi but didn’t get any clients in 2025. He still must file a return, even with zero income.
2. Salaried Individuals (Above PKR 600,000/year)
Definition: If your annual salary exceeds PKR 600,000 (that’s PKR 50,000/month), you are required to file.
Example:
Maria works in a private bank earning PKR 70,000/month. She’s salaried and must file a tax return, even though tax is already deducted from her salary.3. Business Individuals (Profit Over PKR 600,000)
Definition: Anyone running a business with profit over PKR 600,000/year must file.
Example:
Tariq runs a mobile shop in Lahore and earned around PKR 800,000 profit this year. He’s not registered, but since his profit crosses the limit, he must file.
4. Paid Tax in Last Two Years
Definition: Even if you earn less this year, but filed or paid tax in the last two years, you must still file.
Example:
Sana had a good job in 2023 and filed her return. In 2025, she’s a housewife with no income. But since she paid tax previously, she must still file a return for 2025.
5. Owns Property (500 sq. yards urban / 2000 sq. ft flat)
Definition: People owning significant property need to file—even with no income.
Example:
Khalid owns a 600 sq. yards house in DHA Karachi, but he’s retired and doesn’t work. Still, due to his property size, he must file a return.
6. Owns a Vehicle Above 1000 CC
Definition: Vehicle ownership can trigger filing responsibility.
Example:
Ahsan owns a Toyota Corolla 1.3L (1300 CC). Even if he earns nothing, he must file due to his car's engine size.
7. Holds an NTN (National Tax Number)
Definition: Anyone who registered for an NTN needs to file—even without income.
Example:
Bilal applied for NTN to start a freelance business but didn’t get clients. As long as his NTN is active, he must file. He can apply to cancel the NTN if not using it anymore.
8. Has a Commercial/Industrial Electricity Meter
Definition: If your name is on a non-residential electricity meter, you're required to file.
Example:
Naeem opened a workshop in Faisalabad but shut it down later. His commercial meter still exists in his name. So, he must file until it's removed.
.png "Holds an NTN (National Tax Number)")
9. Receiving Foreign Income While in Pakistan
Definition: Residents earning from abroad (like freelancers, remote jobs) must file.
Example:
Iqra works online for a UK-based company while living in Islamabad. She gets her salary in her local account. She must file due to foreign-sourced income.
10. Member of Chamber of Commerce
Definition: If you're registered with a chamber, it’s compulsory to file.
Example:
Shahid runs a garment store and is a member of the local Chamber of Commerce. Even if he had a slow year, filing is still mandatory.
11. Pensioner Owning Assets (Car or Property)
Definition: Pension income may be tax-free, but owning taxable assets can trigger the filing requirement.
Example:
Rashid, a retired government officer, owns a Prado (2800 CC) and a rental flat in Lahore. Though his pension is tax-exempt, his assets require him to file.
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❌ Who Is Exempt From Filing?
Some people are conditionally exempt, but only if they meet all exemption criteria.
1. Non-Residents With No Pakistan-Based Income
Example:
Noman lives and works in Dubai and has no income, bank account, or property in Pakistan. He does not need to file.
2. Orphans (Under 25, With No Income)
Example:
Zoya is 22, lost her parents, and owns a small inherited flat. She doesn’t earn or work. She’s not required to file.
3. Widows Without Income
Example:
Mrs. Ahmed is a widow who owns her late husband’s house but does not work. She is exempt, unless she starts earning.
4. Disabled Individuals With No Income
Example:
Imran has a disability and lives in a property gifted by relatives. He does not work or earn. He’s not required to file unless income starts.
5. Pensioners Without Other Assets
Example:
Mr. Aslam receives only pension and owns no vehicles or extra property. He is not required to file.
.png "Who Is Exempt From Filing")
🔚 Conclusion
Still confused whether you need to file or not? Here’s a rule of thumb:
If you earn, own, or have registered anything valuable (like a car, property, or NTN)—you should file.
Avoiding tax filing can result in:
Fines
FBR notices
Being removed from ATL (Active Taxpayer List)
Visa and loan rejection
Filing isn’t hard—but not filing can cost you more.
❓Quick FAQs
1. Can I file even if I didn’t earn anything?
Yes, you can file a “zero return” to stay compliant.
2. What if I don’t file, but I own a car?
You’ll likely get a notice and pay penalties.
3. Can freelancers earning from abroad skip filing?
No. If you live in Pakistan, foreign income must be declared.
4. Is filing required if I paid tax last year?
Yes. You must file for this year too.
5. Do retired people need to file?
Only if they own vehicles or property above the specified limits.