How to File Your Income Tax Return with FBR 2020 Latest Update.
How to File Your Income Tax Return: To complete online Income Tax Return, a person must complete the Return of Income form and Wealth Statement (statement of assets & liabilities) form.
Successful submission of Income Tax Return and Wealth Statement in Iris is confirmed when both the forms have moved from the Draft folder to Completed Task.
FILING INCOME TAX RETURNS
If you’ve got a job with a regular paycheck, you’re almost certainly already paying taxes. While your employer withholds the taxes you owe on your earnings/income and sends them to the federal government, there’s a lot more to do with the process to make sure you’re paying taxes appropriately.
For starters, your payroll withholding usually isn’t exactly right: The decisions you make when you set up your payroll withholding at the beginning of your employment can result in you under or excessively paying your taxes.
Further, you may be able to reduce the taxes you owe and thus, get a refund on taxes you already paid by taking certain deductions or credits provided for in the tax law. On the flip-side, you might have additional income not included in your paycheck that you’re legally required to report, and which may result in you owing more in taxes.
The result of all this is that you’re required to file a tax return every year. Through this process, it’s determined whether you owe additional taxes beyond what you’ve already paid to the federal government, or if you’re owed a refund of the taxes you’ve already paid.
There are two methods for filing an Income tax return.
Manual Filing of Income Tax Return
Download the Income Tax Form from FBR Website.
Fill out Personal Particulars, Source of Income, Business/ Personal Expenses, Taxes, and deductions, etc for Income Tax Return and Assets, Liabilities with reconciliation for Wealth Statement during the relevant Tax Year.
After completing those forms sign and submit in the relevant Department. Remember to keep an acknowledgment of the same.
Online Filing/ E-File of Income Tax Return
For Filing Income Tax Return, Taxpayers have valid NTN. The taxpayer registers his details with FBR to create a login on IRIS. After registration with FBR, Taxpayer has access to the system for filing his Income Tax Return in FBR. The taxpayer made his login in FBR System and completes all the information required by FBR and submit his Income Tax Return and Wealth Statement.
REVISING INCOME TAX RETURN
An Income Tax Return can be revised within five (5) years of being originally filed to correct any omission or wrong statement discovered later on.
In order to revise the Income Tax Return filed, one has to file an application for revision in Iris. After approval of your application, you can file a revised Income Tax Return in Iris.
RECONCILIATION OF WEALTH STATEMENT
Wealth Statement will only be successfully submitted, once the current year’s wealth has increased/decreased from the previous year’s wealth by the same amount as your income has exceeded/fallen short of your expenses. Failure to reconcile wealth statements won’t allow you to submit your Income Tax Return.
SALARIED PERSON – INCOME TAX RETURN
To facilitate a salaried person in filing their Income Tax Return, Declaration form 114(I) has been provided. A salaried person would need to complete the Declaration form 114(I) in order to successfully submit their Income Tax Return.
Persons who are deriving income only from salary and other sources, where salary is more than 50% of Income can avail of this form.