The Federal Board of Revenue (FBR) has introduced a simplified electronic income tax return form for the fiscal year 2025, following a 40-day consultation period. The primary goal of this new form is to enhance transparency and simplify tax compliance for individual taxpayers, especially salaried individuals, small traders, and other taxpayers. It aims to streamline the filing process, making it easier for all involved.
The new form, available only in English despite earlier promises of an Urdu version, features eight user-friendly digital windows with single-input columns for step-by-step filing. Its automated system integrates data on tax deductions, including:
- Employer deduction details, triggered by entering the employer’s name.
- Withholding taxes linked to a filer’s CNIC.
- Bank account information for seamless reporting.
Taxpayers exceeding income thresholds are directed to the standard filing system. The FBR also issued simplified e-return forms for companies, Associations of Persons (AOPs), and professionals via SRO 1562 of 2025.
The FBR has mandated that overseas Pakistanis with assets abroad file an Electronic Foreign Income and Assets Declaration, covering rental properties, business income, bank accounts, and investments. This ensures compliance with global tax transparency standards.
The deadline for submitting income tax returns is September 30, 2025. Taxpayers can access the form via the FBR’s online portal and are urged to file early to avoid penalties. The simplified system aims to reduce errors and make compliance accessible for all eligible filers.
The FBR’s initiative aligns with Pakistan’s economic reforms, promoting a user-friendly tax system to boost compliance. By integrating automated data and simplifying forms, the FBR seeks to enhance transparency and support taxpayers, particularly small traders and salaried individuals, in meeting their obligations.
