Salaried taxpayers must retain salary certificates showing income and tax deductions, while individuals earning rental, capital gains and other income must preserve supporting documents under the updated income tax rules.

The Federal Board of Revenue (FBR) has prescribed minimum record-keeping requirements for salaried individuals and other taxpayers earning income from property, capital gains and other sources during tax year 2027.

The FBR issued the Income Tax Rules, 2002, updated up to September 15, 2026, for tax year 2027, covering the period from July 1, 2026, to June 30, 2027.

Under Rule 31, taxpayers deriving income under these heads must maintain specific documents and records to support their declared income and deductions.

Salary income: Individuals earning salaries must maintain a salary certificate showing the amount received and income tax deducted.

Property income: Taxpayers earning rental income must preserve tenancy and termination agreements, where applicable, rent receipts and evidence of deductions claimed. These include insurance premiums, local taxes, ground rent, interest on borrowed money, collection expenses and legal costs.

Capital gains: Individuals must retain evidence of the acquisition cost of capital assets, other expenses claimed as deductions and consideration received from their disposal.

Other sources of income: The rules require dividend warrants, royalty agreements and evidence of profit on debt and tax deducted. Relevant bank statements, Zakat deduction records and lease agreements must also be maintained.

Taxpayers receiving annuities or pensions must retain evidence of amounts received. Similarly, prize winners must preserve income and tax deduction certificates.

The rules also require supporting agreements for income from the use or exploitation of property.

Furthermore, evidence of loans, advances, deposits and gifts must establish receipt through crossed cheques or banking channels.

Taxpayers must also preserve supporting documents for any other expenditure claimed as a deduction.

The requirements establish minimum documentation standards for individuals to substantiate income declarations and deductions under the income tax framework for tax year 2027.