On August 18, 2025, the Federal Board of Revenue (FBR) issued SRO 1561(I)/2025 to officially notify the new ‘simplified’ return of income form for tax year 2025.
The form, now available on the IRIS portal, is designed to make compliance easier, but taxpayers must still pay close attention to the details. Let’s take a step-by-step look at how this simplified process works and what it means for you.
🗓 Filing Deadline
The FBR has fixed September 30, 2025 as the deadline for filing. The tax year 2025 cycle covers the period from July 1, 2024, to June 30, 2025. Individuals who stayed in Pakistan for 183 days or more during this period are required to file under the simplified form.
👨💼 Step 1: Salary and Pension Details
• Salaries are prefilled based on employer data.
• Taxpayers must verify their employer’s NTN, receipts, and any deductions.
• Pensions are separately mentioned on the third page and also require confirmation.
🏠 Step 2: Declare Other Income
This includes:
• Rent from property
• Payments for services
• Bank profits, dividends, and other receipts
💳 Step 3: Withholding Adjustments
The form provides blocks to adjust taxes deducted at source, such as:
• Salary tax already withheld
• Cash withdrawal taxes
• Debit/credit card transactions
• Mobile phone and internet usage charges
There are also sections for minimum and final tax obligations.
🎁 Step 4: Tax Reliefs and Credits
The interactive feature of the return asks questions to determine eligibility for:
• Tax deductible allowances
• Reductions
• Credits
This step ensures that you don’t miss out on potential savings.
🏦 Step 5: Bank Account Verification
Taxpayers must re-enter bank account details and provide closing balances as of June 30, 2025. Interestingly, prefilled data will show all accounts linked to the taxpayer’s name. If multiple accounts exist, you will be prompted to confirm balances, adding a transparency layer to the filing.
🏘 Step 6: Property and Assets
• Declare property details and their fair market value.
• Identify assets and liabilities.
• An option allows taxpayers to select a property for exclusion from deemed taxation.
💸 Step 7: Inflows and Outflows
The final section asks for details of money inflows and outflows during the tax year, ensuring consistency with declared income and assets.
✅ Bottom Line: The FBR’s 2025 return is more interactive than before, and while termed “simplified,” it still requires careful review. Taxpayers should log in early, verify prefilled information, and ensure accuracy before submission.