Every year, thousands of Pakistani taxpayers make mistakes on their income tax returns. Some of these mistakes trigger FBR notices. Others delay refunds. A few can even lead to penalties. Here are the seven most common filing mistakes and how to avoid them.
1. Incorrect NTN or Personal Details
The most common mistake is entering a wrong NTN number or mismatched name. Your CNIC name must match your FBR registration exactly. A single spelling difference can cause your return to be rejected. Double check your NTN certificate before you start.
2. Forgetting to Declare Bank Profit
Many people forget to add profit on saving accounts. Banks report this to the FBR. If you leave it out, the system will flag a mismatch. Your bank statement shows the exact profit amount. Add every rupee.
3. Omitting Secondary Income Sources
Freelance income, rental income, dividend income, and capital gains all need to be declared. The FBR has access to data from banks, brokers, and property authorities. Undeclared income is one of the top reasons for audits.
4. Not Claiming Allowable Deductions
Many taxpayers overpay because they do not claim deductions they qualify for. Common deductions include Zakat, charitable donations, education expenses, and medical insurance premiums. Keep your receipts and claim everything you are entitled to.
5. Filing Under the Wrong Status
Your filing status matters. Salaried individuals pay lower rates, but only if salary exceeds 75% of total income. If business or other income crosses 25%, the higher business rates apply to your entire income. Choose the wrong status and you could overpay or face a notice.
6. Missing the Deadline
The FBR tax return deadline is typically September 30 each year. Filing late means a penalty of PKR 1,000 to PKR 20,000 depending on your income bracket. File on time and save the penalty.
7. Not Verifying Before Submitting
Always review your wealth statement and income summary before hitting submit. Common errors include wrong bank account details for refunds, missing signatures on digital forms, and incorrect tax year selection.
Avoiding these mistakes is easy when you have an expert reviewing your return. Our tax filing service includes a complete review before submission.