Tax Services
Income Tax Return Filing in Karachigetting your annual return right the first time, not just filed
Every year, thousands of Karachi residents rush to file their income tax returns in the final week before the FBR deadline, often relying on whatever figures they can quickly assemble. That approach works until it doesn't — a mismatched bank statement, an unreported rental property, or an unexplained increase in assets can trigger a notice months later that takes far more time and money to resolve than the original filing would have.
At Sahar Law Associates, we prepare and file income tax returns under the Income Tax Ordinance, 2001 for salaried professionals, sole proprietors, partnerships, and private companies operating across Karachi, from SITE and Korangi industrial units to retail businesses on Tariq Road and professional offices in Clifton and DHA. Our work covers the return itself along with the wealth statement, reconciliation of assets, and any supporting schedules the return requires.
We treat return filing as a compliance exercise, not a paperwork formality. That means checking your NTN and CNIC details on IRIS are current, confirming your Active Taxpayer List (ATL) status is achieved on time, and making sure the numbers you file this year are consistent with what you filed last year and what your bank, employer, or business partners have reported to FBR independently.
Who this is for
Who needs this service
Employees with multiple income sources, foreign remittances, or property income beyond a single salary certificate.
Individuals running a business or providing services who must declare business income and expenses accurately.
Associations of persons that need a properly reconciled firm-level return in addition to partners' individual returns.
SECP-registered companies with a statutory obligation to file corporate returns regardless of profit or loss.
Overseas Pakistanis with property, bank accounts, or investments in Karachi who still have local filing obligations.
Problems we solve
What we take off your desk
- Return filed late or not filed at all, resulting in loss of filer status and higher withholding tax on banking transactions.
- Wealth statement does not reconcile with declared income, inviting a notice under section 122(5A) or 176.
- Rental income, capital gains on property, or dividend income left out of the return entirely.
- Previous year's return contains errors that were never corrected and now compound each filing season.
- Business owner mixes personal and business expenses without proper segregation in the accounts.
- Return prepared without checking withholding tax already deducted, leading to double taxation or a missed refund claim.
How it works
Our process, start to finish
Document collection and review
We collect bank statements, salary certificates, property records, and prior year returns, and review them for consistency before drafting anything.
Computation and reconciliation
We compute taxable income, adjust withholding tax already deducted, and reconcile your wealth statement with declared assets and liabilities.
Filing on IRIS
The return, wealth statement, and any required annexures are filed through the FBR IRIS portal under your NTN.
Acknowledgement and ATL confirmation
We confirm the filing acknowledgement and verify your name appears correctly on the Active Taxpayer List once processed.
What we need from you
Documents typically required
- CNIC copy and NTN registration certificate
- Salary certificate or business income summary for the tax year
- Bank statements for all accounts held during the year
- Details of property owned, purchased, or sold during the year
- Withholding tax certificates from banks, employer, or clients
- Previous year's filed return and wealth statement (if available)
- Details of any foreign income, remittances, or foreign assets
- Investment and utility bill records used for wealth reconciliation
If a document is missing, tell us — in most matters we can work from what you have and obtain the rest on your behalf.
Filing season in Karachi
Every autumn, FBR's IRIS portal slows to a crawl in the final days before the deadline, and Karachi taxpayers from Gulshan to Clifton end up filing in a rush that leaves little room to check figures properly. We start client files well before the deadline crunch precisely to avoid this, because a return filed calmly with time to verify numbers is far less likely to attract a notice later.
We also see a recurring pattern among Karachi's small business community: proprietors who are filers for the first time assume filing once is enough and forget that non-filing the following year drops them back off the ATL, undoing the benefit of lower withholding rates on vehicle registration, property transactions, and banking that filer status provides.
Deadlines and the cost of missing them
The statutory due date for individuals and AOPs typically falls at the end of September, and for companies at the end of December, though FBR does extend these dates in practice. Missing the deadline without a valid extension attracts a penalty under section 182 and removes you from the ATL, which immediately increases the withholding tax rate you pay on a wide range of transactions until the return is filed and processed.
Where a return is not filed at all, FBR can proceed to issue a notice under section 114 requiring the return, and in more serious cases move to a best-judgment assessment under section 121 based on whatever information it holds. Responding late to these notices narrows your options considerably, which is why we recommend addressing a missed filing the moment you become aware of it rather than waiting for the next notice.
Common mistakes we correct
The most frequent error we see is a wealth statement that simply doesn't add up — assets increase from one year to the next by more than the declared income could explain, usually because a gift, inheritance, or sale of an old asset was never properly recorded. We reconstruct these reconciliations carefully so the numbers hold up if FBR ever asks for an explanation.
We quote our fee for return preparation upfront once we understand the complexity of your income sources, before any work begins, so there are no surprises partway through the engagement. Straightforward salaried returns are priced differently from returns involving business income, multiple properties, or foreign assets.
Questions clients ask
Frequently asked questions
- Who is legally required to file an income tax return in Pakistan?
- Anyone with taxable income above the threshold, NTN holders, company directors, property owners above certain values, and vehicle owners above a specified engine capacity are among those required to file under the Income Tax Ordinance. We assess your specific situation to confirm whether filing is mandatory for you.
- What happens if I miss the filing deadline?
- You lose your place on the Active Taxpayer List, which means higher withholding tax on banking and property transactions, and FBR may levy a penalty under section 182. Filing late is still far better than not filing at all, so we recommend addressing it as soon as possible.
- Do I need to file if my employer already deducts tax from my salary?
- Yes, tax deduction at source does not remove the obligation to file an annual return if you meet the filing criteria. The return also lets you claim any refund due if excess tax was withheld.
- How do you handle a wealth statement that doesn't reconcile?
- We go through prior years' filings, bank records, and any gifts, loans, or asset sales that explain the movement, and build a reconciliation that reflects the true position. Where a genuine discrepancy exists, we advise you honestly on how to address it rather than papering over it.
- Can overseas Pakistanis file returns through your firm?
- Yes, we regularly handle filings for non-resident Pakistanis with property, bank accounts, or business interests in Karachi, coordinating remotely for document collection and signatures.
- Will filing this year automatically keep me on the ATL for future years?
- No, ATL status is determined afresh each tax year based on that year's filing, so a return must be filed every year to remain on the list continuously.
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