Yearly Archives: 2025

In today’s digital era, tax management in Pakistan has become less complex because of the FBR systems. In other words, making a tax payment is not that difficult. All you need to do now is create an FBR tax payment challan (Online / Offline). This guide is going to detail your step-by-step process on how to get your FBR challan form (just like below image) via e-Payments system within the taxpayer facilitation portal. If you are searching for FBR tax payment challan online, then you are at the right place. We will discuss everything from the requirement to confirmation below. 

The generation of an income tax challan or sales tax challan for FBR payment can facilitate a taxpayer to comfortably pay dues such as income tax, and sales tax without having too much inconvenience. The mechanism will use FBR’s website for hassle-free and fast transactions.  

What is an FBR Tax Payment Challan?  

The FBR Tax Payment Challan is produced by the FBR system and is used for depositing income tax, sales tax, or any other government dues. It is the proof of payment which is required for submitting taxes at banks or on the internet. 

Earlier, taxpayers had to physically go to the bank to deposit taxes. At Present, via FBR e-Payment’s system the Taxpayers including public as well as private organizations or institutions can prepare the Challans Online and after making visits of few clicks can submit their challan. 

Types of FBR Challans  

• Income Tax Challan (CPR): Payment for income tax, advance tax and withholding tax by an individual, company or AOP. 

• Sales Tax Payment Challan: In the case of businesses registered under sales tax due to whom monthly or quarterly sales tax liabilities are required to be deposited. 

• Federal Excise Duty Challan: Applicable for parties who are manufacturers or importers of excisable goods. 

 

Prerequisites for Generating Your FBR Tax Payment Challan 

Before getting down to business, make sure you have the following key components: 

• Availability of the official FBR website (e.fbr. gov.pk) via any web browser. 

• A valid tax profile of the taxpayer which includes the NTN or CNIC. 

• Type of Tax, such as pay income tax, sales tax payment challan or federal excise duty. 

• A working email and phone number for notifications. 

• Bank account or ATM to use for paying the taxes online. 

These are the pre-requisites necessary for a hassle-free taxpayer experience on Fbr tax payment via Taxpayer Facilitation Portal. 

Step 1: Accessing the FBR e-Payments Portal 

Visit the official website of FBR e.fbr. gov.pk. You don’t have to login for this first step, just click on the ‘e-Payments’ tab above. It will show a dropdown with tax types such as pay income tax and sales tax payment challan. This is the first step in order to generate your FBR tax payment challan. 

For perspective, here’s what the FBR e-Payment’s portal entrance typically looks like. 

Step 2: Selecting the Payment Type 

Once at e-Payments, you’ll select the type of tax on which you wish to make a payment (for example, income or sales). Choose the tax year from the drop-down box. Fill in your taxpayer details (NTN/CNIC etc.) and it will auto-populate your name for you. Correctness is important here to prevent mistakes in your FBR challan form. 

Step 3: Generating the Payment Slip ID (PSID) 

Next, choose “Tax Payment Nature” from the dropdown. This option identifies which type of tax you are paying (i.e., pay income tax or sales tax payment challan). Enter your payable tax amount (you can get from IRIS filings), email and mobile number for any alerts. Choose the mode of payment as “ADC e-payment” for online tax payment. Once you have double-checked all entries, click on ‘Create’ to create your PSID (Pakistan System of Integrated Declaration), a unique identifier for your FBR tax payment challan. 

Step 4: Making the Online Tax Payment 

Once you have your PSID, jump to paying through any of the other means: 

• Internet Banking: Log in to your internet banking, go to service > fund transfer > others, select the payee ‘FBR’, then enter PSID and verify transaction details and confirm. 

• ATM: Click on ‘Bill Payments’, then click on ‘FBR’ and enter PSID and make the payment. 

This is how you generate FBR tax payment channels online and choose to make your payment through secure channels. 

Step 5: Confirmation and Record Keeping 

Then after you have made the payment, print directly from the portal or save transaction details to get your new slip. Check on the FBR website with your PSID to make sure everything has been processed. Maintain a record of your FBR challan form for future use, audit or compliance. 

This guide makes it very easy to generate and make payment through an FBR tax payment challan and helps the user in ensuring that they file for a Pakistan tax on time. If you face any problems, follow the official Taxpayer Facilitation Portal or FBR helpline: Keep it legal and avoid online tax payment frustration! 

 

Benefits of paying taxes through the FBR e-payments system 

• 24/7 Accessibility: Make tax payments anytime, anywhere without visiting banks. 

• Instant Confirmation: Receive your Computerized Payment Receipt (CPR) immediately after payment. 

• Convenience: Fully online and paperless process through the Taxpayer Facilitation Portal. 

• Secure Transactions: Payments are processed through verified, encrypted banking channels. 

• Integrated Record Keeping: All payments are automatically linked to your NTN for tracking and future reference. 

• Multiple Payment Options: Pay via internet banking, mobile app, ATM, or credit/debit card. 

• Timesaving: No need for manual challan submission or long bank queues. 

• Improved Compliance: Ensures timely and accurate FBR tax payments for individuals and businesses. 

 

Conclusion 

Knowing how to create an FBR Tax Payment Challan is important for those who want to comply with the tax laws of Pakistan. With the launch of e-Payments and Taxpayer Facilitation Portal, FBR has ensured that paying income tax and sales tax payment challans online has never been easier without having to wait in long queues. 

If you are not sure of the various types of tax or calculations, please feel free to contact a professional tax advisor or require Income Tax Return Services for smooth compliance. 

Deadlines have a way of sneaking up on you, and nothing encapsulates this better than the feeling you get around tax season when it comes time to file extension for filing tax returns. Racing against the FBR clock for your Income Tax Return this year, this is a 5-minute guide that turns panic into a plan. Let’s unlock the precise steps, deadlines, and pro tips, so you never have to pay a single rupee in late fees. 

Understanding Filing Tax Returns  

Before we get to the extensions, let’s take a look at what filing tax returns are. Income Tax Return is a form you fill out to let the government know how much money you earned, spent and paid in taxes for any given year. It makes everything transparent, rather for FBR to calculate your taxable income properly. 

Pakistan citizens, salaried people, companies and businesses must file returns on time as filed by deadline is September 30 every year (subject to FBR notification in this regard). Late filing may result in penalties and warnings of legal action or limitations to financial transactions. 

When You Might Need a Filing Extension 

You may request to File an Extension in Time for Filing Tax Returns if: 

• You are awaiting necessary financial statements or audit reports. 

• You could not generate documentation for health or travel reasons. 

• Your accountant or financial adviser has asked for an extension to put your accounts together. 

• Your trade got delayed or had problems due to unforeseen delays in the FBR portal. 

Filing an extension for the Income Tax Return doesn’t relieve you from paying taxes, but it provides more time to properly file your ITR. 

 

Why “File Extension in Time for Filing Tax Returns” Is Your Safety Net 

The statutory date for File your Tax Returns Pakistan is up-to 30th September 2025 (e.g. including next working day). Miss it and you face: 

• Per day penalty of 0.1% (Minimum fine PKR 10,000) 

• Possible wealth reconciliation notices 

• Blocked NTN for exports/refunds 

• An 11th-hour extender buys you penalty-free time, maybe for 15 days.  

Who Can Apply?  

Any taxpayer required to file an Income Tax Return can request an extension. This includes: 

• Individuals (salaried or self-employed) 

• Associations of Persons (AOPs) 

• Companies 

Valid reasons for requesting an extension include: 

• Absence from Pakistan 

• Illness or other personal emergencies 

• Unavailability of necessary documents 

• Any other reasonable cause, such as technical issues with the filing system 

Remember, extensions are typically limited to 15 days for individuals and AOPs, or 30 days for companies, but the commissioner may approve longer periods in exceptional cases.  

How to File Extension in Time for Filing Tax Returns 

Here is a guide on How to File an Extension for Filing Tax Returns Time in Pakistan: 

Visit the IRIS Portal 

Sign in on your FBR’s IRIS system. This is FBR, official website of Federal Board of Revenue, for filing income tax return online in Pakistan. 

Select Application for Extension 

Click on the “Drafts” or “Applications” tab and select “Application for Extension in Time for Filing Tax Return.” 

Mention Reason for Extension 

Please provide a clear justification for the extension (e.g., audit pending, illness, or non-availability of data). 

Submit the Application 

After completion, you can apply for IRIS. You will get an acknowledgment after the FBR processes it. 

Wait for Approval 

The FBR can provide a brief extension (15-30 days typically) depending on your excuse. It will be communicated to you through the IRIS system. 

Role of Professional Income Tax Returns Services 

In Pakistan, professional income tax returns services can enable you to control your duty agreeably. Specialists take care of everything from getting your Income Tax Return ready to file extensions on time. 

They ensure: 

• Data get entered exactly and followed the FBR rules 

• Timely submission of tax forms 

• Advice about tax credits, deductions and refunds 

• For tax year 2025 within authorized extension limits 

• You don’t need to be stressed out or make any costly mistakes at the last minute. 

 

How do CBM Consultants help with timely filing? 

CBM Consultants protects clients from unnecessary penalties through the timely submission of Income Tax Returns, handling everything for you from beginning to end. Our professionals have the expertise to keep your accounts in order, provide accurate financial records, and create tax-ready receipts where all entries are compliant with FBR rules. We also ensure clients are kept informed of deadlines, file extensions when required, and utilize digital tools such as the IRIS portal to submit returns in a timely manner. 

And they also find ways to apply tax credits, deductions and exemptions that could lower overall tax obligations, all within the letter of the law. Through proactive timeline management, audit representation, and FBR query resolution, the impact of penalties is averted by individuals or businesses that remain flier-strong and also financially trustworthy. 

 

Conclusion: 

Not only does filing your tax return on time keep you in good books with the FBR, but it also means that everything else fits into place properly. In fact, making sure that you file the extension in time for filing tax returns will help you manage your Income Tax Return well, like you would when getting work done by dependable Income Tax Returns Services. For File Tax Returns in Pakistan, act now whether you’re applying for an extension or finishing your filing. Compliance is not just the fulfillment of your civic responsibility, but it also adds towards Pakistan’s economy! In case you have any queries, contact CBM Consultants or check out the FBR website for updated information. 

The Pakistan tax system’s complexity often leaves taxpayers unaware of hidden tax exemptions and reliefs. The Federal Board of Revenue is increasing the Finance Act 2025, making it an ideal time to explore these benefits. This blog will highlight the FBR Income Tax Exemption list, relevant tax credits, overlooked tax reductions, tax credit perspectives, and hidden withholding and income tax exemption glitches. 

 

The Basics of Tax Exemptions 

In Pakistan, tax exemption is the list of incomes, sectors, or transactions for which the FBR establishes that they are not to be charged for income tax according to the Income Tax Ordinance, 2001. They are not just random freebies but intentional measures to grow the economy, shield disempowered communities, and lure investments in areas of high priority like IT, agriculture, and renewable energy industries. 

• Foreign Remittances: Remittances received annually up to PKR 5 million through official banking channels are exempt from income tax. This is an incredible waiver for overseas Pakistanis and their families, who do not need to disclose the source for amounts under this margin. 
• IT and Software Exports: Export income received in foreign currency in any Account through conversion and the normal operation of Export Computer software, IT services, for integrating such services with GST qualifies for a 100% tax credit until June 30, 2025, effectively exempting it (note that 80% of your cash must come from this, so if you are a freelancer on platforms like Fiverr or Upwork, this could reduce your liability to zero). 
• Special Economic Zones (SEZs): At an appointed Special Economic Zone, a firm is granted a 10-year corporate income tax exemption following the commencement of commercial activities, which can be extended to June 30, 2035. To begin, a firm capable of generating at least 75% of its sales is recommended when producing goods or exports. Companies in the following sectors cannot utilize the provisions 
• Power Generation Projects: The earnings of electric power projects built by June 30, 2021, and financed under a cover letter issued by June 30, 2023, will remain unaffected. This exclusion does not apply to firms that develop integrated power projects and sell electricity as per third-party validated external financial projections. 

 

Tax Reductions 

In addition to full exemptions, the 2025-26 budget tax cuts are graduated and provide substantial relief to employed persons and smaller corporations. To offset the impact of inflation, the Finance Act 2025 made adjustments to the slabs. It was especially beneficial for salaried workers and small enterprises, and the new slabs are as follows. For salaried persons: 

Income Slab (PKR)	Old Rate (2024-25)	New Rate (2025-26)	Effective Reduction
Up to 600,000	0%	0%	None (Exemption threshold unchanged)
600,001 – 1,200,000	5% of excess	1% of excess	Up to 80%
1,200,001 – 2,200,000	12.5% of excess	11% of excess	~12%
2,200,001 – 3,200,000	20% of excess	17% of excess	15%
3,200,001 – 4,100,000	25% of excess	22% of excess	12%
Above 4,100,000	Up to 35%	Up to 35% (with 3% cut for some)	Minimal (3%)

 

For example, employees who earn up to PKR 3.2 million end up saving several hundred thousand or more than PKR 50,000 for someone in a middling staff position. Meanwhile, non-filers are subjected to harsher punishment due to a 1 percent cash withdrawal tax, which has increased from 0.6 percent, highlighting the remarkable return on compliance. 

 

Tax Credits and Incentives 

Tax credits and incentives are equivalent to direct reductions in your tax bill, and they’re often more significant than deductions. Unlike exemptions, credits reduce liability for dollars. The FBR Income Tax Exemption section enlists the help of credits and incentives for these sectors. Pakistan’s 2025’s most standout tax credits include: 

• Donations to Approved NPOs: 

Donations to an approved NPO’s Tax rebates at your average rate on donations up to 30% of taxable income with your tax rate reduced by 15% for your companions. 

• Educator and Researcher Rebate: 

A researcher/educators’ wage reward for full-time teachers/employees in nonprofit institutions. The 25% wage tax income rebate is available as of July 1, 2022, and expires June 30, 2025. 

• Home Loan Incentives: 

Home loans subsidies are safe on the interest/profit you pay to build/buy a house up to 2,500 sq ft or flat up to 2,000 sq ft, reintroduced with modifications. 

• Start-ups and Venture Capital: 

Other offerings include the following: three-year exemptions for Pakistan Software Export Board certified start-ups and until 2025 June 30, for venture capital funds.  

90% reduction in low-cost housing for businesses; bio-energy projects; and foreign tax credits for your overseas income. You may argue with them if you provide me with proof that you’ve already paid income abroad. 

 

Navigating Withholding Tax 

The upfront collection mechanism by FBR of the tax on payments, including salaries, contracts, and services, is called Withholding tax. Depending upon the type, rate, and nature of the supplier-receiver relationship: 1% for filers but higher for non-filers, 7-10% for contracts, and progressive in salary cases. Although, the FBR Income Tax Exemption list has a plethora of exemptions. 

The notable tax relief for withholding tax in 2025 are: 

• Exemption Certificates: 

It can be obtained through IRIS for exporters, SEZ operators, or those with exempt income. Public limited firms now have a 100% exemption. Nonetheless, physical certificate/letter and their issuance at departmental level have been withdrawn. 

• Sector-Specific Waivers: 

No WHT is levied on government entities, diplomats, or CNIC-certified NGOs. IT exporters repatriate 80% of the proceeds free of tax. 

• Real Estate Breaks: 

Reduced WHT/Sales proceeds from property sales and transfers abolishing federal excise duty on construction. 

Deposit the amount by the 15th of the next month through the CPR challan.  

 

Income Tax Exemption for Special Groups 

A number of specific individuals and entities are granted general income tax exemption. They include: 

• NGOs and Charities: 

100% credit for NGOs, charities registered under the relevant acts, and additionally with PCP certification and who have maintained funds at a level lower than 25% of their income; they require having NTN/STRN. 

• Returning Citizens: 

Returning Citizens are also entitled to have their foreign source income exempt for the first two years after their return. 

• Widows/Senior Citizens: 

Certain exemptions are granted to widows/senior citizens depending on the set thresholds with the possibility of applying for the exemption with IRIS. 

• Prize Bonds and Remittances: 

Prize bonds are subject to 15% WHT, while remittances for an amount not exceeding PKR 5 million are exempt. 

 

In Guidance with CBM Consultants 

CBM Consultants helps individuals and businesses locate and claim the many tax exemptions and credits they are unaware of in Pakistan. We examine your income sources, investments, and business activities to find FBR tax exemptions, reductions, and incentives for which you are eligible. Our experts help with the right tax filing, withhold taxes, and keep track of new FBR Income Tax Exemption lists. This redresses tax liability without breaking any of Pakistan’s tax authorities. 

Conclusion 

In the landscape of tax exemption in Pakistan has a lot to provide, starting with exciting tax credits and innovative FBR Income Tax Exemption list and ending with a budget for 2025-26 reducing tax rates for salaried class and promising to partially lift repressive withholding taxes policies. More importantly, these benefits rely on the regularity of compliance, always filing on time and keeping a record of it, referring to the IRIS portal. Missing out can make you pay in lakhs because whether it is tax credit Pakistan is implementing for money in charity or exemption certificate, your auditing should have started sooner.