So, you’ve finally decided to file your tax return. That’s a great move! Whether you’re a salaried person, freelancer, small business owner, or just someone trying to become a filer — welcome to the club. But hold on for a second — just because you’re filing doesn’t mean it’s always done right. Believe it or not, a lot of Pakistanis make small mistakes that end up causing big problems later.
These common errors can lead to notices from FBR, fines, delays in refunds, or even rejection of your tax return. And the worst part? Most of these mistakes are super easy to avoid once you know what to watch out for.
So in this article, I’m going to break down the most common tax filing mistakes in Pakistan and show you how to avoid them like a pro — using plain, simple language. No scary tax jargon. No difficult terms. Just real, useful information for everyday Pakistanis.
Why Does Avoiding Mistakes Matter So Much?
Let’s be honest. FBR isn’t always the most forgiving. Even a small error in your income, tax deduction, or asset declaration can make them send you a notice or penalty. Imagine waiting for a refund for months, only to find out you made a silly mistake that could’ve been avoided in 2 minutes.
That’s why understanding these mistakes upfront is key. Think of this article like your cheat sheet before pressing that “Submit” button on your tax return.
1. Not Filing at All (The Most Dangerous Mistake)
Let’s start with the obvious — not filing at all. Many people assume that if their tax is already deducted from salary or bank, they don’t need to file. Wrong.
Filing your return is still mandatory if your income is taxable. Plus, even if it’s not, you can still file a Nil return and become a filer.
Not filing means:
- You pay higher taxes on cars and property
- You miss refund chances
- You get removed from the Active Taxpayer List (ATL)
So, don’t delay. File even if you think it doesn’t apply to you. Trust me, it does.
2. Entering Wrong CNIC or NTN Details
You might laugh, but this happens more than you’d expect. People type the wrong CNIC or NTN while logging into IRIS, or while filling forms.
One wrong digit and your return won’t go through — or worse, it’ll be linked to someone else’s record. Always double-check your CNIC number and make sure your NTN is linked correctly.
3. Forgetting to Report Bank Deducted Tax
This is a super common one. Every time you withdraw cash from your bank, receive profit on savings, or do certain transactions — the bank deducts some tax.
But most people forget to report that amount in the “Adjustable Tax” section of the return. When you miss this, you lose the chance to adjust it against your total tax — meaning you might end up paying more than you should.
4. Ignoring Freelance or Online Income
Freelancers and online earners, this one’s for you. If you earn through Fiverr, Upwork, YouTube, or international clients — yes, that’s income and yes, it must be declared.
Some people assume that since it’s in dollars or going to a Payoneer account, it’s not taxable. Wrong again. Foreign income is still your income and must be declared under “foreign source”.
If you ignore it, and your bank shows dollar deposits — FBR might come knocking.
5. Not Declaring Assets Like Car or Property
So you bought a car, a plot, or even just a bike — and didn’t mention it in your wealth statement? That’s a red flag for FBR.
Even if it’s second-hand or bought on installments, any major asset should be declared in your wealth statement. If FBR finds that your declared wealth doesn’t match your lifestyle, you could face questions and penalties.
6. Guessing Income Without Proof
Never guess or “make up” income just to fill the form. If you’re a freelancer or businessperson, and you randomly put Rs. 10 lakh without records — that’s risky.
FBR can ask for bank statements or client invoices to match your declared income. If there’s a mismatch, you’ll be under scrutiny.
Keep your records, bank slips, and client payments organized. It’ll save you from headaches.
7. Forgetting to Submit Wealth Statement
Many people file the income tax return but skip the wealth statement. Incomplete submission means your return isn’t accepted properly.
Wealth statement shows what you own and how it has changed compared to last year. Even if you have nothing fancy, just list what you do have — savings, cash, house, bike, etc.
Always file both: Return + Wealth Statement.
8. Using Wrong Tax Year
This is a sneaky one. Tax year refers to the previous financial year, not the current one.
For example, if you’re filing in 2025, you’re actually submitting for Tax Year 2024 (income earned from July 2023 to June 2024).
Choosing the wrong tax year can lead to major confusion and rejection of return. Always check before selecting.
9. Mixing Personal and Business Expenses
If you’re running a business, don’t mix your personal grocery, petrol, or shopping with business expenses. It’ll make your books messy, and if FBR audits you, it’s hard to justify.
Keep separate accounts or at least make a clean breakdown in your tax return.
10. Not Claiming Tax Credits
Did you donate to a charity? Pay for your kids’ school? Invest in a pension fund or health insurance?
These things can actually reduce your tax amount — legally! But most people don’t even know about it.
In your return, there’s a Tax Credits section. Make sure to explore it and enter valid amounts. It could save you thousands of rupees.
11. Not Revising After a Mistake
It’s okay to make mistakes. But what’s not okay is leaving them there.
IRIS lets you revise your return if you realize an error. Just go back, make corrections, and submit again.
A revised return is far better than a wrong one sitting in FBR’s system.
12. Submitting After Deadline
Even if you plan to file, missing the deadline can remove you from the ATL and expose you to fines.
Always check the final date (usually 30th September) and submit on time. Late filing can cost you money, and even block you from many benefits.
13. Letting Someone Else File Without Checking
Many people pay someone else to file their tax. That’s fine. But don’t blindly trust them.
Make sure:
- They enter correct info
- They show you the final file
- They give you the login to your IRIS account
At the end of the day, you are responsible, not your agent.
14. Not Downloading and Saving Return PDF
After you file, always download your Return PDF and Wealth Statement. Keep it saved in your email or Google Drive.
You’ll need this for:
- Visa applications
- Buying property
- Government jobs
- Bank loans
It’s your financial identity.
15. Forgetting to Check Active Filer Status
Just filing isn’t enough. Your name should appear in the Active Taxpayer List (ATL).
You can check it on FBR’s website by entering your CNIC. If your name isn’t there after filing, something went wrong — better to fix it early.
What Should You Do If You Made a Mistake?
If you’ve already filed and realized you made a mistake — relax. You can still fix it.
- Log into IRIS
- Open your return
- Click on “Revision”
- Make corrections
- Resubmit
Filing correctly is better than filing quickly. Take your time and double-check.
Some Final Tips to Avoid Tax Mistakes
- Keep your documents ready before filing
- Use FBR’s official website only
- Watch Urdu tutorials if confused
- Don’t ignore SMS or emails from FBR
- Save login info safely
- Read each section carefully
Once you do it once, it becomes super easy next year.
Filing Smart Means Peace of Mind
Tax season doesn’t have to be stressful or confusing. You just need the right mindset and right information.
By avoiding these common mistakes, you’ll save yourself from penalties, delays, and unnecessary stress.
Remember — filing your return properly is not just about paying taxes. It’s about becoming financially smart, legally protected, and getting the benefits you deserve as a responsible citizen of Pakistan.
