If you have overpaid your taxes, you are entitled to claim a refund from the Federal Board of Revenue (FBR). However, many individuals miss this opportunity simply because they are unaware of the correct procedure. This guide explains how you can claim your income tax refund in Pakistan, step by step, while ensuring compliance with FBR regulations.
Step 1: File Your Income Tax Return Electronically
Filing your income tax return online through the FBR’s IRIS portal is the first and most critical step. You must provide accurate details of your income, deductions, and any advance or withheld taxes. A properly filed return establishes the foundation for your refund claim.
Step 2: Enter All Paid Taxes in the Return
When completing your return, ensure that:
All taxes paid during the year—such as salary deductions or advance payments—are entered clearly.
This ensures that any excess payment is properly reflected and eligible for refund.
Step 3: Submit a Separate Refund Application in IRIS
Even if your return shows a refundable amount:
The FBR will not issue a refund automatically.
You must file a separate refund application through the IRIS portal.
This formal application initiates the refund process.
You can monitor the status of your refund through the IRIS dashboard or by visiting your Regional Tax Office (RTO).
Step 4: Verification by FBR
After you submit your refund application:
The FBR will verify your claim.
This includes checking income, deductions, supporting documents, and any tax credits or exemptions claimed.
The refund is processed only after successful verification.
Step 5: Respect the Legal Time Frame
Refund claims must be filed within two years from the date of the tax payment or assessment—whichever is later.
Submitting your claim after this period may result in forfeiture of the refund.
Step 6: Understand Eligibility Requirements
Filing your tax return after the due date can impact your eligibility.
Generally, refunds are issued only if the taxpayer appears on the Active Taxpayers List (ATL).
Late filers may still apply, but their refund may be delayed, and the tax authorities are not liable for such delays.
Step 7: Use the Centralized Online Refund System
Pakistan now uses a centralized system for processing income tax refunds electronically. To use this system:
Ensure your IRIS profile is up to date.
Include all required personal and banking information.
Step 8: Provide Accurate Bank Account Information
To receive your refund via direct deposit or cheque:
Provide your correct IBAN in the designated section of your IRIS profile.
The IBAN must match the linked account already registered.
Inaccurate or missing information may delay your refund.
For instructions on how to update your bank account in IRIS, visit:
How to Add a New Bank Account in IRIS (FBR Guide)
Let Ali Law Associates Handle It for You
If you would rather avoid the complications and risks of filing incorrectly, Ali Law Associates is here to help.
Our team of experienced tax consultants handles everything from return filing to refund claims—ensuring accuracy, legal compliance, and peace of mind.
Whether you are an individual salaried employee or a business professional, we can help you recover the tax refunds you’re entitled to—without delays or unnecessary hassle.
Contact Ali Law Associates today and let us make your refund process simple and successful.