E-filing of Taxes in Federal Bureau of

Revenue Pakistan

 What is e-service & e-filing?

 Introduction to e-filing in Pakistan
 Users of e-filing
 E-enrollment procedure
 E-filing procedure
 Benefits of e-filing

What is E-Service and E-filing?

E-Service is simply a way to serve your documents using internet and taxes
online system. It saves time and, quite often, a significant amount of money
over traditional methods.

E-filing is an electronic facility provided by the FBR to the taxpayers to file

income tax returns/statements.

Short Introduction:
When the government started an information-technology (IT) and e-
commerce initiative in early 2000, its basics aim was to help public sector
organizations in increasing efficiency, effectiveness and responsiveness with
the use of Information and Communication Technology. It focused
Infrastructure development of government departments and thus facilitating
common public in using services of different government department easily.
Devolving e-filing system for FBR was also one of early and major projects.

In December 2005 the Central Board of Revenue, the tax authority officially
started allowing electronic filing of sales tax and federal excise returns by
registered private and public companies. At that time, it said that it expected
about 1,500 large taxpayers out of 22,000 to use the facility. Now with the
help of e-filing system and other policies FBR has successfully increased the
tax net to great ranges.

Major Functions performed by FBR by help of E-filing:

• Issuance of NTN and sales tax numbers

• Collection of Sales Tax, Income tax and property tax

 • Keeping record of taxpayers and sharing it with relevant parties

• Issuing active taxpayers list more easily and effectively

Users of E-filing:
Following are the legal entities that can avail e-filing service (provided that it
fulfills the requirements of FBR)

• AOP (Association of Persons)

• Company
• Individual

AOP (Association of Persons) is defined in law as a firm, a Hindu

undivided family, any artificial juridical person or anybody of persons formed
under foreign law.

An Individual is a person who is resident of Pakistan or non-resident if he is

fulfilling criteria of Law.

A company is a legal entity formed to carry a business for profit and that is
registered under company ordinance 1984.

The board has further clarified that e-filing mode for the submission of
income tax returns is required only for individuals and companies with whose
declared income is Rs 500,000 or more per annum and not for ordinary
traders and individuals whose income falls below the criteria.

e-Enrollment Procedure:
To begin e-Filing CBR Returns and Statements enrollment is necessary.
Earlier individuals, companies, and AOP’s had to enroll themselves manually
but after introduction of e-filing system, now there is a facility of e-
enrollment.

How to do Individual e-Enrolment

1. Entering your NTN number

2. Enter CNIC as it is printed on NTN Certificate

3. Enter Secret Digits as it is given in Graphic Image at e-Enrolment

Page.
After completion of e-Enrolment process User-ID and Password is issued to
applicant.

How to do Individual e-Enrolment

Following information is required to e-enrollment of company:

• Company NTN

• Registration number

• Director NTN

After completing the e-Enrollment Process in signed and Stamped Form can
be faxed. Thereafter you will be issued User-ID and Password for e-Filing.

E-filing Procedure:
After completing the enrollment procedure, we have to activate and verify
our account. Once the account is activated, we can move on to e-filing step.

1. Open FBR website and enter user id and password which we gained
during enrollment procedure.

2. After successful, we ll get number of options that were not earlier

available and are available only to those have a valid user id and
password.

3. Here we can file tax returns in two modes;

• E-file in online mode by remaining online and connected to the FBR

website

• Download excel file, fill it in offline mode, and later upload it.. this
method is specially for those who have low speed internet
connections.

4. Whatever mode we choose, we have to fill the same form, though

there is some difference of steps.

5. After we have calculated our tax and filled it we verify our prepared
return.
 6. After successful verification we ll get option of e-payment or manual
payment, which we can select according to our ease.

7. If we select e-payment methods, we have to fill bank and account

information. Once we complete it we get a submit button and
pressing it completes the e-filing process.

8. We get acknowledgement slip button, pressing which will generate

acknowledgement slip, which we can print and use as a evidence of
tax payment.

Benefits of E-filing:
These are the benefits of e-filing:

 Convenience: You can electronically file 24 hours a day, 7 days a

week.

 Security: Your tax return information is encrypted and transmitted

over secure lines to ensure confidentiality.

 Accuracy: Electronic filed returns have 13 percent fewer errors

than paper returns.

 Proof of Filing: An acknowledgment is issued when your return is

received and accepted.

 Direct Deposit: You can have your refund direct deposited into
your bank account.

There are number of targets which have been achieved by using e-filing
system and e-filing system has facilitated different government
departments, agencies as well as common users in number of ways. Now
different Government institutions can better use information collected by e-
filing system to their benefit, they have more effective, efficient and time
saving way of communicating and working with each other. Thus it increases
responsiveness of Government sector in delivering public services. Apart
from that it also bring Government close to citizen by providing them with
easier access to information through personnel computers, internet, fax and
other communication services.
References:

 www.fbr.gov.pk

 Income Tax ordinance

 Business recorder article

 E-filing Department, FBR Multan

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