Avoid These 7 Common Mistakes When Filing Income Tax as a Salaried Person



Filing income tax is not just a legal formality—it's a financial responsibility with far-reaching benefits. For salaried individuals in Pakistan, it helps build a financial profile, boosts your credibility, and ensures compliance with national laws. Unfortunately, many make costly errors that can lead to penalties or lost benefits.

Mistake #1 – Missing the Tax Deadline

The Federal Board of Revenue (FBR) sets a clear deadline for tax returns—usually September 30th for salaried individuals. Filing late can:

  • Incur a minimum penalty of Rs. 10,000

  • Disqualify you from being listed as an Active Filer

  • Lead to complications in banking, visa, and property transactions

Tip: Mark the date in your calendar and file early.

Mistake #2 – Not Reporting All Sources of Income

Salaried people often assume only their paycheck matters. That’s not true.

Include income from:

  • Freelance work or side gigs

  • Rental property

  • Investments and dividends

  • Foreign remittances (if applicable)

Failure to disclose these can lead to audits or misfiling penalties.

Mistake #3 – Incorrect Declaration of Tax Credits

Taxpayers are eligible for credits on:

  • Zakat donations

  • Medical expenses

  • Education expenses

However, if you miss out on valid receipts, you can’t claim these credits. Always collect:

  • Original donation slips

  • Bank statements for payments

  • Valid invoices for medical bills

Mistake #4 – Failing to Claim Allowable Deductions

Many salaried individuals miss out on deductions for:

  • Contributions to voluntary pension schemes (VPS)

  • Health and life insurance premiums

  • Donations to approved charities

These can significantly lower your tax liability.

Mistake #5 – Using the Wrong Tax Form

Pakistan’s FBR provides different forms for different taxpayer types.

Salaried Individuals Should Use:

  • Form IT-1 if you have only salary income

  • Form IT-2 if you have salary + other income

Using the wrong form can invalidate your submission.

Mistake #6 – Ignoring Tax Certificates from Employer

Your employer provides a salary certificate that includes:

  • Total annual salary

  • Deductions made

  • Withholding tax paid

Many forget to upload this during filing, leading to discrepancies.

Mistake #7 – Not Verifying and Reviewing Before Submission

Small mistakes like:

  • Typing errors in CNIC

  • Incorrect bank details

  • Missed deductions

…can cost you dearly.

Always double-check:

  • Spelling of names

  • Uploaded documents

  • Computed tax summary

Bonus Tip – Filing as an Active Filer on FBR

Registering as an Active Filer gives you:

  • Reduced withholding tax on bank transactions

  • Easier visa processing

  • Higher credibility for loan applications

How to Stay Active: File your return before the deadline and ensure it’s accepted.

How to File Income Tax the Right Way

Step-by-Step Guide:

  1. Register or log in to the FBR Iris portal

  2. Select the correct tax year

  3. Choose the right return form (IT-1 or IT-2)

  4. Fill in income, deductions, and tax credit details

  5. Attach supporting documents (employer certificate, receipts)

  6. Review and submit the form

Pro Tip: Use tax advisors listed on ConnectSimply.com for expert guidance.

Best Tools and Platforms to Use

  • FBR IRIS Portal: For self-filing

  • Tax Asaan Mobile App: Quick tracking

  • ConnectSimply.com: Trusted directory of tax experts and resources

Benefits of Proper Tax Filing for Salaried Individuals

  • Eligible for bank loans and car leasing

  • Easier property purchases

  • Acts as proof of income for embassy/visa applications

  • Helps you avoid surprise audits or penalties

Frequently Asked Questions

Q1: Do salaried individuals need to file tax if TDS is already deducted?
 Yes, you must file to claim credits and maintain Active Filer status.

Q2: What if I missed the deadline?
 You can still file late, but with penalties. It's better than not filing at all.

Q3: Can I claim deductions without receipts?
 No. Always maintain proper documentation to support your claims.

Q4: Is filing through a consultant better than doing it yourself?
 If unsure, it's safer to file through certified professionals.

Q5: Can I revise my return after submission?
 Yes, within a certain time frame, you can file a revised return.

Q6: How much does it cost to file taxes through a professional?
 Anywhere from Rs. 2,000 to Rs. 10,000, depending on the complexity.

Conclusion

Filing income tax as a salaried person doesn’t have to be overwhelming. By avoiding these seven common mistakes, you can file accurately, on time, and with confidence. Whether you choose to self-file or consult experts via ConnectSimply.com, taking control of your taxes is one of the smartest financial moves you can make this year.

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