Complete Guide: How to File FBR Income Tax Returns for Tax Year 2026

Based on the latest Federal Board of Revenue (FBR) notifications for Tax Year 2026 (covering July 1, 2025, to June 30, 2026), here is your comprehensive, step-by-step manual for declaring income across all major statutory categories within the IRIS portal.

1. Income from Salary

For individuals whose primary earnings come from formal employment:

• Select Income Source: On your IRIS dashboard wizard, check the box for "Income from Salary".
• Employer Details: Click "Add" and enter your employer's National Tax Number (NTN) and official business name.
• Income Declaration: Enter your gross total salary, standard allowances, and any perquisites into the text fields (use Code 1000 for gross salary).
• Tax Deductions: Navigate to the "Tax Deductions" sub-tab and enter the total tax already withheld by your employer at source.

2. Income from Property (Rental Income)

For taxpayers earning rent from land or buildings:

• Property Mapping: Go to the Property wizard and click "Add Property" to link your real estate asset.
• Details Required: Input the property type (Residential, Commercial, Industrial), address, land area, acquisition date, and total cost.
• Declare Income: Input your gross rental receipts, advance rent, or forfeited deposit amounts.
• Claim Deductions: Click "Add Deductions" to subtract permissible expenses like property insurance, local property taxes, ground rent, legal expenses, or interest paid on a mortgage used to buy the property.

3. Income from Business

For sole proprietors, partners in an Association of Persons (AOP), and companies:

• Business Setup: Enter your business name, principal business activity code, and brand name.
• Revenue & Expenses: Enter your Gross Turnover and Net Revenue. Under "Other Expenses", manually log operational costs like utilities, salaries, professional fees, accounting depreciation, and markups.
• Adjustments: Use the "Add Backs" feature to explicitly add back inadmissible deductions (such as personal expenses or penalties) to reconcile your true taxable income.

4. Income from Remunerative Social Media Content

Under the newly updated Chapter IIA framework for digital creators, vloggers, and influencers:

• Filing Threshold: This section is mandatory if your channels have more than 50,000 subscribers/followers during the tax year.
• Where to File: Expand the "Income from Business" panel and look specifically for the line item labeled "Income from Social Media Content".
• Income Calculation: The IRIS system will compute tax on the higher of your actual platform earnings OR the FBR's assessed benchmark formula: Revenue per Mille (RPM) × Average Views per Post × Total Annual Posts.
• Expense Cap: You can claim operational deductions (internet, production equipment, software), but your total allowed deductions are capped at a maximum of 30% of your gross social media income.

5. Special IT & Tech Export Provisions

For software engineers, tech startups, and freelancers receiving foreign remittances:

• Reduced Tax Rate: Eligible IT exports enjoy a reduced concessionary tax rate of 0.25% (extended up to 2029).
• Filing Path: Do not combine this with standard business income. Report it entirely under the Final/Fixed Tax Regime tab designated for IT-enabled services. Ensure you have your bank-issued Proceeds Realization Certificates (PRCs) to back your claims.

6. Capital Gains

For profits made on the disposal of capital assets or immovable property:

• Asset Classification: Categorize your gains under Section 37 (General Capital Assets), Section 37(1A) (Immovable Property), or Section 37A (Public Securities).
• Disposal Details: Record the acquisition date, disposal date, exact holding period, original cost, and final sale price to allow the system to calculate the taxable gain or loss.

7. Wealth Statement & Reconciliation (Section 116)

• Asset Registry: Declare all personal bank accounts (IBAN formats), vehicles, jewelry, cash on hand, and assets held in the name of your dependents.
• Reconciliation: Under the Reconciliation tab, balance your inflows (declared income, foreign remittances) against your outflows (personal/household expenses) and your net asset shift. Your "Unreconciled Amount" must equal 0 before the portal will let you submit your return.