How to Pay Your Income Tax in Pakistan: A Step-by-Step Guide for First-Timers

Paying income tax in Pakistan has become significantly easier with the Federal Board of Revenue's (FBR) digital transformation. Whether you're a first-time taxpayer or someone looking to understand the latest payment methods, this comprehensive guide walks you through every step of the process, from registration to receiving your payment receipt.

Understanding how to pay your taxes correctly not only ensures compliance with Pakistani law but also helps you avoid penalties and maintain your status on the Active Taxpayer List (ATL). With multiple payment options now available, including online banking, ATM payments, and traditional bank deposits, you can choose the method that works best for you.

Understanding Your Tax Payment Obligation

Before diving into the payment process, it's essential to understand when and how much you need to pay. In Pakistan, income tax is payable by individuals whose annual income exceeds PKR 600,000, with different rates applying based on your income bracket and taxpayer category.

Who Needs to Pay Income Tax?

• Salaried individuals earning above PKR 600,000 annually
• Business owners and self-employed professionals
• Property owners with rental income
• Freelancers and service providers
• Anyone with taxable income from investments

Payment Deadlines:

• Annual Returns: Due by the deadline announced by FBR (typically September 30th - check iris.fbr.gov.pk for current year deadline)
• Advance Tax: Quarterly installments due March 15th, June 15th, September 15th, and December 15th
• Self-Assessment: Within 30 days of filing your return

Source: FBR Income Tax Filing Guidelines

Method 1: Online Payment Through IRIS Portal

The IRIS (Integrated Revenue Information System) portal is FBR's official platform for all tax-related services, including payments. This method is recommended for its convenience and instant confirmation.

Step 1: Access the IRIS Portal

1. Visit the official IRIS portal at iris.fbr.gov.pk
2. You can make payments both as a registered user or as a guest
3. Click on the "e-Payments" tab at the top of the page

Step 2: Select Payment Type

1. From the dropdown menu, select your payment type:
   • Income Tax Annual Return - for annual tax liability
   • Income Tax - for advance tax or other income tax payments
   • Sales Tax - if applicable to your business
   • Federal Excise Duty - if applicable

Step 3: Enter Taxpayer Information

For Guest Users:

• Enter your CNIC or NTN
• Provide your full name as per CNIC
• Add your active email address
• Include your mobile number

For Registered Users:

• Simply log in with your credentials
• Most information will be pre-filled

Step 4: Fill Payment Details

1. Tax Payment Nature: Select from the dropdown (e.g., "Self Assessment", "Advance Tax")
2. Tax Amount: Enter the exact amount you need to pay (from your tax calculation or assessment)
3. Tax Period: Select the relevant tax year
4. Payment Mode: Choose "ADC e-payment" for online payment options

Step 5: Generate Payment Slip ID (PSID)

1. Review all entered information carefully
2. Click "Create" to generate your PSID
3. A 9-digit Payment Slip ID will be generated
4. Note down or print this PSID for payment

Important: Your PSID is typically valid for 15 days from generation (check specific validity period shown on your PSID). Make sure to complete payment within this period.

Step 6: Complete Online Payment

Through Internet Banking:

1. Log into your bank's online banking platform
2. Navigate to "Bill Payments" or "Utility Payments"
3. Select "FBR" as the payee
4. Enter your 9-digit PSID
5. Verify the amount and taxpayer details
6. Confirm payment

Supported Banks for Online Payment:

• National Bank of Pakistan (NBP)
• Habib Bank Limited (HBL)
• United Bank Limited (UBL)
• MCB Bank
• Allied Bank Limited (ABL)
• Bank Alfalah
• Meezan Bank
• JS Bank
• Askari Bank
• Faysal Bank
• Soneri Bank
• Bank Al Habib
• Habib Metro Bank

Source: FBR e-Payment System

Method 2: ATM Payment

ATM payments offer a convenient option for those who prefer cash transactions or don't have access to internet banking.

Step 1: Generate PSID

Follow steps 1-5 from the IRIS portal method above to generate your PSID.

Step 2: Visit ATM

1. Go to any ATM of the supported banks listed above
2. Insert your ATM card and enter your PIN
3. Select "Bill Payment" from the main menu
4. Choose "FBR" from the bill payment options

Step 3: Complete Payment

1. Enter your 9-digit PSID when prompted
2. Verify the displayed amount and taxpayer information
3. Confirm the payment
4. Collect your receipt as proof of payment

ATM Payment Tips:

• Ensure your account has sufficient balance
• Keep your receipt safe for record-keeping
• Payment confirmation may take 24-48 hours to reflect in FBR systems

Method 3: Bank Branch Payment

Traditional bank branch payment remains available for those who prefer in-person transactions.

Step 1: Generate and Print PSID

1. Generate your PSID through the IRIS portal (steps 1-5 above)
2. Click "Print" to download the payment slip
3. Take a printout of the PSID slip

Step 2: Visit Bank Branch

Designated Banks:

• National Bank of Pakistan (NBP) - Primary collecting bank
• State Bank of Pakistan (SBP) branches
• Any branch of participating commercial banks

Step 3: Submit Payment

1. Present the printed PSID slip to the bank teller
2. Provide cash or check for the exact amount
3. Pay any applicable bank charges (if any)
4. Collect the stamped receipt as proof of payment

Bank Branch Payment Benefits:

• Personal assistance from bank staff
• Immediate stamped receipt
• No internet connectivity required
• Suitable for large payment amounts

Source: FBR Payment Guidelines

Method 4: Mobile Banking and Digital Wallets

With the rise of digital financial services, several mobile banking and digital wallet options are now available.

Supported Digital Payment Platforms

EasyPaisa:

1. Open EasyPaisa app or visit an EasyPaisa shop
2. Select "Bill Payment"
3. Choose "Government" and then "FBR"
4. Enter your PSID and complete payment

JazzCash:

1. Use JazzCash mobile app
2. Navigate to "Bill Payment"
3. Select "Government Payments" > "FBR"
4. Enter PSID and process payment

Bank Mobile Apps: Most major banks now offer FBR payment options through their mobile applications with the same process as internet banking.

Special Payment Situations

Advance Tax Payments

If you're paying advance tax in quarterly installments:

1. Q1 Payment: Due March 15th
2. Q2 Payment: Due June 15th
3. Q3 Payment: Due September 15th
4. Q4 Payment: Due December 15th

Use the same PSID generation process but select "Advance Tax" as the payment nature.

Penalty and Surcharge Payments

For late filing penalties or ATL surcharge:

1. Generate separate PSIDs for penalties
2. Select appropriate payment nature (e.g., "Default Surcharge", "Penalty")
3. Pay the exact amount as assessed by FBR

Foreign Currency Considerations

For expatriate Pakistanis or those earning in foreign currency:

1. Convert to PKR using the exchange rate on the payment date
2. Pay in Pakistani Rupees only
3. Maintain conversion records for audit purposes

Source: FBR Advance Tax Guidelines

Verification and Record Keeping

Payment Verification

After making your payment, it's crucial to verify that it has been properly recorded:

Online Verification:

1. Return to the IRIS portal
2. Go to "Payment Verification" section
3. Enter your PSID to check payment status
4. Status should show "Paid" within 24-48 hours

Alternative Verification:

• Check your bank statement for deduction
• Contact FBR helpline at 051-111-772-772
• Visit your regional tax office if issues persist

Essential Records to Maintain

Payment Documentation:

• Original PSID slip
• Bank receipt or online payment confirmation
• Screenshots of successful payment (for online payments)
• Bank statement showing deduction

Filing and Storage:

• Keep physical copies in a dedicated tax file
• Maintain digital copies as backup
• Store records for at least 5 years
• Include payment receipts with annual return filing

Common Payment Issues and Solutions

PSID Not Generating

Possible Causes:

• Incorrect CNIC/NTN entry
• Server maintenance periods
• Incomplete form filling

Solutions:

• Double-check all entered information
• Try during off-peak hours
• Contact FBR support for assistance

Payment Not Reflecting

Typical Timeline:

• Online banking: 24-48 hours
• ATM payments: 48-72 hours
• Bank branch: 24-48 hours

If Payment Doesn't Reflect:

1. Wait for the full processing time
2. Check with your bank for transaction confirmation
3. Contact FBR with payment details
4. Visit your regional tax office with receipts

Overpayment or Wrong Amount

Immediate Action:

• Contact FBR helpline immediately
• Provide PSID and payment details
• Request adjustment or refund process
• Keep all documentation

Refund Process:

• File formal application with supporting documents
• Wait for FBR verification (30-60 days)
• Refund may be adjusted against future tax liability

Source: FBR Taxpayer Services

Tips for Smooth Tax Payments

Before Making Payment

Preparation Checklist:

• Calculate exact tax liability using FBR calculator
• Ensure you have sufficient funds in your account
• Have your CNIC/NTN readily available
• Check internet connectivity for online payments
• Verify bank service timings for branch payments

Documentation Ready:

• Recent bank statements
• Previous tax payment receipts
• Copy of filed return (if paying additional tax)
• Contact information for FBR support

During Payment Process

Best Practices:

• Use official FBR portals only (iris.fbr.gov.pk)
• Never share your login credentials
• Double-check all entered amounts
• Ensure secure internet connection for online payments
• Keep transaction references handy

After Payment

Follow-up Actions:

• Save payment confirmation immediately
• Take screenshots of successful transactions
• Print receipts while systems are working
• Update your personal tax records
• Mark calendar for next payment due date

Cost of Different Payment Methods

Fee Structure

Online Banking: Usually free or minimal charges (PKR 0-20) ATM Payments: Generally free for own bank customers Bank Branch: May include service charges (PKR 50-200) Mobile Banking: Typically free or nominal charges EasyPaisa/JazzCash: Small convenience fee (1-2% or fixed amount)

Cost-Saving Tips:

• Use your own bank's channels to avoid cross-bank charges
• Opt for online banking over branch visits
• Check with your bank for any promotional fee waivers
• Consider mobile banking apps for quick payments

Benefits of Timely Tax Payment

Financial Benefits

Avoid Penalties:

• Late payment penalty: 1% per month
• Default surcharge: PKR 1,000 to PKR 50,000
• Additional tax: Up to 120% of original tax

Maintain ATL Status:

• Lower withholding tax rates
• Reduced bank transaction charges
• Better business credit ratings
• Access to government tenders

Legal and Business Benefits

Compliance Advantages:

• Clean tax record
• Easier loan approvals
• Property transaction facilitation
• Business license renewals
• Travel documentation

Peace of Mind:

• No legal notices or inquiries
• Reduced audit risk
• Simplified future dealings with FBR
• Professional credibility

Source: FBR Active Taxpayer List Benefits

Future of Tax Payments in Pakistan

Digital Transformation

Upcoming Features:

• Mobile app-based direct payments
• Real-time payment processing
• Enhanced security measures
• Multi-language support
• Improved user interface

Government Initiatives:

• Cashless economy promotion
• Digital Pakistan vision
• Simplified tax procedures
• Enhanced taxpayer services
• Automated compliance systems

Technology Integration

Expected Improvements:

• Blockchain-based payment verification
• AI-powered tax calculation assistance
• Biometric authentication
• Voice-activated payment systems
• Integration with international payment systems

Expert Recommendations

For First-Time Taxpayers

Getting Started:

1. Obtain NTN registration first
2. Calculate your tax liability accurately
3. Start with online payments for convenience
4. Keep detailed records from day one
5. Set up payment reminders

Common Mistakes to Avoid:

• Paying wrong amounts due to miscalculation
• Missing payment deadlines
• Not keeping proper receipts
• Using unofficial payment channels
• Ignoring payment verification

For Regular Taxpayers

Optimization Strategies:

• Set up standing instructions for advance tax
• Use calendar reminders for quarterly payments
• Maintain digital copies of all receipts
• Review payment methods annually for cost efficiency
• Stay updated with FBR notifications

Advanced Tips:

• Consider professional tax advisory services
• Use FBR's official mobile apps when available
• Automate routine payment processes
• Maintain separate bank accounts for tax purposes
• Plan payments around cash flow cycles

Getting Help and Support

Official FBR Support

Contact Information:

• Helpline: 051-111-772-772
• Email: Support available through IRIS portal
• Website: www.fbr.gov.pk
• IRIS Portal: iris.fbr.gov.pk

Regional Tax Offices:

• Visit your nearest RTO for in-person assistance
• Carry all relevant documents and payment receipts
• Available during official working hours
• Multilingual support available

Professional Services

When to Seek Professional Help:

• Complex tax calculations
• Business structure changes
• International income sources
• Audit or inquiry situations
• Large payment amounts

Types of Professional Services:

• Chartered Accountants
• Tax consultants
• Legal advisors specializing in tax law
• FBR-authorized agents
• Corporate tax services

Source: FBR Taxpayer Assistance

Conclusion

Paying income tax in Pakistan has evolved from a cumbersome paper-based process to a streamlined digital experience. With multiple payment options available through the IRIS portal, online banking, ATM networks, and mobile platforms, taxpayers now have unprecedented convenience in meeting their obligations.

The key to successful tax payment lies in preparation, accuracy, and timely action. By following this comprehensive guide, first-time taxpayers can navigate the process confidently, while experienced taxpayers can optimize their payment strategies for maximum efficiency.

Remember that paying taxes is not just a legal obligation but also a contribution to Pakistan's development and your own financial credibility. The benefits of maintaining a clean tax record far outweigh the effort required to stay compliant.

Key Takeaways:

1. Choose the right method based on your comfort level and available resources
2. Always use official FBR channels to ensure security and proper recording
3. Keep detailed records of all payments for future reference
4. Verify payments within 48-72 hours to ensure proper processing
5. Stay informed about deadlines and any changes in procedures

Whether you're making your first tax payment or your hundredth, the process is designed to be accessible, secure, and efficient. Take advantage of the digital tools available, maintain good records, and don't hesitate to seek help when needed.

Need Immediate Assistance?

• FBR Helpline: 051-111-772-772
• IRIS Portal: iris.fbr.gov.pk
• e-Payment Direct Link: iris.fbr.gov.pk/payment

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This comprehensive guide was last updated in September 2025 with the latest FBR procedures and payment methods. Always verify current requirements on the official FBR website before making payments.