How to Pay Income Tax in Pakistan — IRIS Portal, Bank & Online Methods

How to Pay Income Tax in Pakistan

Income tax in Pakistan can be paid through the FBR IRIS portal, online banking, over-the-counter at bank branches, or through ATMs. The process starts with generating a Payment Slip ID (PSID) on the IRIS portal, which you then use to make the payment through your preferred method.

This guide walks you through each payment method step by step, covers important deadlines, and highlights common mistakes that can delay your payment processing.

Step 1: Generate a PSID on the IRIS Portal

Regardless of which payment method you choose, the first step is always to generate a PSID (Payment Slip ID) through the FBR's IRIS portal. The PSID is a unique 17-digit number that links your payment to your tax account.

1. Visit the IRIS portal at iris.fbr.gov.pk
2. Log in with your NTN/CNIC and password
3. Navigate to "Payments" from the main menu
4. Select "Create Payment"
5. Choose the payment type (e.g., Income Tax, Advance Tax, Withholding Tax)
6. Enter the tax period and amount
7. Select your preferred payment mode (online banking, ATM, or over-the-counter)
8. Click "Submit" to generate the PSID
9. Note down or print the PSID — you will need it for the next step

The PSID remains valid for a limited period (usually 30 days). If it expires before payment, you will need to generate a new one.

Payment Method 1: Online Banking

Most major Pakistani banks support FBR tax payments through their internet banking and mobile banking platforms. The process varies slightly by bank, but generally follows these steps:

1. Log in to your bank's internet banking or mobile app
2. Navigate to "Bill Payment" or "Government Payments"
3. Select "FBR" as the biller/payee
4. Enter your PSID (the 17-digit number from the IRIS portal)
5. Verify the amount and payment details
6. Confirm the payment
7. Save the transaction receipt for your records

Banks that support FBR online tax payments include:

• HBL (Habib Bank Limited) — via HBL Mobile and Internet Banking
• UBL (United Bank Limited) — via UBL Digital App and NetBanking
• MCB (Muslim Commercial Bank) — via MCB Internet Banking
• Allied Bank — via myABL and Internet Banking
• Meezan Bank — via Meezan Mobile Banking
• Bank Alfalah — via Alfa App and Internet Banking
• Standard Chartered — via SC Mobile Pakistan
• Faysal Bank — via Faysal DigiBank

Online banking payments are typically reflected in IRIS within 24-48 hours. During peak filing season (September-October), processing may take slightly longer.

Payment Method 2: Over-the-Counter (Bank Branch)

If you prefer to pay in person, you can visit any designated bank branch:

1. Take your PSID printout or note the number
2. Visit any branch of the designated banks (State Bank of Pakistan, NBP, HBL, UBL, MCB, ABL, and others)
3. Request to make an FBR tax payment
4. Provide the PSID to the teller
5. Pay the amount in cash or through your bank account
6. Collect the stamped payment receipt (challan)

National Bank of Pakistan (NBP) branches are the primary designated collection points for government taxes. Most other major banks also accept FBR payments at their branches.

Payment Method 3: ATM

Several banks allow FBR tax payments through their ATM networks:

1. Insert your debit card at any ATM of a participating bank
2. Select "Bill Payment" or "Government Payment"
3. Select "FBR"
4. Enter your PSID
5. Confirm the amount and complete the transaction
6. Keep the ATM receipt

ATM payments are convenient but may have daily transaction limits. For large tax payments, online banking or bank branch visits are more practical.

Payment Deadlines

Different types of tax payments have different deadlines:

Annual Income Tax Return

Tax must be paid before filing the annual return. The filing deadline for tax year 2025-26 is typically September 30, 2026 (often extended to October or November by the FBR).

Advance Tax Installments

If your tax liability for the year is expected to exceed PKR 200,000, you must pay advance tax in quarterly installments:

• 1st installment: September 15 — 25% of estimated tax
• 2nd installment: December 15 — 25% of estimated tax
• 3rd installment: March 15 — 25% of estimated tax
• 4th installment: June 15 — 25% of estimated tax

Late payment of advance tax installments attracts a default surcharge under Section 205 of the Income Tax Ordinance, calculated at the KIBOR rate on the shortfall amount.

Withholding Tax

Withholding agents must deposit collected withholding tax within 7 days of the end of the week in which the tax was deducted.

Common Mistakes to Avoid

• Wrong PSID: Double-check the 17-digit PSID before making the payment. A wrong number can credit the payment to someone else's account.
• Wrong tax period: Make sure you select the correct tax year when generating the PSID. Payments credited to the wrong period require manual adjustment by the FBR.
• Not saving the receipt: Always keep the payment receipt (digital or physical). Without it, proving the payment during an audit can be difficult.
• Paying after filing: Your return should show the payment already made. Pay first, then file.
• Ignoring advance tax: If you owe more than PKR 200,000, failing to pay in quarterly installments triggers default surcharge.

Need Help With Tax Payments?

Our income tax team handles the entire tax payment and filing process for individuals and businesses. From calculating your liability to generating the PSID and filing the return, we manage everything. Contact us to get started.