Day 21: Filing for NIL or Zero Income Tax Return in Pakistan
Why and How to File If Your Income Is Below the Taxable Threshold
Filing your income tax return in Pakistan, even when you have zero or nil income, is not only a responsible civic act but also a smart financial move. Many individuals are unaware that filing a NIL return comes with multiple benefits, including staying active on the FBR ATL (Active Taxpayers List), avoiding penalties, and maintaining a clean tax profile.
What Is a NIL Return?
A NIL return refers to the income tax return filed by a person whose total income for the year is below the taxable threshold as defined by the Federal Board of Revenue (FBR). This essentially means you are not liable to pay any tax—but filing is still encouraged and sometimes required.
Why File a NIL Return?
Here are some key reasons to file your NIL tax return:
- Stay on the Active Taxpayer List (ATL)
Even with no income, filing keeps your name on ATL, helping you avoid higher withholding taxes on banking and business transactions. - Avoid Notices from FBR
FBR may issue notices if a person is eligible to file and doesn’t—filing NIL eliminates this risk. - Maintain Legal Compliance
Filing demonstrates your commitment to financial and legal transparency. - Required for Certain Benefits
A tax return is often needed to apply for loans, visas, government tenders, and business registrations. - Declare Assets
You may still need to submit a wealth statement, even with nil income, to keep asset records aligned.
Who Should File a NIL Return?
- Students receiving family support
- Homemakers
- Individuals with income below Rs. 600,000 (for salaried) or Rs. 400,000 (for business)
- Freelancers or part-time earners not crossing taxable limits
How to File a NIL Income Return
- Create or Login to Your FBR IRIS Account
Visit https://iris.fbr.gov.pk/ - Navigate to Income Tax Return Section
Choose the relevant tax year. - Enter ‘0’ in Income Fields
For all sources of income, enter “0” or the relevant amount of income received during the year. - Fill in Wealth Statement (If Applicable)
This may include savings, bank balances, or movable/immovable assets. - Submit the Return
Review all information, then click “Submit”. - Download the Acknowledgement
Keep the acknowledgement copy for your records or future use.
Important Considerations
- Even if you have no income, don’t leave asset sections blank if you own property or savings.
- Filing late results in penalties or exclusion from ATL.
- Use CNIC-based registration if you’re a first-time filer.
MTF & Co. Tax and Corporate Advisory: Your Partner in Compliance 
At MTF & Co., we help individuals—even those with nil or minimal income—file their returns accurately and efficiently. From guiding students to freelancers, our expert tax consultants ensure you’re legally compliant while unlocking the benefits of being on the ATL.
Let us handle your filing so you can focus on what matters most!
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📧 Email Support: mtfco@onewebonehub.com
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