Karachi's taxpayers are the country's most varied, and a return that suits one of them is nearly useless for the next. A clearing agent's income, a share trader's gains, a Bolton Market wholesaler's margins, a ride-hailing driver's weekly earnings, a bank manager's salary and a freelancer's dollar receipts are all taxable, but they are entered in different places and supported by different papers. The result is that people in the same city, filing the same form, need entirely different preparation.
Returns are filed online through IRIS, and NTNWaale prepares and submits them remotely over WhatsApp, which in Karachi saves both the trip and the traffic. If you still need an NTN, our page on NTN registration in Karachi explains how to get one.
Who in Karachi Has to File
Anyone registered with taxable income owes a return. In Karachi that includes:
- Importers, exporters, clearing agents, freight forwarders and their suppliers
- Wholesalers, retailers and traders in Saddar, Bolton Market, Jodia Bazaar and neighbourhood markets
- Owners and managers of units in SITE, Korangi, Landhi and Port Qasim
- Stock-market investors and traders
- Ride-hailing, delivery and other gig-economy workers
- Freelancers, developers and agency staff earning from local and foreign clients
- Doctors, lawyers, architects and consultants in private practice
- Landlords and property investors in DHA, Clifton, Gulshan and the newer schemes
- Salaried staff of banks, multinationals, hospitals and schools
Share Traders and Investors
Gains on shares are taxable, and how they are treated depends on how long the shares were held and the rules in force for that year. The broker deducts tax at source on many transactions and issues statements. Those statements are the raw material for the return: they show purchases, sales, gains, dividends and tax already withheld.
The return reconciles those statements with your other income. Tax deducted at source is a credit; whether more is owed or a refund is due depends on the year's figures. Investors with holdings in several brokerages should gather each brokerage's annual statement, and the wealth statement should list holdings at the year-end value or cost as the rules require. Our guide to capital gains tax on shares explains the treatment.
Importers, Clearing Agents and Trade Income
A trader who imports goods has purchases documented by customs and bank papers, sales recorded in his books, and stock at year end. Customs duties and taxes paid at import are credits or costs depending on their type, and the return has to treat them correctly. A clearing agent earns a fee and reports it as service income, with tax deducted by clients. The bank's foreign-exchange advices and the customs documents are the anchor records for both.
Because import documents carry the registered numbers of the parties, mismatches between what appears in customs and what is declared are found quickly. A return prepared from the customs and bank records, rather than from memory, is the safest approach. Our page on income tax on exports covers the exporter's side.
Ride-Hailing, Delivery and Gig Income
Drivers and delivery workers earn through apps that pay weekly or fortnightly and issue statements. The statement shows gross earnings, the platform's commission and payouts. Expenses — fuel, maintenance, vehicle instalments' interest, phone and data — reduce the taxable amount, but only if they are recorded.
A simple monthly sheet listing app earnings, fuel and repair costs is enough. Drivers who own the vehicle should list it in the wealth statement; those who rent it record the rent as a cost. Our page on tax for ride-hailing drivers explains how such income is treated.
Freelancers, Agencies and Foreign Income
Karachi has a large freelancing and digital-services sector. Income arrives from foreign clients by bank transfer or platform payout and from local clients by transfer or cash. The return needs each source listed, with dates and amounts, and foreign-currency receipts converted into rupees by a consistent method. Bank advices and platform statements are the supporting documents. Our freelancer tax guide explains the treatment.
Service Businesses and the Provincial Layer
A restaurant, an agency, a clinic or a consultancy in Sindh may owe sales tax on services to the provincial revenue authority in addition to income tax to FBR. The two are separate returns to separate bodies. The income-tax return we prepare deals with FBR; if your business is likely to have a provincial obligation too, we will tell you at the start so that nothing is missed.
Property, Rent and the Wealth Statement
Karachi property is valuable, and it appears on the return in three ways: rent as income, gains on sale under their own rules, and the asset itself in the wealth statement. Landlords with several tenants should keep a rent register with each tenant's name, amount and months received. Purchases in the year must be traceable to a source of funds. Our rental income guide and wealth statement guide cover the details.
Filing Season in a Big City
The return covers the year to 30 June, and the ordinary due date is 30 September; the government sometimes extends it, but planning around the extension is a gamble. In Karachi the last fortnight is crowded: banks take longer to issue statements, brokers are slow with annual reports, and everyone is trying to reach the portal together. Filing late means dropping off the Active Taxpayer List, facing higher deductions on banking and property transactions, and possibly a penalty. Our deadline guide covers the current position.
Your Paper Trail
Send your CNIC and NTN first. After that, what we need depends on how you earn: a salary certificate from your employer; year-end statements from each stockbroker; earnings statements from ride-hailing or delivery apps; customs and bank documents if you import or export; rent agreements and receipts if you let property. Everybody needs twelve months of bank statements and a rough list of what they own and owe on 30 June, plus papers for any asset bought or sold during the year.
Our Process, Step by Step
You send everything on WhatsApp, in any order. We reconcile the documents, prepare the return and the wealth statement, and send back a summary for approval. Nothing goes to FBR without your say-so. Once you agree, we file through IRIS and send the acknowledgement. The fixed fees are PKR 3,000 for salaried individuals, PKR 4,500 for freelancers and sole proprietors and PKR 7,500 for partnerships; unusual cases, such as extensive trading, are quoted after we see the papers. The pricing page lists them.
Frequent Karachi Slips
- Ignoring broker statements. Tax already deducted on trades is a credit worth claiming.
- Deducting personal fuel as a business cost. Only genuine business use is deductible.
- Mixing exchange rates. Use one method for converting foreign income.
- Forgetting the provincial layer. A service business may owe tax to the provincial authority too.
- Leaving it to late September. Gathering statements takes time.
Years You Skipped
Karachi has plenty of people who registered for a bank account or a visa and never filed. If that is you, list the years you missed and tell us roughly what you earned. We will decide which returns are worth preparing, file them in a sensible order and put you back on the Active Taxpayer List. The sooner you begin, the less there is to rebuild.
The Port, the Shipping Line and Logistics Income
Karachi's port supports a huge tail of people who earn through logistics: transporters who move containers, warehouse operators, surveyors, shipping-line agents and dock-side traders. Their income comes from many small payers, many of whom deduct tax at source. Collecting each payer's deduction slip through the year, instead of in September, is the difference between claiming all the credits and losing some of them.
Bolton Market and the Wholesale Belt
Wholesalers in the older markets often carry large stocks and deal in cash and credit at once. Their return needs a closing stock figure for 30 June, an outstanding-receivables list and a supplier-payables list. A shop that keeps a daily cash book and a customer ledger has these on hand; one that does not can rebuild them from supplier bills and bank statements, though it takes longer.
Salaried Staff With a Second Income
Banks, multinationals, hospitals and schools employ a large share of Karachi's salaried professionals. Many earn a second income on the side: private tuition, a rented flat, consultancy or a small online business. The salary certificate covers the main job only. Each side stream needs its own entry, and it is much easier to track it monthly than to reconstruct it after the year ends.
Families Who Own More Than One Property
Karachi households often hold a family home, a plot in a development scheme and a rented flat. The wealth statement lists each at the cost recorded under the rules, with the owner's name matching the title. Rent from the flat is income; the plot is an asset whose purchase needs a traceable source of funds. Keeping one folder per property, with the sale deed, the rent agreements and the tax receipts, makes the return quick.
Photographing and Sending Statements
Most banks and brokers now issue statements as downloadable files. Send the original file where you can, rather than a photograph of a screen, and check that it covers the whole year, from 1 July to 30 June. Partial statements are a common cause of delay.
Read the Summary Before We File
You will get a short summary of income, costs, tax already withheld and assets before anything goes to FBR. Go through it carefully; catching a mistake at that stage takes a minute, while correcting it afterwards means a revised return.
Students, Graduates and First-Time Filers
A first return can feel daunting, particularly for a graduate who has just started earning. It is really simple: your NTN, your salary certificate or client payments and your bank statement are usually enough. Starting in your first year of income means you never have a backlog to clear later.
Rent, Deposits and the Karachi Landlord
Karachi tenancies usually involve a security deposit as well as monthly rent. The deposit is not income while it is held, since it is owed back to the tenant, but any part you keep at the end of the tenancy is. Landlords should note deposits received and returned separately from rent, so that the bank statement and the rent register can be squared without guessing.
Commuters From Across the City
Karachi is so spread out that many people spend hours crossing it daily. There is no need to spend more hours on tax: everything is done from a phone, and a single WhatsApp conversation replaces a trip to any office. Send papers in the evening, and we get on with the rest during the working day.
File From Karachi
Send your CNIC, NTN and whatever papers you have to 0324-0400564 on WhatsApp. For a general walk-through, see how to file an income tax return in Pakistan.