Understanding Tax Deductions in Pakistan – A Complete Guide (2025)
Discover legal ways to reduce your income tax in Pakistan with this detailed guide by Filernow. Learn about all the allowable tax deductions and how to claim them correctly to minimize your tax burden.
Understanding Tax Deductions in Pakistan – A Complete Guide (2025)
Tax deductions can greatly reduce your tax liability in Pakistan. By understanding which expenses are legally deductible, you can save a considerable amount on your income tax return. This guide outlines the types of deductions available and how to claim them using the FBR portal.
What Are Tax Deductions?
Tax deductions refer to particular expenses that the Federal Board of Revenue (FBR) permits taxpayers to deduct from their taxable income. This reduction in taxable income means you’ll owe less in taxes.
✅ Lower Tax Bills – Reduce your tax by claiming qualifying expenses.
✅ Stay Compliant – File your taxes correctly and avoid penalties.
✅ Boost Savings – Make sure to claim every deduction allowed by law.
Types of Tax Deductions in Pakistan
Education Expenses
You can deduct tuition fees paid for your children’s education, subject to specific limits.Medical Expenses
Costs incurred for serious medical conditions, either for yourself or your dependents, are deductible.Charitable Donations
Contributions made to FBR-approved charitable organizations are eligible for deductions.Zakat Payments
Zakat paid through recognized channels can be subtracted from your taxable income.Mortgage or Home Loan Interest
Interest paid on loans taken for your primary residence may be claimed as a deduction.Pension & Retirement Contributions
Deposits into voluntary pension schemes help lower your overall tax bill.Investment in Mutual Funds
Investments in certain approved mutual funds can also be used to reduce taxable income.
How to Claim Tax Deductions in Pakistan
Follow these steps to claim your tax deductions through the FBR IRIS portal:
Gather Documents
Collect all relevant receipts, certificates, and proof of eligible expenses.Access the IRIS Portal
Log in to the FBR IRIS Portal using your CNIC and password.Declare Your Deductions
Under the deductions section, input details for medical bills, education expenses, and other claimable amounts.Submit and Verify
Double-check all entries, then submit your income tax return for final processing.
Why Choose Filernow for Tax Filing?
At Filernow, we make sure you claim every eligible deduction, helping you save more while staying fully compliant with FBR regulations.
✅ Maximize Deductions – We identify all legally allowed deductions tailored to your income.
✅ Error-Free Filing – Avoid mistakes that could trigger audits or penalties.
✅ Quick & Easy – Let our tax experts manage the entire filing process for you.
Claim Your Tax Deductions with Filernow Today!
Don’t miss out on valuable tax savings. Whether you’re an individual, a salaried employee, or a business owner, Filernow makes tax filing simple and stress-free.
👉 Maximize Your Savings – File Your Taxes Now
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