Understanding Tax Deductions in Pakistan – A Complete Guide (2025)
Learn about tax deductions in Pakistan and how to reduce your income tax legally. This guide by Filernow covers all deductible expenses and how to claim them.
Understanding Tax Deductions in Pakistan – A Complete Guide (2025)
Tax deductions can significantly lower your tax liability in Pakistan. If you know what expenses you can legally deduct, you can save a substantial amount on your income tax return. This guide explains tax deductions and how you can claim them through the FBR portal.
What Are Tax Deductions?
Tax deductions are specific expenses that the Federal Board of Revenue (FBR) allows taxpayers to subtract from their taxable income. By reducing the amount of income that is subject to tax, you pay less tax.
✅ Lower Tax Liability – Pay less tax by claiming eligible expenses.
✅ Tax Compliance – Ensure accurate tax filing and avoid penalties.
✅ Maximize Savings – Claim all deductions available under the law.
Types of Tax Deductions in Pakistan
Here are the most common tax deductions you can claim when filing your income tax return:
1. Education Expenses
Tuition fees for your children’s education (up to a certain limit).
2. Medical Expenses
Expenses related to serious health conditions are deductible for taxpayers and their dependents.
3. Charitable Donations
Donations to approved charitable organizations are eligible for tax deduction.
4. Zakat Payments
Any Zakat paid through official channels can be deducted from your taxable income.
5. Mortgage or House Loan Interest
Interest paid on a home loan for a primary residence is eligible for deduction.
6. Pension & Retirement Contributions
Contributions to voluntary pension schemes allow you to reduce your tax.
7. Investment in Mutual Funds
Certain investments in approved mutual funds can also qualify for deductions.
How to Claim Tax Deductions in Pakistan
Follow these steps to claim your tax deductions through the FBR IRIS portal:
1. Gather Documents
Collect receipts and certificates for eligible deductions.
2. Access the IRIS Portal
Log in to the FBR IRIS Portal with your CNIC.
3. Declare Your Deductions
Enter your medical expenses, education costs, and other eligible items under the deductions section.
4. Submit and Verify
Review your details and submit your income tax return.
Why Choose Filernow for Tax Filing?
At Filernow, we ensure that you claim every deduction you’re entitled to, helping you save more while staying fully FBR-compliant.
✅ Maximize Deductions – We identify all legal deductions for you.
✅ Error-Free Filing – Avoid mistakes and potential audits.
✅ Quick & Easy – Let our experts handle the entire tax filing process.
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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