Pk Return Assembly

Pakistan — Return Assembly (Capstone) — Skill v1.0

General reference only. This skill is general tax/accounting reference material for AI-assisted workflows. It has not been reviewed for any specific person's facts, documents, elections, deadlines, residency, filing status, or local procedures. Do not rely on it to file, pay, amend, or take a tax position without review by a qualified professional in the relevant jurisdiction.

CRITICAL EXECUTION DIRECTIVE — READ FIRST

When this skill is invoked, the user has already passed through intake and the relevant content skills. They want their finished IRIS working paper. Execute all steps without pausing for permission.

Specifically:

• Do NOT ask "do you want me to assemble the full package". The user asked for the return. Produce it.
• Do NOT re-interrogate the user about residency, NTN, CNIC, or business structure — intake already captured this; trust the upstream packages.
• Do NOT pause between reconciliation steps to check in. Run all cross-checks in sequence; flag failures in the reviewer brief and continue.
• Self-checks are targets, not blockers. If a check fails, note it under "Reviewer Attention Flags" and continue.
• Do NOT submit anything to FBR IRIS. This skill produces a working paper plus filing instructions. A credentialed reviewer (ICAP CA, ICMAP, or ACCA-PK with Pakistan practising rights) must review, and the taxpayer (or authorised filer / e-intermediary) submits via IRIS.

If you feel the urge to ask "how should I proceed", pick the most defensible path, proceed, and flag the decision for the reviewer.

What this file is

The final capstone skill for Pakistani annual tax returns. It consumes the outputs of every other Pakistan skill and assembles a single unified working paper covering either:

• Individual / AOP Return — annual return under section 114 of the Income Tax Ordinance 2001, including salaried persons, sole proprietors, and Association of Persons (AOP) members
• Company Return — annual return under section 114 for resident companies (Private Limited, Single Member Company, Public Listed Company)

The output is a reviewer-ready package: line-by-line IRIS working paper, cross-skill reconciliation table, payment instructions (PSID via IRIS → CPR via designated banks), filing instructions, reviewer checklist, taxpayer action list, ATL update note, and 2026-27 planning notes.

Section 1 — Quick reference

1.1 What this capstone produces

A single reviewer-ready package containing:

1. Master working paper (Excel) — IRIS-aligned schedules, cross-skill reconciliation, PSID register
2. Reviewer brief (Markdown) — executive summary, computation walk-through, positions taken, attention flags
3. Taxpayer action list (Markdown) — payments to make, PSIDs to generate, IRIS submission steps, deadlines, ATL implications, record retention
4. 2026-27 planning notes — quarterly advance tax (section 147), withholding-as-collector obligations, Finance Act 2025 transitional items

Section 2 — Required inputs from upstream PK skills

The assembly skill does not recompute anything. It expects structured outputs from the following upstream skills. If an upstream skill did not run, the assembly notes the gap and continues with available data.

2.1 Individual / AOP return — inputs

2.2 Company return — inputs

2.3 Intake-required identifiers

If any identifier is missing, the assembly skill flags it as "Needs Input" and produces the working paper with placeholders rather than halting.

Section 3 — Assembly workflow

The capstone runs in seven phases. Each phase reads upstream output, runs reconciliation, and writes a section of the master working paper.

3.1 Phase 1 — Read intake & confirm scope

• Confirm taxpayer type: salaried individual / non-salaried individual / AOP / company
• Confirm tax year (TY 2026 = 1 Jul 2025 – 30 Jun 2026 unless special year-end approved u/s 74)
• Confirm residency (section 82): for individuals, 183-day rule; for companies, incorporation or control & management in Pakistan
• Confirm Finance Act 2025 applies (the Act received Presidential assent on 29 June 2025 for TY 2026)

3.2 Phase 2 — Income reconciliation

For individuals:

For companies:

3.3 Phase 3 — Tax computation

• Apply slab rates for individuals (TY 2026 brackets per Finance Act 2025 — see pk-income-tax for current figures)
• Apply 29% corporate rate (or 20% small company rate u/s 2(59A) / banking 39% / SME rates) for companies
• Compute super tax under section 4C (income > Rs 150 million bands per Finance Act 2025 transitional)
• Compute minimum tax under section 113 (turnover-based) — applies if higher than normal tax
• Compute alternative corporate tax under section 113C
• Add applicable surcharge (Finance Act 2025 transitional may introduce surcharge thresholds — confirm at filing time)

3.4 Phase 4 — Adjust for credits and payments

3.5 Phase 5 — Cross-skill reconciliation

Run all cross-checks in Section 4 below. Each check is pass / fail / flagged. The output table goes into the reviewer brief.

3.6 Phase 6 — Payment instructions

Generate the PSID register: for each amount due (income tax balance, super tax, surcharge, monthly sales tax, payroll tax u/s 149, EOBI), produce a row with payment head, tax year, period, amount, and which IRIS module the PSID is generated from. Section 6 below details the PSID-to-CPR flow.

3.7 Phase 7 — Final assembly

• Build the master Excel workbook
• Write the reviewer brief
• Write the taxpayer action list
• Note the ATL update implication
• Generate 2026-27 planning notes

Section 4 — Working paper structure (for credentialed reviewer)

The reviewer is an ICAP CA (Institute of Chartered Accountants of Pakistan), ICMAP (Institute of Cost and Management Accountants of Pakistan), or ACCA-PK member with Pakistan practising rights. They sign off before IRIS submission.

4.1 Master workbook sheets

4.2 Cross-skill reconciliations

Cross-checks must each pass within tolerance (PKR 100 default; PKR 1,000 for companies). Failures flagged, not silently absorbed.

Cross-check 1 — Revenue reconciliation

Cross-check 2 — Salary withholding & EOBI

Cross-check 3 — Withholding agent obligations

Cross-check 4 — Advance tax under section 147

Cross-check 5 — Capital gains

Cross-check 6 — Adjustable vs. final tax classification

Pakistan distinguishes between "adjustable" tax (creditable against final liability) and "final tax" / "minimum tax" regimes. Misclassification is a common error.

Each item must be flagged in the right column. Reviewer to verify against Finance Act 2025 reclassifications.

Cross-check 7 — Wealth statement reconciliation (individuals)

Unexplained accretion to wealth is treated as income under section 111 (unexplained income & assets). Flag any unreconciled gap.

Cross-check 8 — Tolerance discipline

For individuals: PKR 100 default tolerance. For companies: PKR 1,000 default tolerance. Discrepancies between PKR 100 and PKR 10,000 — flag and proceed. Above PKR 10,000 — raise as "Needs Input" before sign-off.

Section 5 — Tax computation summary (PIT or CIT bottom line)

The bottom line of the return appears in the reviewer brief executive summary.

5.1 Individual / AOP bottom line

Total taxable income (after all adjustments)         PKR X
Tax on taxable income per slab                       PKR X
Plus: Super tax (s.4C, if income > threshold)        PKR X
Plus: Surcharge (Finance Act 2025 transitional)      PKR X (TBC)
Less: Tax credits (s.61 etc.)                        PKR X
= Gross tax liability                                PKR X
Less: Adjustable tax withheld (s.149–158, 231)       PKR X
Less: Advance tax paid (s.147 — four quarters)       PKR X
Less: Foreign tax credit (s.103)                     PKR X
= Net tax payable / (refundable)                     PKR X

5.2 Company bottom line

Accounting profit before tax                         PKR X
Plus / less: Tax adjustments                         PKR X
= Taxable income                                     PKR X
Tax at 29% (or applicable rate)                      PKR X
Plus: Super tax (s.4C bands)                         PKR X
Higher of: above vs. minimum tax (s.113) vs. ACT     PKR X
Less: Tax credits                                    PKR X
= Gross tax liability                                PKR X
Less: Adjustable tax withheld                        PKR X
Less: Advance tax paid (s.147)                       PKR X
= Net tax payable / (refundable)                     PKR X

5.3 Refund treatment

If net is refundable: claim is made in the IRIS return; FBR typically processes via section 170. Refunds may take several months. Do not expect immediate disbursement.

If net is payable: must be paid via PSID before filing the return (see Section 6).

Section 6 — Payment instructions — PSID via IRIS, CPR, e-payment

All tax payments in Pakistan flow through the PSID → CPR mechanism.

6.1 The PSID-to-CPR flow

1. Log into IRIS at https://iris.fbr.gov.pk with NTN + password
2. Navigate to "Payments" → "Create Payment" (some users see "e-Payments")
3. Select tax head — Income Tax (for annual settlement), Withholding (s.149/153/155/156 etc.), Sales Tax (STR-7), Federal Excise, etc.
4. Select payment nature — Admitted income tax (for return balance), advance tax (s.147), minimum tax adjustment, super tax, etc.
5. Enter tax year, period, and amount
6. Generate PSID — IRIS issues a Payment Slip ID (PSID), valid for a defined window (typically 7 days, varies by tax head)
7. Pay via designated bank — present PSID at any branch of a National Bank of Pakistan (NBP), State Bank of Pakistan (SBP) authorised branch, or any Scheduled Bank linked to FBR (1Link), via:
   • Bank teller (cash/cheque)
   • Internet banking (most major banks have an FBR tab)
   • Mobile banking
   • ATM (1Link enabled)
8. Receive CPR — Computerized Payment Receipt — this is the legal proof of payment
9. CPR auto-feeds to IRIS — appears against the taxpayer's NTN ledger; the PSID closes
10. Reference the CPR in the return — CPRs are auto-populated for many heads but verify before submission

6.2 Common tax heads / PSID nature mapping

TBC — verify current PSID dropdown options in IRIS at the time of payment. The list below is the conventional 2024-25 mapping; Finance Act 2025 may have introduced reclassifications. Always confirm against the live IRIS dropdown.

6.3 Payment timing relative to filing

Rule: The CPR must exist before the s.114 return is submitted, otherwise the credit cannot be applied against the demand on the return.

6.4 Default surcharge on late payment

Section 7 — Filing instructions — IRIS

7.1 Filing channel

All Pakistani income tax returns are filed electronically through IRIS (https://iris.fbr.gov.pk). Manual paper returns are not accepted for normal taxpayers.

7.2 Filing channels by taxpayer type

7.3 Submission steps

1. Pay first — all admitted tax must be settled (CPRs issued) before submission
2. Log into IRIS (NTN + password; companies may use a representative login)
3. Navigate to "Declaration" → "114(1) — Return of Income"
4. Pre-fill check — IRIS pre-populates certain fields from CPRs and s.165 statements; verify each against the working paper
5. Upload supporting documents as required:
   • Audited / unaudited financial statements (companies)
   • Auditor's report (where audit required under Companies Act 2017)
   • Wealth statement (individuals — section 116)
   • Wealth reconciliation
   • Schedule of foreign income and foreign assets (if applicable, sections 116A and 165B)
6. Validate — IRIS runs schema and arithmetic checks; resolve any errors
7. Submit — receive IRIS acknowledgement with submission reference and timestamp
8. Save acknowledgement — this is the legal proof of filing and must be retained

7.4 Deadlines (tax year 2026 = 1 Jul 2025 – 30 Jun 2026)

7.5 Extension of time

7.6 Late filing penalties

Section 8 — ATL update

8.1 What is ATL?

The Active Taxpayer List (ATL) is published by FBR weekly. A person appears on the ATL if they have filed their s.114 return for the most recent tax year by the deadline (or by a stipulated grace cut-off).

8.2 ATL implications

• On ATL: Lower withholding rates apply (normal rates per Division & Part of First Schedule)
• Not on ATL: Increased withholding under the Tenth Schedule — frequently 2x the normal rate (some items 4x). Examples:
  • Cash withdrawal (s.231A): Filer 0.6% — non-filer rate per Tenth Schedule
  • Vehicle registration / token tax (s.231B / 234): Filer vs. non-filer differentials
  • Property transfer (s.236C / 236K): Filer vs. non-filer differentials
  • Banking transactions (various 236 series items)

8.3 How the return updates ATL

• File s.114 return by deadline → name appears in next ATL update (typically within 1–2 weeks)
• File late but within grace period → may still appear, possibly with surcharge for ATL late inclusion (Rs 1,000 individual / Rs 10,000 AOP / Rs 20,000 company — verify current schedule)
• ATL effective period: 1 March to 28/29 February of following year (e.g., ATL TY 2025 effective 1 March 2026 – 28/29 February 2027)

8.4 Action list item

Every return assembly package must include in the action list:

ATL implication:
- Filing on time (by [deadline date]) → ATL active for period [1 March 2027 – 28/29 February 2028]
- Late filing → withholding rates double under Tenth Schedule until ATL reactivation surcharge paid
- Surcharge for ATL late activation (TY 2026): Rs [TBC — verify current schedule] for [filer category]

Section 9 — Year-end planning notes — Finance Act 2025 transitional

9.1 Bracket changes

The Finance Act 2025 amended Personal Income Tax slabs and corporate rates effective TY 2026. The pk-income-tax skill carries the current bracket table. The capstone references but does not duplicate it. Confirm at time of computation that pk-income-tax is on the Finance Act 2025 brackets, not the prior year's.

9.2 Super tax bands (Section 4C)

Section 4C super tax applies to high-income persons and certain sectors. Finance Act 2025 may have restructured the bands. The pk-corporate-tax and pk-income-tax skills hold the current rate table. Confirm at computation time. Typical bands historically:

TBC — verify against Finance Act 2025 because bands and rates may have shifted.

9.3 Surcharge thresholds

Finance Act 2025 introduced / revised surcharges on high-income individuals. The pk-income-tax skill carries the current surcharge mechanism. Confirm at computation time.

9.4 Quarterly advance tax plan for TY 2027

The capstone produces a quarterly schedule:

Estimated tax for TY 2027 = (Last assessed tax × current year turnover / last year turnover), or any reasonable basis under section 147(4A).

9.5 Withholding agent obligations for TY 2027

If the taxpayer (especially a company) is a withholding agent under sections 153, 155, 156, etc.:

• File monthly statements u/s 165 (or quarterly under section 165(1) for some classes — verify Finance Act 2025)
• Deposit withholding by 7th of following month (private sector)
• Issue withholding certificates to deductees per section 164

9.6 Sales tax planning

• Federal STR-7 monthly: due by 18th
• Provincial sales tax on services: each province has its own portal and due date (typically 15th – 21st)
• Annual sales tax reconciliation: not a separate form, but auditor and reviewer should reconcile annual STR-7 totals to financial statements revenue

9.7 Sector-specific considerations

Section 10 — Reviewer attestation block

The reviewer brief contains an attestation block:

# Reviewer Attestation — [Taxpayer Name] — TY 2026

Reviewer name: ____________________________________
Membership body: [ ] ICAP CA   [ ] ICMAP   [ ] ACCA-PK with Pakistan practising rights
Membership number: ____________________________________
Date of review: ____________________________________

I have reviewed:
[ ] Income computation per pk-income-tax / pk-corporate-tax
[ ] Withholding schedule per pk-withholding-tax with CPR verification
[ ] Sales tax cross-check per pk-sales-tax-federal / pk-sales-tax-services
[ ] Payroll & EOBI per pk-payroll-eobi
[ ] Capital gains per pk-cgt
[ ] Entity records per pk-formation
[ ] Wealth statement (individuals)
[ ] Cross-skill reconciliations within tolerance
[ ] All positions taken have legislative citations
[ ] ATL implication noted

Sign-off: ____________________________________

I confirm the return is ready for IRIS submission and that the taxpayer / authorised filer has been provided with the action list and PSID register.

Section 11 — Final taxpayer action list template

# Action List — [Taxpayer Name] — TY 2026

## Immediate (before s.114 return filing)

### For individuals / AOPs — deadline 30 September 2026:
1. Generate PSID for income tax balance of PKR X (Tax head: Income Tax — Annual; Period: TY 2026) in IRIS
2. Pay via 1Link bank channel (internet/mobile banking) or NBP branch; obtain CPR
3. Verify all monthly withholdings (June 2026 final month) deposited and reflected in IRIS ledger
4. Verify all s.147 quarterly advance tax instalments (Sep 2025, Dec 2025, Mar 2026, Jun 2026) have valid CPRs
5. Upload financial statements (if required), wealth statement, wealth reconciliation
6. Submit s.114 return in IRIS → save acknowledgement
7. Confirm ATL appears in next FBR weekly update

### For companies — deadline 31 December 2026 (for 30 June year-end):
1. Generate PSID for company income tax balance of PKR X (Tax head: Income Tax — Annual; Period: TY 2026)
2. Pay via 1Link / NBP; obtain CPR
3. Generate PSID for super tax (s.4C) if applicable
4. Verify all monthly withholding deposits and s.165 statements filed
5. Verify s.147 quarterly advance tax instalments paid
6. Upload audited financial statements and auditor's report
7. Submit company s.114 return in IRIS → save acknowledgement
8. File annual EOBI return (typically by employer's pension fund process)

## Monthly compliance through TY 2027

| Item | Tax head | Due |
|---|---|---|
| Withholding (s.149 salary, s.153 supplies/services, s.155 rent, etc.) | Section-specific PSID | 7th of following month |
| Monthly sales tax (STR-7) | Sales Tax — Federal | 18th of following month |
| Provincial sales tax on services (PRA / SRB / KPRA / BRA) | Province portal | Each province's calendar |
| Quarterly s.165 statement | Statement upload in IRIS | Within 30 days of quarter-end |
| EOBI contributions | EOBI portal | 15th of following month |

## Quarterly advance tax (Section 147) — TY 2027

| Quarter | Due | Estimated amount |
|---|---|---|
| Q1 | 15 September 2026 | PKR X |
| Q2 | 15 December 2026 | PKR X |
| Q3 | 15 March 2027 | PKR X |
| Q4 | 15 June 2027 | PKR X |

## Record retention

Per section 174 ITO 2001, records must be retained for **6 years** from end of the tax year (longer if assessment under reassessment proceedings). Records include:
- Books of account (general ledger, cash book, sales register, purchase register)
- CPRs (Computerized Payment Receipts)
- IRIS submission acknowledgements
- Withholding certificates issued and received
- Sales tax invoices and STR-7 acknowledgements
- Bank statements
- Wealth statement supporting (individuals)
- Financial statements and auditor's reports (companies)

Records must be kept in Pakistan or in a manner accessible to the Commissioner. Electronic records permitted under section 174(2A).

Section 12 — Refusals

R-PK-ASM-1 — Upstream skill did not run. Name the missing skill. Continue with available data; flag the gap; do not fabricate the missing computation.

R-PK-ASM-2 — Upstream self-check failed. Note the specific check; continue but flag.

R-PK-ASM-3 — Cross-skill reconciliation > PKR 10,000. Raise as "Needs Input"; do not silently round.

R-PK-ASM-4 — Out of scope: petroleum exploration (Fifth Schedule), insurance (Fourth Schedule), banking (specialised rules), modarabas, mutual funds, oil & gas concession agreements, group taxation under section 59AA / 59B, controlled foreign company rules (section 109A), tax holidays under Second Schedule clauses, special zones (Gwadar Free Zone, Khyber Pakhtunkhwa Special Economic Zones), agricultural income (provincial), provincial taxes other than sales tax on services. Flag for human specialist; do not attempt.

R-PK-ASM-5 — Out of scope: non-resident individuals, mixed-residency years, expatriate package taxation under section 12(2), Pakistan-source income for non-residents requiring section 152 final tax analysis. Refer to a specialist; this skill assumes full-year Pakistani tax residency unless explicitly handled by pk-income-tax with non-resident schedules.

R-PK-ASM-6 — Intake incomplete. Name the missing intake field (NTN, CNIC, CUIN, STRN, IRIS credentials, residency status). Cannot finalise the return until provided.

R-PK-ASM-7 — Asked to submit to IRIS. This skill produces a working paper. Submission is the taxpayer's (or their authorised filer's / e-intermediary's) action, after credentialed reviewer sign-off. Decline politely; provide the filing instructions instead.

R-PK-ASM-8 — Asked to confirm rates / brackets / thresholds against Finance Act 2025 without verification. Defer to pk-income-tax / pk-corporate-tax which carry the verified Finance Act 2025 figures. Flag any figure used here as "verify against current upstream skill output".

Section 13 — Self-checks

Check PK-ASM-1 — All upstream skills required for the chosen form have produced output, or the gap is flagged.

Check PK-ASM-2 — Revenue reconciles between pk-corporate-tax / pk-income-tax, pk-sales-tax-federal, and pk-sales-tax-services within tolerance.

Check PK-ASM-3 — Withholding tax credits sum correctly across s.149/153/155/156/231A/231B/233/235/236 series, with each credit backed by a CPR visible in the IRIS ledger.

Check PK-ASM-4 — Section 147 quarterly advance tax instalments are present and reconcile to CPRs.

Check PK-ASM-5 — Salary withholding (s.149) and EOBI ties to pk-payroll-eobi monthly statements u/s 165.

Check PK-ASM-6 — For companies: tax adjustments (book to tax) are itemised with legislative basis (admissible / inadmissible per ITO sections).

Check PK-ASM-7 — Capital gains correctly split between s.37A (listed securities), s.37(1A) (immovable property), and s.37 (other).

Check PK-ASM-8 — Adjustable vs. final vs. minimum tax classifications are correctly applied per Finance Act 2025.

Check PK-ASM-9 — Wealth statement (individuals) reconciles within tolerance; any unexplained accretion flagged under s.111.

Check PK-ASM-10 — Super tax (s.4C) and any applicable surcharge are computed using the figures from pk-income-tax / pk-corporate-tax (not duplicated here).

Check PK-ASM-11 — Minimum tax (s.113) and alternative corporate tax (s.113C) considered for companies; higher of normal / minimum / ACT applied.

Check PK-ASM-12 — ATL implication note included in the action list with exact ATL effective period.

Check PK-ASM-13 — Filing deadline (30 September or 3

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