How to Create a Challan for Salary Tax Payment to FBR

Paying salary tax to the Federal Board of Revenue (FBR) is an essential compliance requirement for withholding agents in Pakistan. The process is straightforward, and you can generate a challan either by logging into your withholding agent account or through FBR’s e-Payments portal without logging in. This guide provides step-by-step instructions for both methods.

Step 1: Access the FBR Portal

1. Visit the FBR website.
2. Navigate to the e-Payments section on the homepage.
3. If you are a withholding agent with account access, log in. If not, you can proceed without logging in.

Step 2: Select the Withholding Tax Option

1. Under the e-Payments section, locate the Withholding tab.
2. Choose the Adjustable Income Tax category for salary tax payments.

Step 3: Enter Required Information

1. If Logged In: The system will automatically enter the withholding agent’s NTN and relevant details.
2. If Not Logged In: Manually enter the NTN of the withholding agent. Provide the taxable amount and the tax to be paid. Enter the CNIC/NTN of the payer.

Step 4: Add Multiple Entries (Optional)

To upload multiple salary tax entries: Download the sample file provided in the e-Payments portal. Maintain your data in an Excel file and update it annually after the financial year ends. Ensure the data matches the prescribed format in the sample file. Attach the file while creating the challan.

Step 5: Select Tax Year and Month

Choose the relevant tax year and month for which the salary tax is being paid. For example, if paying taxes for December but making the payment in January, select December as the tax month. This ensures clear representation in tax records.

Step 6: Generate and Receive Challan

1. Submit the entered details to generate the challan.
2. A notification for challan creation will be sent to the registered email address.
3. Save the challan for payment at a bank or via online banking if applicable.

Tips for Compliance

• Update Records: Ensure all withholding tax data is updated annually at the end of the financial year.
• Accuracy Matters: Double-check taxable amounts, CNIC/NTNs, and tax amounts to avoid errors.
• Timely Payments: Always make payments within the specified deadlines to avoid penalties or notices from FBR.

This article was published at A Step-by-Step Guide on Creating a Challan for Salary Tax Payment