Withholding Tax Return Filing in Pakistan quarterly section 165 statements, filed on time

Your statement is how payees get credit for the tax you deducted

A section 165 withholding statement lists every deduction you made in the quarter, with the payee, the section, the amount paid and the tax deposited. FBR uses it to match deposits to taxpayers, so errors affect both you and the people you paid.

Under section 165 of the Income Tax Ordinance, 2001, every person required to deduct or collect tax files a statement for each quarter of the tax year on IRIS, by the 20th of the month following the quarter. The statement must reconcile with the challans (CPRs) through which the tax was deposited. Where no tax was deducted, a nil statement is still required. Late or missing statements attract penalties under section 182, and inconsistencies often trigger notices or a withholding audit.

This service covers the statements themselves. If you need help working out which payments to deduct and at what rate, see our withholding tax compliance service. Clean bookkeeping makes the quarterly statement much faster to prepare.

For each quarter we start from your payroll, payables and rent records, list every payment on which tax was deducted, and check each payee's NTN or CNIC and name. We then match every entry to the challan used to deposit the tax, flag any deduction that was not deposited or any deposit that has no matching entry, and fix the gaps before filing. If earlier quarters were missed or filed with errors, we prepare catch-up and revised statements in date order, so your record on IRIS is complete and your payees can see the credit in their own tax profiles.