FBR makes electronic income tax return filing mandatory through IRIS and requires companies to submit financial statements in electronically readable formats.
ISLAMABAD: The Federal Board of Revenue (FBR) has made electronic return filing mandatory under major changes introduced to the Income Tax Ordinance, 2001 through the Finance Act, 2026.
The FBR outlined the changes in Income Tax Circular No. 2 of 2026-27, which explains key amendments relating to the electronic filing of income tax returns and associated documents.
Electronic filing through IRIS made mandatory
The FBR said sub-section (2A) of Section 114 has been substituted to require taxpayers to file their income tax returns electronically through the IRIS system in the manner prescribed by the Board.
The amended provision also empowers the FBR to make rules governing electronic filing, including procedures relating to verification, digital signatures and other matters connected with the electronic submission of returns, statements and documents.
The changes establish electronic filing as a central requirement of the income tax return process, further reducing reliance on paper-based submissions.
Companies face additional filing requirement
The FBR has introduced a specific requirement for companies under the proviso to the amended provision.
For Tax Year 2026 and onwards, companies must submit the financial statements accompanying their income tax returns only in an electronically readable file format.
The requirement is intended to ensure that financial information submitted by companies can be processed and managed through the FBR’s digital systems.
FBR expands digital tax administration
The amendments are aimed at strengthening the digital filing framework and enabling the tax authority to process, verify and manage taxpayer information electronically.
The latest measures form part of broader digitalisation initiatives introduced through the Finance Act, 2026 to modernise income tax administration and increase reliance on electronic filing and digitally processed taxpayer information.
The move is expected to further integrate taxpayers and businesses into the FBR’s digital tax administration system, while providing the Board with information in formats that can be electronically processed.