Karachi, February 20, 2025 – The Federal Board of Revenue (FBR) has failed to meet the deadline for notifying the finalized FBR return forms for income tax year 2025, raising concerns among taxpayers and experts regarding compliance and regulatory adherence.
According to established rules, the FBR was required to issue the finalized FBR return forms by January 31, 2025, yet the delay continues with no official justification provided.
Tax professionals have criticized the FBR for this lapse, stating that the delay in issuing FBR return forms disrupts the filing process and adds to taxpayer uncertainty. Zeeshan Merchant, former president of the Karachi Tax Bar Association (KTBA), expressed his concerns, stating, “If the FBR itself does not comply with tax regulations, how can it expect taxpayers to adhere to filing deadlines?” He further pointed out that KTBA has repeatedly highlighted similar rule violations in previous years, yet the FBR continues to delay the issuance of FBR return forms.
As per Rule 34A of the Income Tax Rules, 2002, specific timelines govern the issuance of FBR return forms to ensure transparency and ease of compliance. The rules require the Inland Revenue Policy Wing to identify legal amendments by August 31 of the financial year, while collaboration with IT authorities, including PRAL, must finalize configuration and development by October 31. The User Acceptance Test (UAT) is to be completed by November 15 to ensure that the return forms meet technical and regulatory standards before official notification.
Stakeholders are given until January 7 to provide feedback on the draft FBR return forms, after which the final review is conducted. The finalized forms should then be uploaded on the IRIS portal by January 31. However, with the FBR missing this deadline, tax practitioners warn that last-minute changes could further complicate the filing process for taxpayers.
Given this delay, experts emphasize the need for the FBR to streamline its processes and ensure timely compliance with the law. Any additional amendments affecting the final FBR return forms must be incorporated efficiently to prevent further disruptions. Failure to do so could result in administrative burdens for both taxpayers and tax authorities, ultimately affecting overall compliance rates.