Karachi, May 1, 2025 — The Karachi Tax Bar Association (KTBA) has formally highlighted a series of functional and procedural anomalies in the IRIS portal operated by the Federal Board of Revenue (FBR), urging the tax authority to implement immediate corrective measures to improve efficiency and compliance.
In a comprehensive letter addressed to the FBR, the Karachi Tax Bar emphasized that these issues are obstructing taxpayers and tax professionals in fulfilling their obligations and are contradictory to FBR’s ongoing digitization efforts.
One major issue raised pertains to the absence of an application option under Clause (57)(3)(iii) of the Second Schedule to the Income Tax Ordinance, 2001. According to KTBA, under SRO 212(I)/2005, Commissioners are empowered to approve benevolent and group insurance funds, but the IRIS system lacks a designated section for such applications. The Karachi Tax Bar proposed adding a dedicated tab under the registration section for these funds, similar to those available for Provident, Superannuation, and Gratuity Funds. Currently, manual submissions are being rejected by Commissioners, leaving applicants without a viable route.
The second concern involves the inability of taxpayers to request amendments in non-editable fields within Form 181. Rule 82(2) of the Income Tax Rules allows the Commissioner to approve such changes, but IRIS lacks functionality to accommodate this. The Karachi Tax Bar has recommended the addition of an application mechanism within the registration tab to align digital operations with existing legal provisions.
The Bar also raised operational inefficiencies for withholding agents. When a Payment Slip ID (PSID) is generated, it does not reflect the detailed particulars—such as names, CNICs, and tax values—of each taxpayer. This lack of transparency causes verification problems. The Karachi Tax Bar suggested that IRIS be updated to provide a full list of taxpayers attached to each PSID, reducing administrative burden on the Commissioner’s office for CPR (Computerized Payment Receipt) rectifications.
Another issue involves limitations in the e-payment service, which restricts the ability to pay shortfalls in tax when the original payment is altered due to revised tax rates. The Karachi Tax Bar proposed an option for “short tax” payments, allowing withholding agents to manually enter the applicable tax section, revenue code, and amount in the IRIS interface.
Lastly, the Karachi Tax Bar flagged a critical bug in IRIS and e-FBR systems where CPRs for taxes paid under Sections 236C, 236K, and 7E fail to download, despite successful bank payments and CPR numbers showing in online verifications. The Bar urged the FBR to resolve this technical flaw permanently.
The Karachi Tax Bar reiterated its commitment to supporting FBR’s digitization efforts but stressed that a responsive and functional IRIS platform is essential to ensure transparency, reduce compliance costs, and enhance voluntary tax participation.