Karachi Tax Bar Association urges FBR to address legal, technical and functional issues in IRIS before taxpayers face filing difficulties.
ISLAMABAD: The Karachi Tax Bar Association (KTBA) has highlighted serious legal, technical and operational deficiencies in the Income Tax Return form for Tax Year 2026 available on the Federal Board of Revenue’s (FBR) IRIS portal, urging the tax authority to take immediate corrective measures.
In a letter to the FBR, the KTBA said the return form had been made available for filing despite the final form not yet being formally prescribed through a notification amending the Income Tax Rules, 2002.
The association noted that FBR had earlier issued draft return forms through SRO 835(I)/2026 on May 7, 2026, inviting stakeholders to submit objections and suggestions. However, despite completion of the consultation process, the final notification had yet to be issued.
According to the KTBA, merely placing the return form on the IRIS portal cannot replace the statutory requirement for its formal prescription. It warned that the situation could create legal uncertainty and expose taxpayers to potential disputes.
The tax bar also identified several technical and functional problems in the return form. These include the absence of a refund application facility for Tax Year 2026 and the lack of a downloadable acknowledgement or receipt after successful filing.
The KTBA said taxpayers also faced difficulties in reporting advances against incomplete property purchases and entering brought-forward capital where no business income was earned during the current year.
It further highlighted incomplete carry-forward of prior-year wealth statement information, calling for improved functionality to automatically transfer relevant data and reduce errors.
The association also proposed introducing an Excel upload facility to allow taxpayers to import bulk information instead of manually entering extensive schedules.
Other concerns include restrictions on partnership firm returns, difficulties in claiming tax collected under Section 235 on domestic electricity bills, and the inability to revise submitted Tax Year 2026 returns despite provisions allowing revision under Section 114(6).
The KTBA also pointed to incorrect auto-fetched tax information under Section 153 and deficiencies in the calculation of minimum tax under Section 148.
It said taxpayers should not be required to enter financial statement information manually where electronically readable financial statements have already been uploaded.
The association also called for a guided questionnaire to help taxpayers determine their tax residency status and improvements in property records, withholding tax verification and wealth reconciliation for non-resident taxpayers.
The KTBA urged the FBR to issue the final notification for the Tax Year 2026 return, resolve the identified IRIS deficiencies and deploy an updated and corrected return form to ensure legal certainty and facilitate taxpayers during the filing process.