The Karachi Tax Bar Association has urged the FBR to correct alleged IRIS calculation errors affecting minimum tax liabilities before the September 30 deadline.
KARACHI, September 18, 2026: The Karachi Tax Bar Association (KTBA) has raised concerns over what it describes as critical computational errors in the Tax Year 2026 income tax return available on the Federal Board of Revenue’s (FBR) IRIS portal.
In a letter to FBR Member Inland Revenue (Operations) Zubair Bilal, the KTBA said the portal was incorrectly calculating the “Difference of Minimum Tax” in cases involving tax collected or deducted under Section 153 of the Income Tax Ordinance, 2001.
The association said it had received representations from taxpayers and its members regarding liabilities generated by IRIS that, in its view, lacked an identifiable statutory formula or mechanism under the Income Tax Ordinance.
According to the KTBA, the portal does not disclose the formula or assumptions used to calculate the additional liability, making it difficult for taxpayers to verify the computation.
KTBA questions minimum tax calculation
The tax bar argued that the IRIS-generated “Difference of Minimum Tax” should have a clear statutory basis and should not override the self-assessment mechanism under the Income Tax Ordinance, 2001.
It maintained that minimum-tax liability should be determined by comparing the applicable minimum tax with the normal tax computed and declared by the taxpayer in accordance with the law.
The KTBA said the calculation depends on several factors, including the nature of business activities, different streams of receipts, applicable provisions, expenses and deductions.
It therefore urged the FBR to ensure that IRIS facilitates the computation declared by taxpayers instead of replacing it with an undisclosed system-generated calculation.
KTBA alleges possible duplication of tax
The association also pointed to what it described as an apparent duplication in the treatment of tax collected or deducted under Section 153.
According to the KTBA, the current formula may, in certain cases, apply normal tax rates without properly accounting for income already subjected to minimum-tax treatment.
The association said this could result in the same income being considered more than once and generate an additional liability despite tax already having been collected or deducted at source.
KTBA seeks immediate IRIS correction
The KTBA urged the FBR to immediately review the formula and remove any system restrictions that could prevent taxpayers from making adjustments permitted under the law.
The association said the IRIS portal should serve as a mechanism for implementing tax law rather than imposing unsupported liabilities or restricting taxpayers’ statutory computations through automated calculations.
With Tax Year 2026 return filing underway and the deadline set for September 30, the KTBA called for the issue to be resolved promptly.
It also urged the FBR to allow taxpayers to disclose relevant facts and determine their liabilities in accordance with the self-assessment framework.
The KTBA said it remained available for further discussions with the FBR to resolve the matter.