KTBA urges FBR to fix system deficiencies, review disclosure requirements and ensure taxpayers have adequate time to file Tax Year 2026 returns
Karachi Tax Bar Association (KTBA) has called on the Federal Board of Revenue (FBR) to take immediate remedial measures to address legal, technical and operational problems affecting the filing of income tax returns for Tax Year 2026.
In a letter to the FBR, KTBA said taxpayers and tax practitioners were facing significant difficulties on the IRIS portal as the statutory filing deadline approaches. The association referred to its earlier correspondence of May 19 and August 10, 2026, and said several concerns remained unresolved.
KTBA highlighted that the final Income Tax Return form for Tax Year 2026 was notified through SRO 1495(I)/2026 on September 2, leaving taxpayers with limited time to complete their filings. The association said the timing had created additional pressure, particularly because of the extensive information required under the new return form.
The association said taxpayers are required to provide detailed information about vehicle fleets, immovable properties, bank accounts, shareholders and partners in associations of persons. For medium-sized and large companies, compiling, verifying and reconciling such information can be a substantial exercise.
IRIS Portal Facing Technical Problems
KTBA also raised concerns over recurring downtime and slow response times on the IRIS portal. It said the system had experienced instability during peak filing periods as well as holidays, when taxpayers and professionals were attempting to complete their returns.
The association urged the FBR to ensure stable and uninterrupted access to IRIS throughout the filing period.
Several technical and functional deficiencies were also highlighted. These include incorrect calculation of additional normal tax under the minimum tax regime, a Rs200,000 restriction on adjustment of prior-year tax refunds, and the non-availability of the refund application facility for Tax Year 2026.
KTBA also called for the restoration of downloadable filing acknowledgements, saying these provide important evidence of timely submission.
Concerns Over Financial Statements and Data Requirements
The association said IRIS currently accepts financial statements in CSV format but does not accept XLSX files, despite the Income Tax Ordinance recognising both formats as electronically readable formats.
KTBA further pointed to problems affecting taxpayers with transitional or special tax years and said the portal does not allow negative figures for retained earnings and accumulated losses.
The association also criticised the mandatory disclosure of detailed shareholder information, particularly for listed companies with large and frequently changing shareholder bases. It called for system integration or bulk-upload facilities where information is already available through regulatory records.
KTBA urged the FBR to rationalise disclosure requirements, resolve the identified technical and validation issues and ensure taxpayers have a reasonable opportunity to submit complete and accurate returns.
The association said prompt action was necessary to prevent failed submissions, inaccurate declarations, potential penalties and the denial of taxpayers’ statutory rights and entitlements.