August 11, 2025 – The Okara Tax Bar Association has raised serious concerns over persistent glitches in the annual return filing process for tax year 2025, urging the Federal Board of Revenue (FBR) to address the issues on an urgent basis.
In a formal letter to the FBR chairman, the Okara Tax Bar highlighted discrepancies in the submission of the annual return form through the IRIS portal. One of the key issues involves the non-adjustment of tax withheld under Section 235 of the Income Tax Ordinance, 2001, in the case of Associations of Persons (AOPs).
According to the tax bar, the IRIS system fails to give proper credit for tax withheld under this section. For example, if the declared tax liability is Rs10,000 and the same amount has already been withheld, the system correctly shows zero tax demand. However, upon submission, a message appears instructing the taxpayer to “Make payment of admitted liability as per code 9203,” resulting in the rejection of the return filing. The tax bar described this as an illogical system-generated anomaly that creates unnecessary hardship and delays for taxpayers.
The Okara Tax Bar also pointed out inconsistencies in the treatment of tax withheld under Sections 148 (imports) and 154 (exports). Although both are now classified as minimum tax under amended laws, the current return filing system treats them differently, creating confusion and unfairness among taxpayers operating under similar regimes. The association urged synchronization of these sections and the addition of editing options to ensure uniformity.
Another concern raised was the inability of the IRIS portal to open the return for non-residents, effectively blocking their filing process. This, the tax bar warned, is causing significant compliance challenges.
The Okara Tax Bar has called for immediate corrective measures, stressing that the deadline for filing the return of total income is approaching fast. Without timely action, these glitches could result in unnecessary penalties, legal disputes, and loss of trust in the digital tax system. The association emphasized that a smooth, fair, and transparent process is essential for improving taxpayer compliance and confidence in the FBR’s digital infrastructure.