KARACHI: The Karachi Tax Bar Association (KTBA) has raised concerns over the Tax Year 2026 income tax return form. The association has urged the Federal Board of Revenue (FBR) to address legal and technical issues before taxpayers face further complications.
KTBA recently highlighted several problems affecting taxpayers and tax professionals using the IRIS system. The association also questioned the legal status of the form because FBR has not yet formally notified its final version.
According to the association, these issues could create difficulties for taxpayers during the filing process. They could also lead to disputes over whether submitted returns meet the requirements under existing tax rules.
KTBA Questions Legal Status of Tax Year 2026 Form
KTBA raised its concerns in a letter addressed to Zubair Bilal, Member, Inland Revenue-Operations. The association explained that FBR circulated the draft return form in May.
The draft appeared through SRO 835(I)/2026 for stakeholder feedback. KTBA said it submitted objections during the consultation period along with other stakeholders.
However, the association noted that FBR has not yet issued a final notification under the Income Tax Rules, 2002. At the same time, the form has already become available to taxpayers through the IRIS portal.
KTBA argued that simply making the form available online does not meet the legal requirement for formal notification. The association warned that this gap could create uncertainty over the legal status of returns filed through the system.
Therefore, it has called for the final notification to be issued without further delay.
Taxpayers Face Several Technical Problems
KTBA also identified several functional problems within the Tax Year 2026 return system. These issues could make filing more difficult for taxpayers with complex financial information.
One major concern involves refunds. The association said the refund application facility has not yet been activated for Tax Year 2026.
The system also fails to generate a downloadable acknowledgement slip after taxpayers submit their returns. This creates another inconvenience for users who need a record of their filing.
KTBA further pointed to the absence of a field for advances paid toward property purchases. The problem affects cases where taxpayers paid an advance but did not complete the property purchase during the tax year.
The association also reported restrictions involving brought-forward capital. Taxpayers cannot enter this information when they have no business income during the current year.
Wealth Statements and Data Upload Issues Add to Concerns
KTBA highlighted additional problems affecting wealth statements. According to the association, some information from previous-year wealth statements does not carry forward completely.
This forces taxpayers to enter information again and could increase the time required to complete returns.
The association also called attention to the lack of a bulk Excel upload facility. Such an option would help taxpayers and professionals handling returns containing large amounts of financial data.
Another issue involves partnership returns. KTBA said the system rejects returns when partners’ profit-sharing percentages do not total exactly 100 percent.
The association also reported that taxpayers cannot update their profiles under Section 181. This restriction could create problems when taxpayer information requires correction or updating.
KTBA Urges FBR to Correct the Filing System
KTBA has asked FBR to urgently issue the final notification for the Tax Year 2026 return form. It also called for technical problems within the IRIS system to be resolved.
The association wants FBR to deploy a corrected version of the form after addressing the identified issues. It also offered to remain available for further consultation during the process.
Resolving these concerns could help reduce confusion for taxpayers and tax professionals. It could also ensure that the online filing system operates in line with the applicable legal requirements.
With the tax filing process already dependent heavily on digital systems, timely corrections remain important. A formally notified and technically functional return form would provide greater clarity and help taxpayers complete their obligations with fewer complications.
