Notification of TY25 return form sought: IRIS still facing technical glitches: ILA

ISLAMABAD: International Lawyers Association (ILA) has conveyed to the Federal Board of Revenue (FBR) that the IRIS e-filing system continues to suffer from serious technical and functional issues, pointing towards immediate notification of final income tax return form for tax year 2025.

In a presentation to FBR Chairman, the ILA has observed that the Federal Board of Revenue, through SRO 1212(1)/2025 dated July 8, 2025, published the draft Income Tax Return under Rule 34A of the Income Tax Rules, 2002, which requires final notification within thirty days. However, despite the lapse of this statutory period, the final return for Tax Year 2025 has not yet been issued. This delay is causing serious uncertainty and operational difficulties for taxpayers and tax practitioners, and is likely to impede timely compliance with the statutory deadline of September 30, 2025.

To make matters worse, the IRIS e-filing system continues to suffer from serious technical and functional issues, including but not limited to Non-Adjustment of Tax Withheld under Section 235 in the Case of AOPs.

In cases where the declared tax liability is fully met through tax withheld under Section 235 of the Income Tax Ordinance, 2001, the system correctly shows “Nil” tax demand. However, upon submission, it issues a

Inconsistent Treatment of Tax Withheld under Sections 148 and 154: While both regimes are deemed to discharge minimum tax liability under the amended provisions, the system allows editing of income for imports (Section 148) but does not allow such editing for exports (Section 154). This inconsistency creates confusion and unequal treatment among taxpayers operating under similar mechanisms.

Non-Opening of Return Forms for Non-Resident Taxpayers: When “Non-Resident” status is selected based on the duration of stay in Pakistan, the system fails to open the return form, and even the “Review and Submission” option is disabled, effectively preventing non-residents from filing returns.

The ILA pointed out that many users are unable to log in at all, and even when login is successful, the system responds extremely slowly or hangs midway, causing delays in filing and unnecessary mental distress to taxpayers and professionals alike.

In addition to these substantive glitches, we are facing widespread technical issues:

The IRIS portal frequently hangs or becomes extremely slow after login, and in many instances fails to log in at all.

Pre-filled data from withholding statements is often incomplete or inaccurate, leading to mismatches.

The system updates to return forms and schedules reflecting legal changes are delayed. Carry-forward losses and refunds are not properly reflected. Unjustified discrepancies in wealth statement reconciliations arise even in genuine cases.

The helpdesk capacity is inadequate, causing prolonged delays in complaint resolution.

Despite repeated representations by the legal and tax fraternity to the relevant PRAL and FBR officials, the problems remain unaddressed. The persistent malfunctioning of PRAL’s software is now on the verge of paralyzing the return filing process, risking a serious loss to the national exchequer and further shaking public confidence in the country’s tax administration.

The FBR should immediately issue the final Income Tax Return for Tax Year 2025 in compliance with Rule 34A.

The FBR should rectify the identified system glitches, ensuring proper tax adjustments and consistent treatment under relevant sections.

The FBR should also resolve the non-resident filing block without delay.

The department should strengthen IRIS server performance, especially during peak filing days.

The FBR must ensure accurate and timely updates to pre-filled data.

The FBR should also enhance taxpayer and professional support services for swift resolution of issues, ILA added.

Copyright Business Recorder, 2025