Return filing, password recovery: Expert voices concern over problems facing newly-registered taxpayers

ISLAMABAD: A top Karachi-based tax expert has expressed serious concern over newly-registered taxpayers’ problems in return filing and password recovery issues which are only resolved 2-3 days ahead of return filing deadline of October 15.

In the new income tax return, there are unresolved tax credit issues besides IRIS was not responding on October 1 & a few other days too and very slow since last few days and expected to be slow in coming days till October 15, 2025.

When contacted, Asif S Kasbati, Senior Member of the ICAP Fiscal Laws Committee, told Business Recorder that that the government is targeting 10 million taxpayers under the broadening the tax base exercise.

Tax advisors are also supporting for the same. However, new registered taxpayers are facing several issues and old password recovery problems. Even several taxpayers and their representative worked on last Saturday & Sunday, but were facing several issues. These issues were only resolved 2-3 days ahead of return filing deadlines, which is surprising against government claims that the IRIS system is properly functional.

Regarding one of the Glitches, Kasbati added that tax credit (to Donors and Voluntary Pension Fund Investors) is being allowed on a lower side on IRIS, as tax credit calculation is not taking into account Surcharge.

Elaborating the matter, he explained that Tax definition includes other charge or any sum or amount leviable or payable under this Ordinance and is a broad term that includes Surcharge under section 4AB. His view is supported by section 149 wherein the words Tax under section 4AB has been used “Salary” for the tax year in which the payment is made including tax under section 4AB”. Tax credit sections 61 & 63 states the term “Tax assessed” which has been used beyond any shadow of doubts that tax assessed is as per taxpayer himself [and deemed assessed under section 120(1)(b)].

Kasbati, Pakistan Business Council Core Tax Committee Member estimated current filing number is around 5 million on October 13, 2025, which is far less than the taxpayers appearing on the Active Taxpayers List (ATL) of about 8.2 million for TY 2024.

He suggested that taxpayers on the ATL & New Taxpayer should be given an opportunity to file their returns during an extended period till November 15, 2025 or atleast October 31, 2025, which the FBR may announce on today, to avoid extension application filing headache, when already last filed extension has not been removed from IRIS so far.

Individuals, Associations of Persons (AOPs), and certain companies with year-ends between July 1, 2024, and June 30, 2025, are required to file Tax Year (TY) 2025 returns on or before September 30, 2025 (extended to October 15, 2025.

Owing to several practical reasons, Kasbati argued that an extension in the filing deadline till October 31, 2025 is inevitable, as previously allowed extension till October 15, 2025 was not sufficient. He appreciated the role of Tax Bars, Professional Accountant Forum, Pakistan Business Council in highlighting glitches in the return forms and IRIS issues.

Kasbati elaborated that under section 118 of the Income Tax Ordinance: (a) Individuals and AOPs with a year from July 1, 2024, to June 30, 2025, and (b) Companies with a year-end between July 1, 2024, and December 31, 2024, are required to file their TY 2025 returns on or before September 30, 2025.

Copyright Business Recorder, 2025