LTBA asks FBR to expedite final tax return notification

LAHORE: President of the Lahore Tax Bar Association (LTBA) Muhammad Asif Rana has called on the Federal Board of Revenue (FBR) to immediately notify the final income tax return for Tax Year 2025 and resolve ongoing technical glitches in the IRIS e-filing system to ensure smooth and timely compliance.

In a letter to the FBR chairman, Rana noted the tax body had published the draft income tax return through SRO 1212(I)/ 2025 on July 8, 2025, under Rule 34A of the Income Tax Rules, 2002, which requires the final return to be issued within 30 days. However, despite the expiry of the statutory period, the final return has yet to be released, creating uncertainty for taxpayers and practitioners ahead of the September 30 filing deadline.

Rana warned that delays in issuing the return and persistent system errors could disrupt compliance, hinder revenue collection, and undermine public trust in tax administration. He highlighted key technical issues in the draft return, including IRIS’s failure to open forms for non-residents, non-adjustment of tax withheld under Section 235 for associations of persons (AOPs), and inconsistent treatment of tax withheld under Sections 148 and 154.

He said that when users select “non-resident” in the system, based on their stay in Pakistan, the return form fails to open, preventing non-residents from filing. Additionally, system-generated errors are blocking proper credit for certain withholding taxes and causing unnecessary hardship for filers.

The LTBA president stressed that prompt issuance of the final return and immediate rectification of technical issues were essential for maintaining taxpayer confidence and facilitating compliance.

Copyright Business Recorder, 2025