ISLAMABAD: The Federal Board of Revenue (FBR) needs to immediately remove system glitches from the IRIS portal causing problems in filing of income tax returns for tax year 2025, say tax experts.
According to tax experts, one of the IRIS issues is related to the inclusion of ‘Share Income’ from AOP in Partner’s Return as Taxable Income for Applicability of Surcharge.
The share income from an association of person (AOP) is exempt in the hands of the partners, provided that the AOP has already paid tax on that income. This share income is only included in the partners’ income for the purpose of determining the tax rate.
The surcharge under Section 4AB is payable at a rate of 10% of the tax payable by any person with a taxable income exceeding Rs. 10 million.
IRIS correctly adds the share income from the AOP for rate purposes and accurately computes the tax credit. However, when determining the applicability of the surcharge, it incorrectly considers this exempt income as taxable income, thereby requiring the payment of the surcharge.
This glitch needs to be taken up with the FBR for resolution, tax experts added.
Copyright Business Recorder, 2025
Comments
Comments are closed for this article.