ISLAMABAD: The Federal Board of Revenue (FBR) has launched the new income tax return form for Tax Year 2026 with multiple reported bugs resulting in technical problems being faced by taxpayers and advisers while filing of returns.
A tax expert has urged the FBR to ensure that the growing use of Artificial Intelligence (AI) in tax administration does not undermine the role of tax consultants, advocates and other qualified professionals, stressing that technology should assist professional intelligence rather than replace it.
Dispelling the claims of stakeholders, the FBR sources stated that the new return has transitioned from a static form to a highly dynamic interface designed to guide the taxpayer through tax laws seamlessly.
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The Return of Income Tax for Tax Year (TY) 2026 represents a significant leap forward. Redesigned in strict accordance with the Digital Transformation of the FBR, as envisioned by Prime Minister, the new system is built to capture accurate data, link assets with incomes, and facilitate taxpayers through advanced data integration.
Far from being flawed, the current system is operating exactly as designed to ensure compliance.
FBR sources further stated that the system dynamically adjusts to the taxpayer’s specific sources of income. For example, a salaried individual will now only see the portions of the return relevant to their income, removing unnecessary clutter and confusion.
The FBR recognized that the newly introduced feature regarding immovable property has generated queries from various taxpayers and tax bodies.
This feature was deliberately introduced to ensure data accuracy by establishing vital linkages between property, rental, and agricultural income.
While calculating Capital Gains Tax (CGT) is inherently complex, the tax year (TY) 2026 return simplifies the entire process for the user. The system now calculates the tax automatically—the taxpayer is only required to input the sale value and the sale date.
To bridge any understanding gaps regarding these new requirements, FBR has developed a comprehensive User Manual and a detailed video tutorial on Property Management, both of which are readily available on the IRIS portal.
The ultimate proof that the return has become easier, dynamic, and effective is evident in the filing data.
Copyright Business Recorder, 2026
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