Lahore – Leading tax professionals, chartered accountants, and legal advisers have raised alarm over serious hurdles in filing income tax returns for Tax Year 2025, warning that unresolved issues could prevent timely compliance with the September 30 statutory deadline.
In a formal letter to Federal Board of Revenue (FBR) Chairman, the International Lawyers Association (ILA) highlighted both procedural delays and severe technical faults in the IRIS e-filing system.
Delay in Final Return Form Issuance
The ILA noted that under SRO 1212(1)/2025, issued on July 8, 2025, FBR was required to finalise the draft Income Tax Return within 30 days in accordance with Rule 34A of the Income Tax Rules, 2002. However, the final form has still not been released, creating uncertainty for taxpayers and practitioners.
Key Glitches in IRIS System
According to the ILA, ongoing system malfunctions are further complicating the process:
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Section 235 adjustments for AOPs: Cases where tax liability is fully met through withholding under Section 235 initially show a “Nil” demand, but after submission, the system still generates an incorrect demand notice.
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Inconsistent treatment under Sections 148 and 154: While both are deemed to discharge minimum tax liability, IRIS allows editing of income for imports (Section 148) but not for exports (Section 154).
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Non-resident return filing block: Selecting “Non-Resident” status prevents the return form from opening, and even the “Review and Submission” option is disabled.
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Login and performance failures: Many users cannot log in; those who do often face slow speeds, freezes, or mid-process system hangs.
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Data inaccuracies: Pre-filled withholding data is often incomplete, creating mismatches. Legal changes in return schedules are delayed, and carry-forward losses or refunds are not reflected correctly.
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Wealth statement discrepancies: Even genuine cases face unjustified mismatches.
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Helpdesk delays: Insufficient support capacity results in slow complaint resolution.
Risk to Compliance and Revenue
ILA warned that continued inaction by FBR and PRAL could “paralyse the return filing process,” cause significant losses to the national exchequer, and further erode public trust in Pakistan’s tax administration.
Recommendations by ILA
The association urged FBR to:
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Immediately issue the final return form for Tax Year 2025 in line with Rule 34A.
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Fix system bugs to ensure proper tax adjustments and consistent treatment under Sections 148 and 154.
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Unblock non-resident return filing without delay.
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Upgrade IRIS server performance, particularly during peak filing days.
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Ensure accurate pre-filled data and timely legal updates.
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Enhance support services to provide faster resolutions for taxpayers and professionals.
The ILA — a global, non-profit body with over 3,000 members including senior advocates, law firms, and tax practitioners — has been actively advocating for taxpayer rights through its Lahore Chapter, which represents the concerns of Pakistan’s legal and tax community.