KARACHI: The draft income tax return forms for Tax Year 2026 issued under S.R.O. 835(I)/2026 by the Federal Board of Revenue (FBR) have received detailed feedback from KTBA, which has raised multiple objections and suggestions regarding the structure, usability, and implementation of the proposed tax filing framework.
According to the submission, KTBA appreciated the FBR’s initiative to circulate draft income tax return forms for Tax Year 2026 for consultation purposes. However, it noted that meaningful review is not possible due to technical and formatting issues in the draft documents.
A major concern highlighted by KTBA is the absence of an electronic testing environment on the IRIS portal, which is essential for properly assessing computation logic, validation rules, mandatory data fields, reconciliation checks, and tax calculations linked with the income tax return system.
KTBA further pointed out that previous issues in Tax Year 2025 income tax returns, including system glitches and validation errors in the IRIS platform, were only identified after the system went live. It argued that advance testing of the income tax return forms could help prevent similar complications in the upcoming filing cycle.
Another key concern raised by KTBA relates to formatting deficiencies in the draft income tax return forms, stating that several sections appear distorted, compressed, and in some cases illegible due to poor layout and extremely small font size, making proper review difficult.
The feedback also emphasized that the expanded disclosure requirements in the Tax Year 2026 income tax return forms, including foreign assets, gifted properties, and detailed transaction reporting, require clear explanatory guidance to ensure practical compliance. KTBA stressed the need for detailed instructions covering mandatory fields, validation criteria, and linkage with the wealth statement on the IRIS tax portal.
KTBA also expressed concern over the short seven-day consultation period provided for objections and suggestions, stating that it is insufficient given the complexity of Pakistan’s income tax system. It has requested an extension of the deadline to allow meaningful input from tax professionals.
In addition, KTBA recommended that the FBR publish a comparative summary of changes between previous and current income tax return forms and introduce pilot testing involving tax bar associations and professional bodies.
KTBA also highlighted delays in compliance with Rule 34A of the Income Tax Rules 2002, noting that both draft and final income tax return forms have not been issued within the prescribed timelines, which may further complicate the Tax Year 2026 income tax filing process.
