LTBA Urges FBR to Release Final Income Tax Return for 2025

Muhammad Asif Rana, President of the Lahore Tax Bar Association (LTBA), has appealed to the Federal Board of Revenue (FBR) to promptly issue the final income tax return for the Tax Year 2025. He also emphasized the need to address ongoing technical issues within the IRIS e-filing system to facilitate seamless and timely compliance.

In his correspondence with the FBR Chairman, Rana pointed out that the draft income tax return was initially introduced via SRO 1212(I)/ 2025 on July 8, 2025, following Rule 34A of the Income Tax Rules, 2002. As per regulations, the final return should be made available within 30 days. However, the final version is still pending release beyond the stipulated timeframe, causing ambiguity for both taxpayers and practitioners with the September 30 filing deadline approaching.

Rana cautioned that the delay in issuing the return, coupled with persistent system malfunctions, could potentially disrupt compliance efforts, impede revenue collection, and erode public confidence in tax administration. He highlighted significant technical deficiencies in the draft return, such as the IRIS system’s inability to open forms for non-residents, the incorrect tax withheld adjustments under Section 235 for associations of persons (AOPs), and discrepancies in the treatment of tax withheld under Sections 148 and 154.

He explained that when users designate themselves as “non-resident” within the system based on their duration of stay in Pakistan, the return form fails to launch, thereby preventing non-residents from proceeding with their filings. Moreover, system-generated errors are obstructing accurate credit claims for certain withholding taxes and imposing undue difficulties on filers.

The LTBA President underscored that the timely release of the final return and the immediate correction of technical problems are critical for preserving taxpayer trust and promoting adherence to tax regulations.