LAHORE: The Lahore Tax Bar Association (LTBA) has formally raised concerns regarding errors detected in the electronic income tax return form for tax year 2025.
In a letter to the chairman of the Federal Board of Revenue (FBR), the LTBA pointed out discrepancies in the calculation of tax credits and surcharge adjustments within the IRIS system.
According to the letter, the miscalculation relates to tax credit under Section 92 of the Income Tax Ordinance, 2001, and the application of surcharge under Section 4AB.
The LTBA explained that the system incorrectly applies surcharge on exempt income derived from an Association of Persons (AOP) share, without first allowing the corresponding tax credit or properly adjusting minimum tax already paid. Such an error, the association warned, could lead to instances of double taxation and unnecessary tax demands.
The FBR had already extended the filing deadline for annual returns from September 30 to October 15, 2025. However, despite this extension, technical glitches continue to trouble taxpayers on the IRIS online portal. The LTBA supported its concerns with detailed workings and practical illustrations showing how the computation errors are affecting accurate filing.
The tax bar association emphasized that Section 92 credits must be applied before surcharge computation, and surcharge under Section 4AB should only be levied on the net tax payable after all admissible credits. Furthermore, it stressed that surcharge amounts should be properly adjusted against minimum tax to prevent duplication.
The LTBA has urged the FBR chairman to issue early corrective directions, ensuring smooth return filing for taxpayers and avoiding unintended tax demands or inflated refund claims.
