ISLAMABAD: The Federal Board of Revenue (FBR) has faced significant technical challenges with its newly launched income tax return for Tax Year 2026, with sources reporting around 500 bugs and technical issues in the initial version.
The issues have created difficulties for taxpayers and tax advisers as the September 30, 2026, filing deadline approaches.
According to sources, the new return was deployed by Pakistan Revenue Automation Limited (PRAL) after the FBR issued Change Request Forms (CRFs) containing amendments arising from tax measures approved under the federal budget.
A CRF is a formal instruction through which the FBR communicates required changes to the IRIS system, including amendments to tax declarations, calculations and other system functionalities.
PRAL serves as the FBR’s technical implementation arm and develops and updates the IRIS system according to requirements provided by the tax authority’s domain teams. The FBR has also attached more than two dozen Inland Revenue Service (IRS) officers to PRAL, including a Chief Revenue Domain Officer and other Domain Officers.
These officers are responsible for coordinating tax requirements with the technology team and participating in different stages of the Software Development Life Cycle (SDLC). They also oversee Business Requirement Specifications (BRS) and Change Request Forms (CRFs), while having access to PRAL data for audits, compliance and revenue optimisation.
Sources said the initial version of the delayed Tax Year 2026 income tax return contained approximately 500 bugs and other technical problems after its launch.
PRAL subsequently began resolving the reported issues, with the number of outstanding problems declining considerably. Sources said many of the technical issues were resolved after the migration from older equipment to new infrastructure.
Despite the technical difficulties, taxpayers have continued filing their returns. According to FBR data, approximately 808,719 income tax returns had been filed by August 13, 2026, compared with around 747,050 returns during the corresponding period last year.
However, sources said tax collection through the returns filed so far remains lower than the amount recorded during the same period last year.
The high number of reported bugs has also raised concerns about the FBR’s testing and quality assurance procedures for its digital tax systems.
Sources said the new return should have undergone comprehensive testing and quality clearance before being made available to taxpayers. Instead, the system was reportedly launched while a substantial number of technical issues remained unresolved.
Although PRAL has since worked to address the problems, the initial bug count has raised questions about whether adequate testing was completed before the return was opened for public filing.
The FBR, however, has defended the new return, describing it as a significant advancement in its digital transformation agenda.
An FBR spokesperson said the Tax Year 2026 return has been redesigned to improve data accuracy, establish stronger links between assets and income, and facilitate taxpayers through greater data integration.
The FBR rejected the impression that the system is fundamentally flawed, stating that it is operating according to its intended design and is aimed at strengthening tax compliance.
The new return has moved from a static form to a dynamic interface that guides taxpayers according to their relevant tax requirements. For example, salaried individuals are shown sections relevant to their sources of income, reducing unnecessary information and simplifying the filing process.
The FBR also addressed concerns regarding the newly introduced immovable property feature. According to the spokesperson, the feature was deliberately introduced to improve data accuracy by establishing links between property ownership, rental income and agricultural income.
The new system also simplifies the calculation of Capital Gains Tax (CGT), which can otherwise be a complicated area of taxation. Under the new mechanism, CGT is calculated automatically after taxpayers enter the sale value and sale date.
The FBR said its joint team with PRAL remains committed to resolving taxpayer complaints and technical issues and ensuring a smoother, transparent and modernised tax filing process.
With the September 30, 2026 deadline approaching, taxpayers and tax advisers are expected to continue using the new return while PRAL works to resolve the remaining technical issues.
