LAHORE: Taxpayers in Pakistan are facing stressful season amid glitches in the IRIS system and ongong protests, which have deterred many from submitting their income tax returns on time.
Lahore Tax Bar Association formally urged Prime Minister Shehbaz Sharif to extend the deadline for filing income tax returns, citing technical issues in Federal Board of Revenue’s IRIS system that are preventing timely submissions.
In letter sent to Prime Minister, the association highlighted multiple system errors, including incorrect calculation of tax credits and tax under Section 4AB on “AOP” (Association of Persons) income, which is legally exempt.
The letter also raised concerns over misallocation of income under the Minimum Tax Regime and errors in calculating tax on Profit on Debt under Section 151.
The association emphasized that these technical flaws have caused frustration among taxpayers and tax practitioners, with many unable to file returns on time. It also pointed out that the relevant return form was issued 219 days late, consuming a significant portion of the legal filing period.
The Lahore Tax Bar requested that the income tax filing deadline be extended to October 31, 2025, to ensure fairness and provide relief to taxpayers.
Income Tax Returns Deadline
Last month, tax officials announced extension for filing income tax returns for 2025 tax year, pushing deadline to October 15 in move comes hours before original September 30 deadline which was set to expire.
The decision signals that FBR bowed to mounting pressure from trade bodies, tax bar associations, and the general public, effectively walking back its firm promise to stick to the original deadline.
According to official statement, the extension has been issued under Section 214A of the Income Tax Ordinance, 2001. “This extension responds to requests from various stakeholders, including trade bodies and tax bar associations,” FBR said.
