LAHORE: The Lahore Tax Bar Association (LTBA) has raised concerns over serious computation errors detected in IRIS, the Federal Board of Revenue’s (FBR) online return filing portal, just days ahead of the September 30 filing deadline for tax year 2025.
In a formal letter dated September 22, 2025, LTBA President Muhammad Asif Rana informed the FBR Chairman that IRIS is incorrectly calculating tax liabilities under specific provisions of the Income Tax Ordinance, 2001. The association highlighted miscalculations related to tax credit under Section 92, as well as the faulty application of surcharge under Section 4AB on exempt income shares from Associations of Persons (AOPs). These computation errors, if unaddressed, could lead to double taxation and unjustified demands on taxpayers.
The LTBA recommended two urgent corrective measures for IRIS. First, when Section 92 applies, the tax credit on AOP shares must be granted before any surcharge computation is made. Second, surcharge under Section 4AB should be applied only on the net tax payable after all admissible credits, ensuring taxpayers are not penalized twice for the same income.
The association further urged the FBR to issue an immediate corrigendum directing the IRIS technical team to amend the system. It also called for adjustments or refunds for cases where surcharge has already been wrongly computed on AOP income.
Additionally, the LTBA requested the FBR to issue a public clarification for both taxpayers and practitioners regarding the correct computation of surcharge in such cases. Early remedial action, the association emphasized, would restore confidence in IRIS and enable accurate filing before the deadline.
