The Lahore Tax Bar Association (LTBA) has called on Prime Minister Shehbaz Sharif to extend the income tax return filing deadline for the tax year 2025 to November 30. The association cited persistent technical glitches in the Federal Board of Revenue’s (FBR) IRIS portal, which continue to prevent taxpayers from submitting their returns on time. Despite an earlier extension until October 31, the system still faces severe flaws that have disrupted return filings nationwide.
In a formal letter to the Prime Minister, LTBA President Muhammad Asif Rana highlighted that “serious system errors” have paralyzed taxpayers’ ability to comply with deadlines. He stressed that unresolved issues in the IRIS system have caused frequent crashes, incorrect tax calculations, and incomplete submissions. The association warned that without another extension, a large number of filers could miss the deadline due to no fault of their own, leading to penalties and widespread frustration.
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The LTBA identified several major technical and legal inconsistencies in the FBR system. One of the most critical is the incorrect application of tax credits and the 10% super tax under Section 4AB on income that is legally exempt under Section 92 of the Income Tax Ordinance. The portal is also miscalculating taxes under the minimum tax regime, resulting in inflated liabilities. Additionally, it is wrongly applying Section 151 instead of Section 7B for tax on profit on debt, which has caused over-taxation and confusion among taxpayers.
Furthermore, the association criticized the FBR for failing to publish the manual return form required under Rule 73(2DD) of the Income Tax Rules, 2002. This omission has made it nearly impossible for individuals without reliable internet access to file returns manually. The LTBA also pointed out that the final return form was released on July 7, 2025, more than seven months after the legally mandated deadline of December 1, 2024, followed by another delay in its official notification on August 18, 2025.
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Rana emphasized that these repeated delays and technical issues have shortened the statutory filing period by 49 days, undermining taxpayers’ rights and legal compliance timelines. He argued that the extension to November 30, 2025, is not merely a request but a necessity to uphold fairness and transparency in the tax system. The LTBA warned that unresolved errors could push taxpayers toward litigation, further delaying revenue collection and complicating administrative procedures for the FBR.
By urging government intervention, the LTBA hopes to ensure that all taxpayers are given a fair and functional environment to file their returns without facing unjust penalties. The association stressed that extending the deadline would restore public confidence, reduce administrative burden, and encourage voluntary compliance—an outcome beneficial for both taxpayers and the national exchequer.