The Federal Board of Revenue (FBR) has launched the new income tax return for Tax Year 2026, but the system has faced hundreds of technical bugs, creating difficulties for taxpayers and tax advisers ahead of the September 30 filing deadline, sources told ProPakistani.
Sources said the return was deployed by Pakistan Revenue Automation Limited (PRAL) after the FBR provided Change Request Forms (CRFs) containing amendments arising from tax measures approved by Parliament in 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.
Under the existing arrangement, PRAL serves as the FBR’s technical execution arm and implements changes to the IRIS system based on approved requirements and CRFs issued by the FBR’s domain teams.
The development is particularly significant as the FBR has attached more than two dozen Inland Revenue Service (IRS) officers to PRAL, including a Chief Revenue Domain Officer and other Domain Officers, to improve coordination between the tax authority and its technology team and ensure that operational and legal requirements are incorporated into the software.
The Domain Officers are responsible for participating in software development and implementation throughout the Software Development Life Cycle (SDLC), as well as overseeing Business Requirement Specifications (BRS) and Change Request Forms (CRFs). They have also been given direct access to PRAL data to support audits, compliance and revenue optimisation.
500 Bugs Reported in Initial Version
Sources said the initial version of the delayed income tax return contained around 500 bugs and other technical issues after its launch.
The PRAL team subsequently began addressing the reported problems, with the number of outstanding issues falling significantly. Sources said most of the technical issues had been resolved after the migration from the old equipment to new infrastructure was completed.
According to FBR data, around 808,719 income tax returns had been filed as of August 13, 2026, compared with approximately 747,050 returns during the same period last year.
Sources said the tax collected through returns filed so far remains lower than the amount recorded during the corresponding period last year.
The problems have also raised questions over the FBR’s quality assurance and testing 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 launched while a substantial number of technical issues were still outstanding.
Although PRAL has since worked to resolve the reported problems, sources said the initial bug count raises questions about whether sufficient testing was completed before the system was opened for public filing.
FBR Defends New Return Form
Responding to queries, an FBR spokesperson said the Tax Year 2026 income tax return represents a significant advancement in the department’s digital transformation.
The spokesperson said the new return has been redesigned in line with the FBR’s digital transformation agenda, as envisioned by the Prime Minister, with the system aimed at capturing more accurate data, linking assets with income and facilitating taxpayers through advanced data integration.
The FBR rejected the impression that the system is fundamentally flawed, saying it is operating as designed to strengthen tax compliance.
The spokesperson said the new return has moved from a static form to a highly dynamic interface that guides taxpayers through relevant tax requirements.
The system also adjusts according to the taxpayer’s sources of income. For instance, salaried individuals will only see sections relevant to their income, reducing unnecessary information and simplifying the filing process.
The FBR also acknowledged queries regarding the newly introduced immovable property feature.
According to the spokesperson, the feature was deliberately introduced to improve data accuracy by establishing linkages between property ownership, rental income and agricultural income.
The department also said the new return simplifies the calculation of Capital Gains Tax (CGT), which is otherwise considered a complex area of taxation.
Under the new system, the tax is calculated automatically, with taxpayers required to enter the sale value and sale date.
FBR said its joint team with PRAL remains committed to resolving taxpayer issues and ensuring a smooth, transparent and modernised tax filing process.
With the September 30 deadline approaching, taxpayers and tax advisers are expected to continue using the new system as PRAL works to address the remaining technical issues.
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