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Lahore Tax Bar Association Calls for Extension of Income Tax Return Filing Deadline

Strategic Insights

— 2 min read

The Lahore Tax Bar Association (LTBA) has written a formal letter to Prime Minister Shehbaz Sharif, requesting an extension of the income tax return filing deadline for the tax year 2025 to November 30. The association cites 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. The LTBA warns 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.

Key Takeaways:

  • The LTBA called on Prime Minister Shehbaz Sharif to extend the income tax return filing deadline for the tax year 2025 to November 30 due to persistent technical glitches in the IRIS portal.
  • The association cited 'serious system errors' that have paralyzed taxpayers' ability to comply with deadlines, causing frequent crashes, incorrect tax calculations, and incomplete submissions.
  • The LTBA identified several major technical and legal inconsistencies in the FBR system, including incorrect application of tax credits and the 10% super tax under Section 4AB.
  • The portal is miscalculating taxes under the minimum tax regime, resulting in inflated liabilities, and wrongly applying Section 151 instead of Section 7B for tax on profit on debt.
  • The FBR failed to publish the manual return form required under Rule 73(2DD) of the Income Tax Rules, 2002, making it impossible for individuals without reliable internet access to file returns manually.
  • The LTBA 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, which was followed by another delay in its official notification on August 18, 2025.
  • 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.

Statistics:

  • The income tax return filing deadline for the tax year 2025 was initially set for July 15, 2025.
  • The Federal Board of Revenue's (FBR) IRIS portal was plagued by technical glitches, causing frequent crashes, incorrect tax calculations, and incomplete submissions.
  • The LTBA 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.
  • The repeated delays and technical issues have shortened the statutory filing period by 49 days, undermining taxpayers' rights and legal compliance timelines.

Sources:

  • Lahore Tax Bar Association (LTBA) - Formal letter to Prime Minister Shehbaz Sharif.
  • Federal Board of Revenue (FBR) - IRIS portal.
  • Income Tax Ordinance, 2001 - Section 4AB, Section 92, and Rule 73(2DD).
  • Income Tax Rules, 2002 - Rule 73(2DD).

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