Karachi, February 20, 2025 – The Federal Board of Revenue (FBR) has failed to meet its deadline for issuing the finalized income tax return forms for the year 2025, sparking concerns about compliance and regulatory challenges for both taxpayers and tax professionals.
According to established regulations, the FBR was required to finalize and issue the income tax return forms by January 31, 2025. However, as of today, the forms remain unpublished, leaving taxpayers and experts questioning the delay. This failure to meet the deadline is creating confusion and uncertainty regarding the filing process, which could lead to potential complications for taxpayers trying to file their returns on time.
Tax professionals have expressed significant concerns about the delay. Zeeshan Merchant, the former president of the Karachi Tax Bar Association (KTBA), voiced his dissatisfaction, stating, “If the FBR itself does not comply with tax regulations, how can it expect taxpayers to adhere to filing deadlines?” He further emphasized that the KTBA had raised similar concerns about delays and regulatory lapses in previous years, yet the board continues to miss crucial deadlines, undermining confidence in the system.
The delay contradicts Rule 34A of the Income Tax Rules, 2002, which sets out clear timelines for the issuance of the return forms. According to these rules, the FBR is supposed to begin the process by reviewing legal amendments by August 31 of the financial year. The collaboration with the Pakistan Revenue Automation (PRAL) team should conclude by October 31, with a final User Acceptance Test (UAT) completed by November 15. The return forms are expected to be uploaded on the IRIS portal for public access by January 31.
However, with the FBR failing to meet this deadline, the delayed notification has raised alarms among tax practitioners. They warn that any last-minute changes to the forms could create confusion and complicate the filing process further. This uncertainty could result in difficulties for taxpayers who rely on clear guidelines to file their returns promptly, particularly in light of the looming deadlines.
The delayed issuance of the return forms also hampers tax practitioners’ ability to guide clients effectively. Given the lack of final documentation, many are left with incomplete information, making it difficult to ensure compliance with the latest regulations. This disruption could lead to delays in filing, mistakes in tax returns, and even penalties for taxpayers who may struggle to meet the statutory filing deadlines.
In addition to the administrative challenges, the failure to notify the return forms in time may have broader consequences for the overall tax collection process. Timely and accurate filing is critical for ensuring that the government meets its revenue targets and maintains transparency in its fiscal management. A delay in issuing these forms may lead to reduced compliance rates and an increased risk of non-compliance, ultimately hindering the effectiveness of the tax system.
In light of this situation, experts are urging the FBR to streamline its internal processes to ensure that such delays do not recur. They are also calling for a more efficient approach to incorporating necessary amendments to the return forms to prevent further disruptions. Timely action and adherence to established deadlines are essential for maintaining taxpayer confidence and ensuring smooth operations within Pakistan’s tax framework.
As the filing deadline approaches, the FBR must take immediate steps to resolve the issue, finalize the return forms, and make them available to the public without further delay. The clock is ticking, and any further delay could exacerbate the challenges faced by taxpayers and tax professionals alike.