The Federal Board of Revenue (FBR) has rolled out the Tax Year 2026 income tax return, but the new filing system initially contained around 500 bugs and technical issues, creating difficulties for taxpayers and tax advisers ahead of the September 30 deadline, sources told RBN.
Sources said Pakistan Revenue Automation Limited (PRAL) deployed the return after receiving Change Request Forms (CRFs) from the FBR incorporating changes resulting from tax measures approved in the federal budget.
CRFs are formal instructions used by the FBR to communicate required modifications to the IRIS system, including changes to tax declarations, calculations and other functions.
PRAL is responsible for the technical implementation of FBR-approved requirements in IRIS. The company carries out these changes on the basis of CRFs and other requirements prepared by the FBR’s relevant domain teams.
The FBR has also assigned 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.
These officers are involved in software development and implementation across the Software Development Life Cycle (SDLC) and supervise Business Requirement Specifications (BRS) and CRFs. They have also been provided direct access to PRAL data for audits, compliance and revenue optimisation.
Initial Version Reportedly Had Around 500 Bugs
Sources said the launch of the new return was delayed and its initial version contained approximately 500 bugs and other technical problems.
PRAL subsequently worked on the reported issues, significantly reducing the number of outstanding problems. Sources said the bulk of the technical difficulties were addressed after the migration from the old equipment to new infrastructure was completed.
FBR data showed that 808,719 income tax returns had been filed by August 13, 2026, compared with around 747,050 returns during the corresponding period last year.
Despite the higher number of filings, sources said the tax collected through returns submitted so far is below the amount recorded during the same period last year.
The technical problems have raised concerns about the FBR’s testing and quality assurance process for its digital tax systems.
Sources said the return should have undergone comprehensive testing and quality clearance before being opened to taxpayers. The reported launch with a significant number of unresolved issues has raised questions about the extent of testing conducted before deployment.
Although PRAL has since worked to fix the problems, sources said the initial volume of bugs has prompted concerns over the effectiveness of the pre-launch testing process.
FBR Says New Return Is Designed for Digital Tax Transformation
The FBR, however, defended the new system, describing the Tax Year 2026 return as a major advancement in the department’s digital transformation.
An FBR spokesperson said the return was redesigned to improve data accuracy, connect taxpayers’ assets with their income and use greater data integration to facilitate compliance.
The spokesperson rejected the suggestion that the system is fundamentally flawed, saying it is functioning according to its intended design to strengthen tax compliance.
The new return has also been changed from a static form into a dynamic interface that displays information according to a taxpayer’s income profile.
For example, salaried taxpayers will see only the sections relevant to their sources of income, reducing unnecessary fields and making the filing process more streamlined.
New Property Feature Draws Queries
The FBR also addressed concerns over the newly introduced immovable property feature.
The spokesperson said the feature was intentionally incorporated to improve data accuracy by linking property holdings with rental and agricultural income.
The department also said the new return simplifies Capital Gains Tax (CGT) calculations.
While CGT calculations can be complex, the new system automatically calculates the applicable tax after the taxpayer enters the sale value and sale date.
The FBR said its teams, in coordination with PRAL, are continuing to resolve taxpayer complaints and technical issues to ensure a smoother and more transparent filing process.
The September 30 deadline remains in place for filing income tax returns for Tax Year 2026.
