The Pakistan Business Council (PBC) has identified a critical error in the Federal Board of Revenue’s (FBR) IRIS portal affecting the calculation of tax credits in 2025 income tax returns.
In a letter addressed to FBR Chairman Rashid Mahmood Langrial, the PBC explained that the system is miscomputing tax credits under Sections 61 and 63 of the Income Tax Ordinance, 2001, which cover charitable donations and contributions to approved pension funds. The council has urged FBR and its IT partner, PRAL, to address the issue urgently to avoid confusion and filing delays.
According to PBC, the error stems from the IRIS system excluding the surcharge introduced under Section 4AB by the Finance Act 2024—a 10% levy on income tax for individuals and AOPs earning above Rs. 10 million. Since this surcharge forms part of the total tax payable, omitting it results in understated tax credit calculations.
The PBC emphasized that this oversight contradicts the legal framework and disrupts accurate tax return processing. It has called on the FBR to direct PRAL to correct the computation logic in the IRIS portal to ensure compliance and restore taxpayer confidence in the digital filing system.
