The Federal Board of Revenue (FBR) has introduced a new income tax return form for Tax Year 2026. However, taxpayers and tax advisers have reported several technical issues while using the new system, according to Business Recorder.
FBR officials said the new return form is part of the government’s efforts to modernise the tax system. Unlike the previous static form, the new system is more dynamic and shows taxpayers only the sections that apply to their individual tax situation.
For example, a salaried person will mainly see the sections related to salary income, instead of having to go through unnecessary parts of the tax return. The system is also designed to collect more accurate information and connect taxpayers’ assets with their sources of income.
The new return has also introduced changes to the immovable property section. According to FBR sources, this feature was added to improve the accuracy of information about property, rental income and agricultural income. The changes have led to questions from taxpayers and tax professionals.
Another important change involves Capital Gains Tax (CGT). Calculating CGT can normally be complicated, but the new system is designed to make it easier. Taxpayers only need to enter the property’s sale value and sale date, after which the system calculates the tax automatically.
To help taxpayers understand the new requirements, the FBR has prepared a detailed user manual and a video tutorial on property management. Both are available through the IRIS portal.
The FBR has defended the new system, saying that filing data shows the new return is becoming easier and more effective for taxpayers.
However, a tax expert has advised the FBR to make sure that the increasing use of Artificial Intelligence (AI) in tax administration does not reduce the role of tax consultants, lawyers and other qualified professionals. Technology, the expert said, should support professional advice and judgment rather than replace it.