KTBA urges FBR to lift IRIS restriction on opening wealth balance for tax year 2026
MG News | October 24, 2026 at 07:10 PM GMT+05:00
October 24, 2026 (MLN): The Karachi Tax Bar Association (KTBA) has asked the Federal Board of Revenue (FBR) to lift a restriction in its IRIS
filing system that stops individuals who return to Pakistan after a period as
non-residents from entering the correct opening wealth balance for tax year
2026.
In a letter to FBR Member Inland
Revenue Operations Zubair Bilal, the association said IRIS automatically brings
forward the wealth balance from the last wealth statement on record and gives
taxpayers no option to edit it, said a press release issued.
The association said this causes
difficulty for individuals who were non-residents for the years in between and
so were not required to file wealth statements, but who later returned and
became residents again.
It noted that under Section 116(2) of
the Income Tax Ordinance, 2001, every resident individual who files an income
tax return must also submit a wealth statement and a wealth reconciliation
statement for that year.
The association explained the problem
with an example of a taxpayer who was a Pakistani resident up to tax year 2023,
which ended on June 30, 2023, and then became a non-resident for tax years 2024
and 2025.
During those two years, the person
declared only Pakistan-source income and filed no wealth statements.
After coming back and regaining
resident status in tax year 2026, the individual became liable to file wealth
and reconciliation statements. IRIS, however, kept showing the wealth balance
as of June 30, 2023 as the opening figure, leaving the taxpayer unable to enter
the appropriate amount for tax year 2026.
The association said this makes it
hard to reconcile the change in wealth for the relevant year without accounting
for the intervening years of non-residence.
It urged the FBR to change the
validation mechanism in IRIS 2.0 so returning residents can enter the right
opening wealth balance and complete their filings, without preparing a
reconciliation that covers years in which no wealth statement was due.
The association also argued that
taxpayers should be allowed to declare opening wealth balances based on
relevant information and records, subject to applicable tax laws.
It said the filing system should help
taxpayers comply with Section 116(2) without widening the scope of the
statutory obligation, and called for an urgent resolution so affected
individuals can submit their tax year 2026 wealth statements and reconciliations
correctly.
Copyright Mettis Link News
Related News
| Name | Price/Vol | %Chg/NChg |
|---|---|---|
| KSE100 | 162,374.88 110.96M | -0.95% -1549.44 |
| ALLSHR | 98,620.11 386.58M | -0.91% -906.77 |
| KSE30 | 47,823.16 51.47M | -1.02% -490.65 |
| KMI30 | 232,733.99 57.93M | -1.23% -2903.19 |
| KMIALLSHR | 63,955.68 197.75M | -1.12% -727.41 |
| BKTi | 44,724.17 14.61M | -1.01% -457.04 |
| OGTi | 33,033.72 5.00M | -1.08% -361.88 |
| Symbol | Bid/Ask | High/Low |
|---|
| Name | Last | High/Low | Chg/%Chg |
|---|---|---|---|
| BITCOIN FUTURES | 80,785.00 | 81,450.00 80,440.00 | -420.00 -0.52% |
| BRENT CRUDE | 117.38 | 117.45 112.74 | 4.21 3.72% |
| RICHARDS BAY COAL MONTHLY | 128.50 | 0.00 0.00 | -1.10 -0.85% |
| ROTTERDAM COAL MONTHLY | 147.10 | 0.00 0.00 | 1.10 0.75% |
| USD RBD PALM OLEIN | 1,182.50 | 1,182.50 1,182.50 | 0.00 0.00% |
| CRUDE OIL - WTI | 103.44 | 103.92 98.84 | 3.97 3.99% |
| SUGAR #11 WORLD | 20.26 | 20.51 20.02 | 0.13 0.65% |
Chart of the Day
Latest News
Top 5 things to watch in this week
Pakistan Stock Movers
| Name | Last | Chg/%Chg |
|---|
| Name | Last | Chg/%Chg |
|---|
Repatriation of Profit and Dividend