The Federal Board of Revenue (FBR) has amended the income tax return form for Tax Year 2026 through S.R.O. 1495(I)/2026, issued on 2 September 2026. The notification adds four new parts: Part-II-ZE, Part-II-ZF, Part-II-ZG and Part-II-ZH: to the Second Schedule of the Income Tax Rules, 2002, after the existing Part-II-ZD.

The statutory deadline for filing income tax returns for Tax Year 2026 is 30 September 2026, giving taxpayers 26 days from the date of the notification to comply with the amended form.

What the SRO changes

The SRO, issued under sub-section (1) of section 237 of the Income Tax Ordinance, 2001, follows prior publication via S.R.O. 835(I)/2026 dated May 2026, as required by section 237(3) of the Ordinance. The new parts are inserted into the Second Schedule of the Income Tax Rules, 2002 and relate to the Electronic Return for Individuals for Tax Year 2026, covering income from July 1, 2025 to June 30, 2026.

The amended form includes a Summary of Economic Transactions section and requires details on assets, expenditures, and other financial information. The PDF document published by the FBR shows the form structure includes fields for salary, property income, business income, capital gains, and other heads of income.

Tax experts criticise timing

Tax experts quoted by Business Recorder described the issuance of a new SRO introducing changes to the income tax return at this stage as "entirely confusing and unjustified," particularly when the statutory deadline for filing is 30 September 2026.

One expert said the last-minute amendments will create "serious legal and technical difficulties for taxpayers and tax practitioners" who are already preparing their returns under the previously notified form. The expert urged the FBR to "immediately clarify these changes; otherwise, the submission of returns within the statutory timeframe may not be possible."

Legal experts quoted by ProPakistani also questioned the notification's timing, warning that introducing changes to the return at this stage "could create legal and technical difficulties for taxpayers and tax practitioners who are already preparing their returns."

Practical steps for taxpayers

  • Review the amended form. Taxpayers should download the latest return form from the IRIS portal (https://iris.fbr.gov.pk) and compare it with the version previously available to identify what has changed.
  • Check for new data fields. The four new parts added to the Second Schedule may require information not requested in the earlier version of the return form.
  • Consult a tax practitioner. Given the technical nature of the changes, professional advice may be needed to determine whether information already prepared under the earlier form remains sufficient.
  • File before 30 September 2026. The statutory deadline has not been extended. Taxpayers who have already submitted returns may need to assess whether a revised return is necessary.

What remains unclear

The FBR has not issued a separate explanatory circular detailing what each of the four new parts requires. The SRO text, as published in PDF form, uses a mix of English and Urdu and contains numerous typographical anomalies that make it difficult to read the precise wording of each new part. Tax experts have called on the FBR to clarify the scope and implementation of the changes. Whether the FBR will extend the filing deadline in response to the criticism has not been specified.