The Karachi Tax Bar Association has raised concerns over the calculation of the “Difference of Minimum Tax” in the Tax Year 2026 return available on the FBR’s IRIS portal, particularly in cases involving tax deducted or collected under Section 153 of the Income Tax Ordinance, 2001. According to the KTBA, the system is generating additional liabilities without clearly disclosing the underlying formula or statutory basis.
The Tax Bar has emphasised that minimum-tax liability cannot necessarily be determined through a uniform automated calculation because its treatment may depend upon the taxpayer’s business activities, different income or receipt streams, applicable tax provisions, allowable expenses and deductions. It has therefore questioned whether an undisclosed system-generated computation should override the liability determined by taxpayers under the statutory self-assessment framework.
Another concern highlighted is possible duplication in the treatment of income subject to Section 153, where the same income may potentially be taken into account again while calculating normal tax. With the Tax Year 2026 filing deadline stated in the document as September 30, the KTBA has requested FBR to urgently review the formula and remove system restrictions that may prevent taxpayers from making adjustments otherwise available under the law.