HBA & Co Law Associates

*📢 FBR Revises Income Tax Return Forms for Tax Year 2026*

The Federal Board of Revenue (FBR) has amended the Income Tax Return Forms for Tax Year 2026 through SRO 495(I)/2026, introducing further amendments to the Income Tax Rules, 2002 under Section 237 of the Income Tax Ordinance, 2001.

🔹 Key Updates:

✅ New provisions have been incorporated into the Second Schedule of the Income Tax Rules, 2002.

The amendments include:

▪️ Part-II-ZE
▪️ Part-II-ZF
▪️ Part-II-ZG
▪️ Part-II-ZH

📌 Important for Taxpayers:

These changes have been introduced after taxpayers had already started filing their Tax Year 2026 Income Tax Returns under previously notified forms.

Taxpayers and tax professionals should:

✔ Review the revised return forms
✔ Check whether previously prepared information requires updates
✔ Ensure accurate compliance before submitting the return

⚠️ Why This Matters:

Changes in return requirements during the filing period may create confusion for taxpayers. Proper review and professional guidance can help avoid filing errors and future compliance issues.

⚖️ HBA & Co. Law Associates provides expert assistance in:

✔ Income Tax Return Filing
✔ Tax Advisory
✔ Tax Compliance
✔ Tax Litigation

Ensure your Tax Year 2026 return is prepared accurately and in accordance with the latest requirements.

HBA & Co. Law Associates
Your 360° Legal Partner

📞 +92 308 5109153
🌐 www.hbalawassociates.com.pk
📍 Office #701 & #702, 7th Floor, Trade Tower, Abdullah Haroon Road, Near Governor House, Karachi.

*📢 FBR Introduces CRM-Based Selection Requirement for Tax Assessments*

The Federal Board of Revenue (FBR) has issued important instructions regarding tax assessment and amendment proceedings through Income Tax Circular No. 01 of 2026-27 dated 31 August 2026.

🔹 Effective from 1 September 2026:
Before initiating any new assessment or amendment proceedings, the case must be selected and assigned through the Compliance Risk Management (CRM) System.

This requirement applies to the following proceedings:

✅ Section 121
✅ Section 122
✅ Section 122A
✅ Section 122C
✅ Section 177 proceedings

⚠️ Important Note:
Any new proceedings initiated without CRM-based selection may be considered unauthorized, and their legal validity may be affected under the applicable law.

📌 Key Message for Taxpayers & Businesses:
With the introduction of this requirement, proper documentation, tax compliance, and an effective legal response strategy have become more important than ever. If you receive an audit notice, assessment notice, or face any tax proceedings, timely professional legal guidance is essential.

⚖️ HBA & Co. Law Associates
Your 360° Legal Partner

We provide:
✔ Tax Litigation
✔ Income Tax Advisory
✔ Sales Tax Advisory
✔ Corporate Legal Solutions

📞 Contact: +92 308 5109153
📍 Office #701 & #702, 7th Floor, Trade Tower, Abdullah Haroon Road, Near Governor House, Karachi.
🌐 www.hbalawassociates.com.pk

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📢 IRIS 3.0 — A Major Transformation in Pakistan’s Tax System

IRIS 3.0 is not just a software upgrade; it is being considered an important step towards digital tax administration in Pakistan.

The new system aims to make tax filing more automated, integrated, and data-driven, with potential features including:

🔹 Pre-filled taxpayer information
🔹 Integration of data sources from multiple institutions
🔹 Enhanced authentication & security measures
🔹 Automated compliance monitoring
🔹 AI and machine learning-based analysis

📌 Key Implications for Businesses & Taxpayers:

In the future, simply filing an accurate tax return may not be enough. It will become increasingly important that:

✅ Books of accounts
✅ Bank transactions
✅ Withholding tax data
✅ FBR records

are properly reconciled and aligned.

Going forward, the role of tax professionals will extend beyond return preparation. Data analysis, reconciliation, compliance planning, and discrepancy management will become increasingly important areas of focus.

⚖️ HBA & Co. Law Associates’ Perspective:
With the evolving digital tax landscape, businesses must maintain organized, updated, and transparent financial records to minimize potential tax risks and avoid unnecessary disputes in the future.

We provide:

✔ Income Tax Advisory
✔ Tax Compliance Solutions
✔ Tax Litigation
✔ Corporate Legal Advisory

📞 Contact: +92 308 5109153
📍 Office #701 & #702, 7th Floor, Trade Tower, Abdullah Haroon Road, Near Governor House, Karachi.
🌐 www.hbalawassociates.com.pk

🚨 FBR Enforcement Action | Illegal Cigarette Manufacturing Facility Sealed in Karachi

Federal Board of Revenue (FBR) has taken a major enforcement action through Regional Tax Office-II Karachi against an illegal cigarette manufacturing facility located in Malir, Karachi.

According to FBR, the intelligence-based operation resulted in:

🔹 Seizure of machinery worth approximately Rs. 200 Million including cigarette-making, packing, token, filter machines and generators.

🔹 Confiscation of 700 kg raw to***co and finished stock.

🔹 The facility had an estimated production capacity of 700,000 cigarette sticks per day.

🔹 Estimated annual revenue loss due to illegal operations was around Rs. 1.2 Billion.

⚖️ Legal Action: A First Information Report (FIR) has been registered before the Special Judge (Customs & Taxation), Karachi, and criminal investigation proceedings are underway.

📌 Business & Industry Advisory: Manufacturers, distributors and traders must ensure:

✅ Proper registration under applicable tax laws
✅ Valid documentation of goods
✅ Compliance with sales tax and excise requirements
✅ Maintenance of complete business records

Non-compliance may result in seizure of goods, penalties and legal proceedings.

For assistance regarding Sales Tax Compliance, FBR Proceedings, Tax Litigation & Corporate Advisory, contact:

HBA & Co. Law Associates
Your 360° Legal Partner

📞 +92 308 5109153
🌐 www.hbalawassociates.com.pk
📍 Office #701 & #702, 7th Floor, Trade Tower, Abdullah Haroon Road, Near Governor House, Karachi.

SalesTaxPakistan TaxLawyerPakistan KarachiBusiness CorporateLawPakistan FBREnforcement BusinessCompliance TaxLitigation PakistanTax LegalUpdates CorporateAdvisory KarachiLawyers TaxConsultants

*🚨 FBR Enforcement Action | Illegal Cigarette Manufacturing Facility Sealed in Karachi*

Federal Board of Revenue (FBR) has taken a major enforcement action through Regional Tax Office-II Karachi against an illegal cigarette manufacturing facility located in Malir, Karachi.

According to FBR, the intelligence-based operation resulted in:

🔹 Seizure of machinery worth approximately Rs. 200 Million including cigarette-making, packing, token, filter machines and generators.

🔹 Confiscation of 700 kg raw to***co and finished stock.

🔹 The facility had an estimated production capacity of 700,000 cigarette sticks per day.

🔹 Estimated annual revenue loss due to illegal operations was around Rs. 1.2 Billion.

⚖️ Legal Action: A First Information Report (FIR) has been registered before the Special Judge (Customs & Taxation), Karachi, and criminal investigation proceedings are underway.

📌 Business & Industry Advisory: Manufacturers, distributors and traders must ensure:

✅ Proper registration under applicable tax laws
✅ Valid documentation of goods
✅ Compliance with sales tax and excise requirements
✅ Maintenance of complete business records

Non-compliance may result in seizure of goods, penalties and legal proceedings.

For assistance regarding Sales Tax Compliance, FBR Proceedings, Tax Litigation & Corporate Advisory, contact:

HBA & Co. Law Associates
Your 360° Legal Partner

📞 +92 308 5109153
🌐 www.hbalawassociates.com.pk
📍 Office #701 & #702, 7th Floor, Trade Tower, Abdullah Haroon Road, Near Governor House, Karachi.

📢 NADRA–FBR Introduces Online Biometric Verification Facility for Taxpayers

NADRA has confirmed that online biometric verification through the PakID mobile application is expected to become operational in the first week of September 2026.

This digital facility will allow:

✅ Individual taxpayers
✅ Sole proprietors
✅ Overseas Pakistanis

to complete biometric verification remotely without visiting a physical center.

🤝 NADRA is also working with FBR to recognize PakID biometric verification as an alternative verification mode alongside e-Sahulat.

Key Benefits:

🔹 Greater convenience for taxpayers
🔹 Digital and secure verification process
🔹 Easier compliance for overseas Pakistanis
🔹 Improved ease of doing business

📌 Taxpayer Advisory: Businesses and individuals should stay updated with digital compliance requirements to ensure smooth tax registration and filing processes.

For professional assistance regarding Income Tax, Sales Tax, Tax Registration, FBR Compliance & Corporate Advisory, contact:

HBA & Co. Law Associates
Your 360° Legal Partner

📞 +92 308 5109153
🌐 www.hbalawassociates.com.pk
📍 Office #701 & #702, 7th Floor, Trade Tower, Abdullah Haroon Road, Near Governor House, Karachi.

📢 NADRA–FBR Introduces Online Biometric Verification Facility for Taxpayers

NADRA has confirmed that online biometric verification through the PakID mobile application is expected to become operational in the first week of September 2026.

This digital facility will allow:

✅ Individual taxpayers
✅ Sole proprietors
✅ Overseas Pakistanis

to complete biometric verification remotely without visiting a physical center.

🤝 NADRA is also working with FBR to recognize PakID biometric verification as an alternative verification mode alongside e-Sahulat.

Key Benefits:

🔹 Greater convenience for taxpayers
🔹 Digital and secure verification process
🔹 Easier compliance for overseas Pakistanis
🔹 Improved ease of doing business

📌 Taxpayer Advisory: Businesses and individuals should stay updated with digital compliance requirements to ensure smooth tax registration and filing processes.

For professional assistance regarding Income Tax, Sales Tax, Tax Registration, FBR Compliance & Corporate Advisory, contact:

HBA & Co. Law Associates
Your 360° Legal Partner

📞 +92 308 5109153
🌐 www.hbalawassociates.com.pk
📍 Office #701 & #702, 7th Floor, Trade Tower, Abdullah Haroon Road, Near Governor House, Karachi.

*🚨 FBR Enforcement Action: Vehicles & Goods Seized Over Sales Tax Violations*

The Regional Tax Office (RTO) Hyderabad has taken enforcement action against multiple violations related to Sales Tax laws, Digital Invoicing requirements and documentation compliance.

According to FBR, several vehicles and goods were taken into custody due to non-compliance with applicable tax requirements.

Key Violations Reported:

🔹 Non-digital sales tax invoices
🔹 Non-active suppliers
🔹 Unregistered manufacturing units
🔹 Missing valid sales tax documentation
🔹 Non-compliance with Digital Invoicing requirements
🔹 Packaging compliance issues including MRP requirements

FBR stated that the seized vehicles and goods have been shifted for further verification and investigation, after which legal proceedings may be initiated under relevant provisions of law.

Important Message for Businesses:

Businesses involved in manufacturing, supply chain, transportation and retail sectors should ensure:

✅ Valid sales tax registration
✅ Active supplier status
✅ Digital invoicing compliance
✅ Proper documentation of goods movement
✅ Complete tax record maintenance

Non-compliance may result in business disruption, penalties and legal proceedings.

⚖️ HBA & Co. Law Associates provides professional assistance in:

✔ Sales Tax Advisory
✔ FBR Compliance
✔ Tax Litigation
✔ Digital Invoicing Matters
✔ Corporate Tax Advisory

📞 +92 308 5109153
🌐 hbalawassociates.com.pk
📍 Office #701 & #702, 7th Floor, Trade Tower, Abdullah Haroon Road, Near Governor House, Karachi

HBA & Co. Law Associates
Your 360° Legal Partner
Expertise. Integrity. Results.

*📢 FBR Clarifies Active Taxpayer Status Requirements for Tax Year 2027*

FBR has highlighted important compliance requirements for maintaining Active Taxpayer Status (ATL) under the Sales Tax regime.

A registered person may lose active status if:

🔹 Sales Tax registration is blocked or suspended under Section 21.
🔹 Sales Tax Return under Section 26 is not filed for two consecutive tax periods.
🔹 Income Tax Return under Section 114 or statement under Section 115 is not submitted within the due date.
🔹 Withholding Tax Statements under Section 165 are not filed within the prescribed time.

⚠️ Important for Businesses: Active Taxpayer Status is not linked with only one tax obligation. Businesses must ensure proper compliance with:

✅ Sales Tax Returns
✅ Income Tax Returns
✅ Withholding Tax Statements
✅ Registration requirements

Loss of active status may create difficulties in business transactions, tax compliance and regulatory matters.

📌 Stay compliant. Avoid unnecessary tax complications.

For professional assistance regarding Tax Compliance, Income Tax, Sales Tax Advisory, Appeals & Tax Litigation, contact:

HBA & Co. Law Associates
Your 360° Legal Partner

📞 +92 308 5109153
🌐 www.hbalawassociates.com.pk
📍 Office #701 & #702, 7th Floor, Trade Tower, Abdullah Haroon Road, Near Governor House, Karachi.