ISLAMABAD: The Federal Board of Revenue (FBR) chairman has directed officials to develop a time-bound process for income tax refunds following concerns raised by the Karachi Tax Bar Association, according to a report published on October 17, 2026.
The discussions included delays in processing refund claims and pending tax return revisions related to Section 7E, which deals with deemed income from certain immovable property. The direction aims to establish a clearer timeframe for handling such cases.
However, the instruction does not confirm that refunds will be issued faster immediately. The FBR has not announced a specific processing deadline, the total value of pending refunds or the number of cases affected. Further details about the proposed procedure are also awaited.
The issue is relevant to taxpayers, property owners and tax advisers who have refund claims or return revisions awaiting decisions. A defined process could help provide greater clarity on case handling, depending on the timelines and procedures eventually introduced.
The development does not announce a new property-tax exemption or change the existing rules under Section 7E. It concerns the processing of tax matters rather than a confirmed change in tax policy.
Taxpayers with pending cases should keep their tax records and relevant correspondence up to date while monitoring official FBR announcements. The next important step will be the publication of the proposed procedure, including any deadlines or specific arrangements for outstanding Section 7E cases.
