FBR AI checks make tax return accuracy important this year

Islamabad – The deadline for filing tax returns this year has been set for September 30. However, taxpayers need to exercise greater caution than usual when filing their 2026 tax returns.

According to reliable sources, the Federal Board of Revenue (FBR) is moving toward making the tax-return scrutiny process more automated and AI-based. Under the new system, information provided by taxpayers may be compared with the tax returns of other individuals as well as records available from banks and various institutions.

According to sources, even a minor discrepancy in the information may result in the taxpayer receiving a notice seeking an explanation. For example, if a person declares a gift received from their father, brother, wife or another individual in their tax return but the person who gave the gift does not report the amount or gift in their own return, a discrepancy may appear between the two returns.

Similarly, if a taxpayer declares a loan received from someone among their assets or liabilities but the lender does not report the same amount as a receivable loan in their wealth statement, this discrepancy may also be detected by the FBR’s automated system.

In such a situation, the FBR may ask the taxpayer to provide an explanation and may require relevant evidence or documents to verify the transaction.

According to tax experts, before filing a tax return, taxpayers should cross-check their income, assets, liabilities, gifts, loans, bank account balances and other financial information.

Taxpayers should also keep proper records and supporting documents for all important information declared in their returns so that they can explain the relevant transactions if required.

Experts say that simply filing a tax return before the deadline is not enough. It is equally important to cross-check all the information beforehand and ensure its accuracy and consistency.