FBR makes CRM approval mandatory for new income tax assessments from September 1

The Federal Board of Revenue (FBR) has made selection through its Compliance Risk Management (CRM) System compulsory before any new income tax assessment begins from September 1, 2026, Profit by Pakistan Today reported. The step was set out in Income Tax Circular No. 1 of 2026, which instructs all Inland Revenue field offices to follow the digital process. Proceedings started without a case first being chosen through that system would be treated as unauthorised and could be voided by the competent authority.

According to the board, the goal is to make case choice more transparent, uniform and objective, alongside digitisation and automation of tax administration. Cases already underway on August 31, 2026 can be finished under the old framework. Fresh amendments, reassessments and show-cause notices issued in those cases after September 1 must also go through the CRM selection route.

Exemptions are allowed only in exceptional cases and need a written request to the Member (Inland Revenue Operations) with full justification and specific written approval. Technical faults or downtime must be reported to that Member within 24 hours. The circular supersedes conflicting earlier instructions, and the measure rests on Section 214 of the Income Tax Ordinance, 2001, which the board cites alongside related rules.