Tax refunds under Section 7E

The Express Tribune reports that taxpayers seeking repayment of Section 7E tax must first correct their records, rather than expect the court ruling to create an automatic refund. On May 7, 2026, the Federal Constitutional Court struck down the provision as unconstitutional from its inception, and the FBR later instructed field offices not to reject return revisions connected with the judgment.

The required steps depend on how the tax was reported and paid: taxpayers may need to amend a return, a separate IRIS computation or both, then submit a refund claim under Section 170. Only tax actually paid can potentially be returned; unpaid assessed amounts are removed rather than refunded, and any excess can first be offset against other tax dues. The usual filing window is three years, so the article advises affected taxpayers to address limitation issues promptly.