The final S.R.O. 1904(I)/2026 inserts Rule 33U in the Income Tax Rules, 2002, prescribing eligibility, FBR activation evidence and exclusions for claims under section 64D.
The exact change
On 26 October 2026 the FBR notified Rule 33U in Chapter VIIA of the Income Tax Rules, 2002, following the draft notified as S.R.O. 1692(I)/2026 on 6 October. The final rule sets conditions for obtaining a tax credit under section 64D of the Income Tax Ordinance, 2001.
The person must be required under the Income Tax Ordinance, Sales Tax Act or Federal Excise Act to integrate with the Board's computerised system for real-time production monitoring or sales or receipts reporting. The resource must be installed, integrated and configured during the relevant tax year and used directly and exclusively for the required integration.
Investment base and excluded expenses
Rule 33U(2) includes the purchase price and one-time costs directly attributable to installation, configuration, interface development, integration, testing and implementation necessary to bring the resource into operation.
Rule 33U(3) removes discounts, rebates, refunds, grants and subsidies from the base. Recoverable taxes, routine and annual maintenance, post-commissioning support, recurring services, internet, telecom, utilities, salaries, training, consumables, financing and general-purpose systems not dedicated to integration are excluded. A separately identifiable dedicated component of a broader system may be considered.
Evidence, timing and claims
An integration, activation, commissioning or configuration record generated or confirmed by FBR's system must identify the taxpayer, resource and activation date. Supporting records include invoices, contracts, licences, payment evidence and the expenditure calculation.
The claim belongs in the tax return for the year of successful installation and configuration. The same expenditure cannot be claimed twice. Rule 33U requires detailed resource and supplier information in the return or an IRIS schedule, with verification available under section 174.
What affected businesses should consider
Taxpayers should obtain FBR-confirmed activation records, itemise one-time integration costs separately from annual support, and reconcile eligible expenditure to the correct income-tax return.
Legal status
S.R.O. 1904(I)/2026. Report reviewed on 28 October 2026. Final notified rule.
The governing instrument and any subsequent amendment or clarification should be checked before taking action.
Official regulatory publication.