FBR to not extend deadline for income tax filers

• Written individual requests seeking extension in deadline to be entertained.
• Tax filing dates for companies will not be extended after September 30.
• FBR has extended working hours of its offices to facilitate income tax filers.

The Federal Board of Revenue (FBR) on Wednesday clarified it would not extend the deadline for people seeking to file their income tax returns.

The tax collection body, in a notification, said relevant commissioners could extend the date for certain individuals who submit a written application seeking an extension in the deadline under the provisions of section 119 (1) of the Income Tax Ordinance.

People facing hardships can be given an extension of 15 days, the tax collection body said, adding that the filing date for companies would not be extended.

Businessmen have urged the tax collection body to extend the date to file by two months to facilitate the business community, according to a report published in The News today.

Federation of Pakistan Chambers of Commerce and Industry (FPCCI) President Mian Nasser Hyatt Maggo demanded that FBR extend the deadline, saying it would support the government’s drive to broaden the tax base.

Referring to the September 30 deadline, he said the recommendation was based on the feedback received from businesses across Pakistan.

Working hours extended

A day earlier, the FBR had announced an extension in the working hours of its offices to facilitate income tax filers.

According to a statement by the tax authority, the relevant offices will remain open till 12 midnight on September 29 (Wednesday) and September 30 (Thursday).

The FBR online portal for those wishing to file their returns online has been encountering errors in its server, causing immense difficulties to people.

The Pakistan Tax Bar Association had also demanded an extension in the deadline to file income tax returns.

Last week, responding to news regarding a supposed extension in the date, FBR spokesperson Asad Tahir categorically denied this was the case, stating that no proposal in this regard has been considered at the FBR headquarters.

In an informal conversation with journalists, Tahir said: "So far, 0.8 million people have filed their returns."

He added that no strict action will be taken against traders but said that after 15 days, show-cause notices will be issued to traders who do not have Point of Sales (PoS) systems installed.

"Failure to install PoS will result in a fine worth Rs500,000 after 15 days," the spokesman said, adding that if traders apply PoS in 15 days, the fine will be waived off.

Tahir added that failure to install PoS after a month will result in a fine worth Rs3 million. "Closing down businesses will be the last resort," he added.

Earlier this month, the FBR advised all taxpayers required to file tax returns by September 30, 2021, to fulfil their legal obligation without waiting for the last date to avoid system delays which occur when a large number of taxpayers log in for submission of returns near the deadline.