FBR sticks to Sept 30 tax return deadline

The Federal Board of Revenue has announced that the deadline for filing income tax returns will not be extended beyond September 30.

In a statement issued on Monday, the FBR urged taxpayers to file their returns “accurately and honestly” by the due date, warning that those who fail to do so will face penalties and be categorised as late filers.

“Taxpayers are also cautioned that failure to file returns by the due date will result in late-filer status and imposition of penalties under the law,” the statement said.

The authority clarified that no general extension would be granted. However, in cases of extreme hardship, an individual extension of 15 days could be approved under specific conditions.

The FBR dismissed reports suggesting that the deadline might be extended, calling them “baseless.” It also rejected claims that its online IRIS filing system was running slowly. “The portal is fully functional and operating smoothly,” the statement said.

HCSTSI urged govt to extend deadline

Last week, Hyderabad Chamber of Small Traders and Small Industry urged the federal government to extend the income tax filing deadline by 48 days, citing changes in the IRIS portal and flood situation in Punjab, K-P and Sindh.

In a statement the chamber's president Muhammad Saleem Memon argued that the desired relief is necessary to facilitate taxpayers and to prevent them from being subjected to avoidable penalties and hardships.

Read More: FBR cracks down nationwide on tax-evading jewellers

This year, he said the FBR has introduced several new changes, like automated data uploading, interactive forms, and a new verification mechanism in the IRIS tax return filing system.

However, he claimed, the system has not become completely functional. "Taxpayers and accountants are experiencing login problems, repeated error messages and unclear issues such as 'receipt value' errors," he added.

Memon pointed out that even the salaried individuals have complained of confronting difficulties on the portal. "Strict adherence to the current deadline, under these circumstances, would unjustly penalise thousands of people," the chamber's president cautioned.

While referring to the rain and flood hit areas in the country, he said the suspension of electricity, internet, and banking services have deprived both traders and salaried individuals of timely access to their financial records and accounts.

He added that it will be extremely uphill or even impossible for such filer to complete the tax filing within the given timeframe. The HCSTSI urged the government to immediately announce an extension.

Faisal Vawda warns tax evaders

Earlier, Senator Faisal Vawda said the FBR is preparing a strict crackdown on tax evasion, warning individuals and companies that discrepancies between declared income and visible luxury lifestyles will not go unnoticed.

He said if taxpayers show at least a 15 per cent increase in tax paid in their latest returns compared to last year, their past returns may be overlooked.

However, failure to meet this condition could lead to the opening of previous years' records. Even those declaring 30 per cent more tax may not be exempt from scrutiny then, he cautioned.

Vawda said lists have been compiled comparing taxpayers' declared income with their luxury lifestyles as showcased on social media platforms. Authorities have advised such individuals to prepare for tax payments accordingly.