[Update: Oct 14th, 2021]: With every year FBR extending the return filing deadline, people have adopted a lax attitude regarding it. Unlike every year, the government does not seem to be giving much of a leeway. The last deadline issued was 30th September. The authorities refused to extend the deadline further except for those few who submitted the request for extension. The deadline for them is now October 15th.
Punishments for not following the deadline
Now, the FBR spokesperson has taken to Twitter announcing that there will be no further extension past October 15th. People have to file by then or face punishment. From case to case, the punishment will vary but it is being hinted that the punishment may entail a PKR 1000 fine daily or a 2-year jail.
All taxpayers, both old and new, are requested to make the most of last two days available for filing of Income Tax Returns. No extension beyond the extended deadline-October 15, 2021. @FinMinistryPak pic.twitter.com/s9uKcvE81h
— FBR (@FBRSpokesperson) October 13, 2021
Hence, filers should make the most of these last two days. The online portal works 24/7 and as the organization claims, this time it is working efficiently.
[September 30th, 2021]: Every year, people have to file their income tax returns. Filing is something you should do for the betterment of your own country as a loyal citizen. The Federal Board of Revenue (FBR) has also tried to accommodate all Pakistani citizens in facilitating the filing process. In fact, you can now electronically file taxes without the help of consultants as well.
Yet, due to numerous reasons, people fail to file it on time. Almost every year, FBR extends the deadline. The date that should be 31st July, with continuous extensions, goes up to even December. Because of these extensions, the citizens have begun to adopt a lax attitude as well. With the deadline approaching, the filers always delay hoping for a deadline, and they get it. Not this time though!
The Federal Board of Revenue (FBR) Wednesday directed Chief Commissioners Inland Revenue to generously grant extensions in filing of income tax returns in all cases of hardship of any nature.https://t.co/yPTlO7Gnd3#FBR #taxreturn #tax #incometax pic.twitter.com/qCGOVGT04H
— Business Recorder (@brecordernews) September 30, 2021
FBR returns extension and who can apply
The institution has taken steps to tighten the hold on the process. Just yesterday, they announced that there will not be an extension. However, today, they have said that they might just allow the extension but only for those who ask for it. In the notification, it was mentioned that the individuals who seek the extension will have to submit an application, unlike previous times when the extension was automatically applied to everyone. This update is under the provisions of section 119 (1) of the Income Tax Ordinance.
It was also said that there will be no extension for companies but individuals can avail the extension of 15 days.
Moreover, the timing for income tax offices was also extended. The relevant offices are now to stay open until 12 am on Wednesday and Thursday.
FBR issues guidelines for requesting extension in income tax return deadline pic.twitter.com/XzXWOiWjTJ
— Samson Masih (@SamsonM34475947) September 29, 2021
As for actions against traders, FBR spokesperson Asad Tahir said that show-cause notice will be issued after 15 days to those who have not installed PoS yet. He said that the fine charged will be PKR 500,000. The fine will increase to PKR 3 million if the traders do not install PoS even in the entire month. The last resort will be closing the business.
FBR return guidelines
Let’s have a look at the guidelines for the extension of the income tax return deadline. In a statement, the organization has mentioned that individuals can submit the application in two ways. They can either submit it online or at the help desks at the Regional Tax Offices (RTOs). They will have to provide their NTN and NIC numbers to submit the application.
It is better to file your return today. But should you not be able to, we suggest that you timely submit the extension. But given that the online portal is crashing, one can only wonder how the organization will accommodate the ones ready to submit even if on the last day.
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