Another date extension expected for filing returns tax year 2019

Another date extension expected for filing returns tax year 2019

ISLAMABAD: Tax managers and experts are expecting that the Federal Board of Revenue (FBR) likely to further extend the date for filing annual tax returns for tax year 2019.

Today i.e. December 16, 2019 is the last date for filing returns other than companies for tax year 2019. The FBR on November 29, 2019 granted 16 days extension for filing income tax returns.

The actual last day for filing income tax returns for tax year 2019 was September 30, 2019. On this date salaried persons, business individuals, Association Persons (AOPs) and corporate entities having special tax year are required to file income tax returns.

However, due to small number of return filing and delayed issuance of return forms the FBR extended the date from September 30 to October 31. And then it was further extended to November 30, 2019. Now it is December 16, 2019.

The received income tax returns are still below the expected numbers. As per Pakistan Tax Bar Association (PTBA) around 1.8 million tax returns were filed by December 13, 2019. The PTBA further pointed out that the number of return filers for tax year 2018 was increased to 2.71 million. Therefore, it was almost impossible for 0.9 million people to file their returns in remaining three days.

The difference of 0.9 million has been calculated on the basis of returns filed last tax year and filed for tax year 2019.

The actual number of persons required to file the income tax returns is very large. Under the Income Tax Ordinance, 2001, every person who obtains National Tax Number (NTN) is required to file annual return. According to estimates around 4.7 million NTN had been issued by the FBR.

Further, every taxable income or persons own certain properties or assets defined under the Ordinance are required to file their annual returns.

In order to facilitate the taxpayers in filing their returns the law accepts CNIC as NTN.

The tax experts and tax consultants/experts believed that the FBR further extend the date to December 31, 2019. Interestingly, this is also the last date for filing returns by corporate entities whose financial year ends on June 30.

The PTBA also urged the FBR to extend the last date up to December 31, 2019.

Some officials in the FBR said that in case the board not extends the date beyond December 16, 2019 then the board will grant general extension any time after January 01, 2020 when small traders will be give time to file their returns.