Islamabad, October 15, 2025 – The Federal Board of Revenue (FBR) has announced another extension in the deadline for submission of the annual income tax return for the tax year 2025, allowing taxpayers additional time for filing until October 31, 2025.
The decision was formally communicated through Circular No. 5 of 2025-26, issued on Wednesday. This marks the second extension granted by the FBR, following the previous extension from September 30 to October 15.
According to the circular, the extension has been made under Section 214A of the Income Tax Ordinance, 2001. The FBR stated that the move was prompted by multiple appeals from trade bodies, chambers of commerce, and tax bar associations, which had highlighted widespread technical issues and compliance difficulties in the return filing process.
In its representation to FBR Chairman Rashid Mahmood Langrial, Karachi Tax Bar Association (KTBA) President Ali A. Rahim pointed out persistent glitches in the IRIS portal and inconsistencies in tax computation. KTBA noted that several problems remained unresolved since August, including errors in applying surcharge under Section 4AB, incorrect tax adjustments, and pending refund claims. Moreover, the association emphasized that the official return form was issued late, effectively cutting the statutory filing period by nearly 50 days.
KTBA urged the FBR to consider extending the deadline further to November 15, arguing that taxpayers faced genuine hardships due to portal malfunctions and delayed administrative actions. “A short extension until mid-November would ensure fair compliance and protect taxpayers from unnecessary penalties,” the KTBA stated.
Similarly, the Lahore Tax Bar Association (LTBA) President Muhammad Asif Rana echoed these concerns in a formal appeal to Prime Minister Shehbaz Sharif. Despite the issuance of Circular No. 4 of 2025-26, Rana noted that many taxpayers remained unable to complete their return filing due to ongoing IRIS system breakdowns. He identified multiple computational errors, including double taxation of profit from debt and wrongful application of Section 4AB on exempt income from Associations of Persons (AOPs).
The LTBA highlighted that administrative delays had effectively shortened the statutory 92-day filing period, leaving taxpayers with insufficient time to comply. Citing Section 118 of the Income Tax Ordinance, the association described the current situation as an “impossible compliance environment.”
In light of these persistent challenges, LTBA and other business bodies have jointly urged the FBR to extend the return filing deadline further—ideally until December 31, 2025—to ensure a fair and transparent tax compliance process and safeguard national revenue integrity.