Islamabad, January 9, 2026 – In a decisive regulatory revision, the Federal Board of Revenue (FBR) has curtailed the condonation authority of Commissioner Inland Revenue (IR), reducing the maximum permissible time-limit from three years to two years. This amendment, formalized through SRO 14(I)/2026, supersedes the earlier SRO 1444(I)/2024, which had previously conferred broader discretionary powers to the Commissioner-IR.
Under the prior framework, a Commissioner-IR could condone delayed submissions where statutory or regulatory timelines for applications or acts were exceeded, subject to prescribed procedural safeguards. The registered person or their authorized representative was required to submit a detailed application citing grounds for delay. The Commissioner would decide the matter within 30 days if no additional information was needed or within 45 days if further documentation was required, recording reasons for approval or rejection on merit.
With the promulgation of SRO 14(I)/2026, the permissible condonation period has now been restricted to two years, thereby imposing a more stringent temporal framework on delayed applications. This reform aims to enhance regulatory discipline, curtail procedural leniency, and expedite resolution of pending matters within the FBR’s jurisdiction.
Furthermore, Commissioners-IR are mandated to furnish monthly consolidated reports to the Chief Commissioner-IR, detailing each processed case, including the registered person, NTN/STRN, dates of initial application, submission of complete information, decision date, and number of days condoned. This move underscores the FBR’s commitment to transparency, accountability, and meticulous record-keeping in tax administration.
Tax professionals and registered entities are advised to adjust compliance timelines in accordance with the revised condonation limits to avoid procedural complications.