Karachi, October 13, 2024 – The Federal Board of Revenue (FBR) has announced a clear process for taxpayers who are unable to meet the income tax filing deadline, offering a pathway to secure an extension.
This clarification comes as many taxpayers face unexpected challenges in meeting their obligations. The procedure for obtaining an extension is outlined in Section 119 of the Income Tax Ordinance, 2001.
According to the FBR, taxpayers required to submit their income tax returns under Section 114 or 117, or a wealth statement under Section 116, may request an extension in writing from the relevant Commissioner of Income Tax. The request must be submitted before the filing deadline.
The Commissioner may grant an extension under certain circumstances, including:
1. Absence from Pakistan – Taxpayers who are abroad and unable to file their returns on time.
2. Illness or Misadventure – Unexpected health issues or other unforeseen misfortunes that prevent timely filing.
3. Other Reasonable Causes – Situations deemed justifiable by the Commissioner, based on the taxpayer’s request.
An extension, however, is subject to specific limitations. As per the ordinance, any extension granted cannot exceed 15 days from the original deadline unless there are exceptional circumstances warranting a longer extension.
If a taxpayer’s request for an extension is denied by the Commissioner or if the granted extension is deemed insufficient, the taxpayer has recourse. They can escalate their application to the Chief Commissioner, who may grant an additional extension for a period not exceeding 15 days, unless extraordinary circumstances justify an even longer extension.
One important caveat highlighted by the FBR is that obtaining an extension for filing the tax return does not alter the due date for tax payment. Taxpayers are still required to pay any due taxes by the original deadline, as failure to do so may result in the imposition of a default surcharge under Section 205 of the ordinance.
The FBR encourages all taxpayers to be mindful of their tax obligations and utilize the extension mechanism responsibly. Taxpayers are reminded that while the extension provides relief for document submission, it does not exempt them from penalties related to non-payment of taxes by the stipulated deadline.
With this clarification, the FBR aims to alleviate concerns for individuals and businesses facing difficulties in meeting the tax filing deadline, while ensuring compliance with the tax laws of Pakistan.