Islamabad, November 13, 2025 — The Federal Board of Revenue (FBR) has officially notified strict monetary penalties for taxpayers who fail to file their 2025 income tax returns within the due date, marking one of the most stringent enforcement measures in recent years.
According to the FBR’s latest notification, any person who fails to submit their income tax return under Section 114 of the Income Tax Ordinance, 2001 will now face a daily penalty that could run into tens of thousands of rupees.
The tax authority stated that the penalty will be the higher of:
• 0.1% of the tax payable per day of default, or
• Rs1,000 per day of default.
However, the minimum penalty has been fixed at Rs10,000 for individuals whose income is at least 75% salary-based, and Rs50,000 for all other taxpayers. The maximum penalty can go up to a massive 200% of the total tax payable for the year.
FBR has also introduced leniency slabs to encourage late filers to comply:
• If the return is filed within one month after the due date, the penalty will be reduced by 75%.
• Filing within two months will get a 50% reduction.
• Filing within three months will see a 25% reduction in the imposed fine.
The FBR clarified that the term “tax payable” refers to the tax chargeable on taxable income based on assessments made under Sections 120, 121, 122, or 122D of the ordinance.
Tax experts say the latest move signals the FBR’s determination to tighten compliance, broaden the tax base, and boost revenue collection before the fiscal year’s end. Citizens are being urged to file their returns promptly to avoid steep fines and legal consequences.