FBR issues circular to relax income tax return filing deadline

FBR issues circular to relax income tax return filing deadline

ISLAMABAD: Federal Board of Revenue (FBR) has issued a circular to relax the return filing deadline up to November 30, 2022.

The FBR issued Circular No. 17 of 2022 to extend the last date for filing income tax returns for tax year 2022 up to November 30, 2022 from October 31, 2022.

It is second date extension for return filing for tax year 2022 granted by the FBR. Previously, the revenue body issued Circular No. 16 2022 last month to grant extension in date for filing income tax return to October 31, 2022 from September 30, 2022.

READ MORE: PTBA seeks clear 90 days for return filing after making portal error free

The latest date extension has been granted in view of current flood situation in the country and requests from various trade bodies and tax bars.

With the fresh date extension, taxpayers including salaried persons, business individuals, association of persons (AOPs) and companies other than having account year July to June would able to file the return of income.

The corporate entities having financial year between July 01 to June 30 are required to file their income tax returns by December 31 every year.

The FBR through SRO 978(I)/2022 dated June 30, 2022 issued income tax return form for tax year 2022 giving statutory time to taxpayers for making compliance in filing of return.

READ MORE: KCCI demands one month date extension for return filing

Section 14 of Income Tax Ordinance, 2001, highlighted the categories of taxpayers, who are required to file their annual return of income and wealth statement.

According to Income Tax Ordinance, 2001, following class of taxpayers are required to file return of income:

— every company

— every person (other than a company) whose taxable income for the year exceeds the maximum amount that is not chargeable to tax under this Ordinance for the year

— any non-profit organization as defined in clause (36) of section 2;

— every person whose income for the year is subject to final taxation under any provision of this Ordinance

Any person not covered by above clauses are also required to file return of income who,—

(i) has been charged to tax in respect of any of the two preceding tax years;

(ii) claims a loss carried forward under this Ordinance for a tax year;

READ MORE: Calculating property valuation uphill task in completing tax return: Rehan Jafri

(iii) owns immovable property with a land area of five hundred square yards or more or owns any flat located in areas falling within the municipal limits existing immediately before the commencement of Local Government laws in the provinces; or areas in a Cantonment; or the Islamabad Capital Territory;

(iv) owns immoveable property with a land area of five hundred square yards or more located in a rating area;

(v) owns a flat having covered area of two thousand square feet or more located in a rating area;

(vi) owns a motor vehicle having engine capacity above 1000 CC;

(vii) has obtained National Tax Number; or

(viii) is the holder of commercial or industrial connection of electricity where the amount of annual bill exceeds rupees five hundred thousand;

(ix) is a resident person registered with any chamber of commerce and industry or any trade or business association or any market committee or any professional body including Pakistan Engineering Council, Pakistan Medical and Dental Council, Pakistan Bar Council or any Provincial Bar Council, Institute of Chartered Accountants of Pakistan or Institute of Cost and Management Accountants of Pakistan; or

(x) is a resident person being an individual required to file foreign income and assets statement under section 116A.

The FBR said that filing of income tax return is also mandatory for persons or classes of persons notified by the Board with the approval of the Minister in-charge.

READ MORE: Withholding tax rates on immovable property transactions during 2022-2023

It further said that return of income is also mandatory for every individual whose income under the head ‘Income from business’ exceeds rupees three hundred thousand but does not exceed rupees four hundred thousand in a tax year is also required to furnish return of income from the tax year.

Leave a Reply

Your email address will not be published. Required fields are marked *