FBR Issues Procedure for Income Tax Return Filing Date Extension

FBR Issues Procedure for Income Tax Return Filing Date Extension

Karachi, September 27, 2023 – The Federal Board of Revenue (FBR) has released a detailed procedure for individuals and entities seeking an extension in the filing of income tax returns.

This step comes as part of the FBR’s efforts to streamline the process and provide clear guidelines for taxpayers.

READ MORE: FBR May Extend Return Filing Date for Tax Year 2023 Amidst Technical Challenges

According to sources within the FBR, taxpayers requesting an extension for filing their income tax returns must follow a specific procedure. The key details of this procedure are as follows:

Application to Commissioner Inland Revenue: The taxpayer must file an application with the Commissioner Inland Revenue. In this application, they must provide a valid reason for requesting an extension.

READ MORE: Pakistan and Germany Initiate Renegotiations to Eliminate Double Taxation

Legal Basis: The extension of the income tax return filing date is governed by Section 119 of the Income Tax Ordinance, 2001. This section outlines the mechanism for granting extensions for filing returns and other related documents.

Types of Returns: This procedure applies to individuals or entities required to furnish:

A return of income under Section 114 or 117.

A wealth statement under Section 116.

Timely Application: The application for an extension must be submitted in writing by the due date for filing the income tax return or statement that the application relates to.

READ MORE: FBR Exempts Categories of Taxpayers from Tax Return Filing

Valid Reasons for Extension: The Commissioner may grant an extension if they are satisfied that the applicant is unable to file the return or statement by the due date due to one of the following reasons:

Absence from Pakistan.

Sickness or other misadventure.

Any other reasonable cause.

Duration of Extension: The extension granted should not exceed fifteen days from the original due date for filing the return or statement, unless there are exceptional circumstances justifying a longer extension.

Chief Commissioner’s Authority: In cases where the Commissioner does not grant an extension, the Chief Commissioner may, upon receiving an application from the taxpayer, grant an extension or further extension for a period not exceeding fifteen days, unless exceptional circumstances warrant a longer extension.

No Impact on Default Surcharge: Importantly, any extension of time granted does not change the due date for payment of income tax under Section 137 and does not impact the charge of default surcharge under Section 205.

READ MORE: Pakistan Sets New Record with 4.72 Million Income Tax Returns

This clear and standardized procedure aims to ensure that taxpayers have a well-defined process for requesting extensions when genuine reasons necessitate it. It also enables the tax authorities to efficiently manage extension requests while upholding tax compliance standards.

Taxpayers seeking an extension should adhere to these guidelines to ensure a smooth and legitimate process for extending their income tax return filing dates.

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