ISLAMABAD – The Federal Board of Revenue (FBR) is expected to grant the first extension for filing income tax returns for the tax year 2020, due to delayed issuance of necessary forms. The original deadline for submission is set for September 30, 2020, affecting salaried individuals, businesses, Associations of Persons (AOPs), and companies with special fiscal years.
Taxpayers have faced challenges due to the belated release of the income tax return forms for the year 2020 by the FBR. This delay has hindered compliance efforts, as taxpayers await essential withholding statements under different categories.
According to tax experts, the recurrent issue of delayed form issuance has conditioned taxpayers to expect extensions beyond the initial due dates. This has led to a sentiment where taxpayers are less concerned with meeting the deadline and anticipate routine extensions from the FBR.
In response to these concerns, tax associations and bars have urged the FBR to align with legal provisions ensuring taxpayers adequate time to fulfill their filing obligations. They argue that the FBR should have ideally issued the finalized income tax return form at the commencement of the fiscal year, providing a reasonable window of approximately three months for filing before the September 30 deadline.
The FBR did release the finalized income tax return form on September 8, 2020, prompting a media campaign encouraging prompt submission. However, internal sources indicate that the FBR acknowledges the challenges faced by taxpayers this year and is inclined towards extending the filing deadline in light of these circumstances.
While urging taxpayers to meet the original deadline, the FBR recognizes the practical difficulties and is deliberating on extending the deadline to accommodate the procedural delays and ensure comprehensive taxpayer participation.
The extension decision by the FBR is awaited amidst ongoing discussions between tax authorities and representative bodies. This move aims to strike a balance between compliance requirements and the operational realities faced by taxpayers amid the delayed issuance of necessary forms and statements.
In conclusion, while the FBR emphasizes adherence to the current filing deadline, a potential extension is under consideration to address the genuine challenges encountered by taxpayers in meeting their income tax obligations for the year 2020. This decision will be pivotal in maintaining effective tax administration while ensuring fair and reasonable opportunities for all taxpayers to fulfill their legal duties in a timely manner.