ISLAMABAD: Federal Board of Revenue (FBR) on Wednesday issued a circular to notify the third extension in date for return filing tax year 2022.
The FBR issued Circular No. 18 of 2022 to further extend the date for filing annual return for tax year 2022 up to December 15, 2022 from November 30, 2022.
Further extension in date for filing tax returns has been granted in view of requests received from various trade bodies and tax bar associations.
The last date for filing income tax return was September 30, 2022 for all taxpayers except companies, which are required to file their returns up to December 31, 2022.
However, previously through Circular No. 16 of 2022 and Circular No. 17 of 2022, the FBR granted date extension twice due to current flood situation in the country and request from various trade bodies and tax bar associations.
According to leading tax practitioners although the FBR had extended the date for return filing and resolved many issues pertaining to the return filing yet the taxpayers are facing problems related to calculation of deemed income under Section 7E of the Income Tax Ordinance, 2001.
A day earlier, the Karachi Tax Bar Association (KTBA) demanded an extension to file annual return and statement of income for tax year 2022.
The tax bar in a letter sent to the chairman of Federal Board of Revenue (FBR) on November 29, 2022 informed that neither taxpayers nor the consultants would able to complete return filing task by November 30, 2022.
KTBA President Syed Rehan Hasan Jafri stated that during recent Karachi visit of the FBR chairman bottlenecks in return filing were discussed. The issue of filing the newly introduced 7E Form was also discussed at length.
“Our meeting remained very conducive wherein it was ensured that all the issues and concerns and the glitches would be removed at priority basis to ease and expedite preparation and the filing work both for taxpayers and the tax advisors,” the KTBA president said.
Our meeting was followed by another very successful meeting at your directions, with the following members and the Chief Commissioner, Corporate Tax Office, Inland Revenue, Karachi on November 07, 2022 for the purpose of facilitation and resolution of the issues.
The FBR chairman has been apprised that all the concerns which were shared, either these were related to return filing in general or filing of 7E form in particular are still pending unsolved.
The taxpayers and their counsellors both are faced with the stigma of Status Quo. Subsequently a notification has been issued vide SRO 2052 on November 22, 2022 whereby the date for filing 7E annexure has been extended for those who already had filed their return before the form of 7E Annexure was introduced on October 13, 2022.
This is another task assigned to the Taxpayers / Tax Advisors to complete it as per the stipulated times mentioned therein per SRO cited above and yet the Form to be submitted is still pending issued, which need to be issued as soon as possible in order to facilitate the Taxpayers within the stipulated time given to Taxpayers.
Therefore, the KTBA urged the FBR chairman to extend the date for all the taxpayers at par instead, along with the resolution of these errors and mistakes.