No extension in return filing date for Tax Year 2021

No extension in return filing date for Tax Year 2021

The last date for filing an income tax return for the tax year 2021 is September 30, 2021. Taxpayers including salaried persons, business individuals, Association of Persons (AOPs), companies with special tax year etc. are required to file their returns by September 30.

As per commitment the Federal Board of Revenue (FBR) launched the income tax return forms on July 01, 2021, and given a statutory time period of three months to the taxpayers for filing the returns for tax year 2021.

Last year the FBR, while extending the last date for the return of the tax year 2020, made it clear the tradition of date extension will not be continued from next year.

The FBR extended the date for filing tax returns up to December 08, 2021, after the tax bars objected that the taxpayers should be given a statutory time of three months from the issuance of return forms. Last year the FBR issued the finalized return form on September 08, 2020.

(a) every company;

(ab) 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; or

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

(ad) any welfare institution approved under clause (58) of Part I of the Second Schedule;

(ae) every person whose income for the year is subject to final taxation under any provision of this Ordinance;

(b) any person not covered by clause (a), (ab), (ac) or (ad) 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;

(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 a foreign income and assets statement under section 116A.

(1A) Every individual whose income under the head ‘Income from the 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.

In a statement, the FBR said that improvement of tax compliance culture is the prime objective of the government and the Federal Board of Revenue (FBR) is actively trying to achieve it with the cooperation of taxpayers. The decision of non-extension in due date for filing of return last year saw an overwhelming response from taxpayers.

In view of this the Iris portal for filing of return this year was operationalized w.e.f 1st of July, 2021 in order to facilitate the compliant taxpayers.

FBR has advised all taxpayers required to file tax returns by 30th September 2021 to fulfill their legal obligation without waiting for the last date to avoid system delays which occur when a large number of taxpayers log in for submission of returns near the deadline. FBR has reiterated that there will be no extension in due date for filing of Income-tax return.

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