Tax return filing date extended up to Dec 15, 2022

Tax return filing date extended up to Dec 15, 2022

ISLAMABAD: The federal government on Wednesday extended the last date for filing income tax returns by 15 days to December 15, 2022 from November 30, 2022.

Finance Minister Ishaq Dar at a press conference announced the extension in return filing date.

READ MORE: Another tax return filing date extension on the cards?

A large number of taxpayers have filed their income tax returns for tax year 2022. Yet many taxpayers are stuck up in a complicated calculation of income from property and unable to discharge their liability of return filing.

The Federal Board of Revenue (FBR) had extended the last date till November 30, 2022 for filing income tax return for tax year 2022. However, tax experts believe that the FBR should have to resolve the matter under Section 7E of Income Tax Ordinance, 2001 before setting deadline for return filing.

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, 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.

Tax practitioners said that 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.

Interestingly, the FBR issued SRO 1955(I)/2022 on October 24, 2022 to amend Income Tax Rules, 2002 and made it mandatory for taxpayers to provide details pertaining to deemed income of immovable property along with the return for tax year 2022.

Since many taxpayers had filed their income tax returns during July 01 – October 23 so the amendment deprived such taxpayers in providing the required details.

In order to resolve the issue the FBR issued another SRO 2052(I)/2022 allowing to submit details of deemed income by those taxpayers, who filed their returns before October 24, 2022.

The tax practitioners said that the FBR should have been allowed relaxation to all the taxpayers the mandatory requirement of deemed income detail. They said that it should be deferred for one year as many taxpayers may not able to fulfil the requirement.

During his recent visit Karachi, FBR chairman Asim Ahmad had made it clear that no date extension would be granted further beyond November 30, 2022. He however assured the tax practitioners that all the issues pertaining to the return filing would be resolved. Furthermore, tax authorities promised to issue a clarification related to Section 7E.

Tax practitioners said that so far no such clarification was issued and complications in this regard was also not resolved.

A month ago, Karachi Tax Bar Association (KTBA) sent a letter to the FBR chairman highlighting many issues related to return filing. At present the issues pertaining to Section 7E still are creating hurdles in return filing.