Taxpayers still can file annual tax return for tax year 2022 after expiry of last date in order to avoid harsh action, including imprisonment, for violating the tax laws, officials at Federal Board of Revenue (FBR) said.
A taxpayer who failed to file income tax return for tax year 2022 by last date of December 15, 2022, has still an opportunity to discharge liability after payment of penalty.
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Section 114 of Income Tax Ordinance, 2001 explained persons and business who are mandatorily required to file income tax return.
For tax year 2022, the last date for filing income tax return for salaried persons, business individuals, association of persons (AOPs) and corporate entities having special year of accounting, was December 15, 2022, which was extended many times from actual due date of September 30, 2022.
Similarly, the last date for companies having accounting year according to the fiscal year (July – June) were required to file their returns by December 31, 2022.
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Since the last date has expired, the taxpayers can file their returns for the year. However, now they are required to pay penal amount to file the return.
The penalties have been prescribed under Section 182 of the Income Tax Ordinance, 2001. According to it:
01. Where any person fails to furnish a return of income as required under section 114 within the due date.
Such person shall pay a penalty equal to higher of –
(a) 0.1 per cent of the tax payable in respect of that tax year for each day of default; or
(b) rupees one thousand for each day of default:
Provided that minimum penalty shall be —
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(i) rupees ten thousand in case of individual having seventy-five percent or more income from salary; or
(ii) rupees fifty thousand in all other cases:
Provided further that maximum penalty shall not exceed two hundred percent of tax payable by the person in a tax year:
Provided also that the amount of penalty shall be reduced by 75 per cent, 50 per cent and 25 per cent if the return is filed within one, two and three months respectively after the due date or extended due date of filing of return as prescribed under the law;
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Explanation.— For the purposes of this entry, it is declared that the expression “tax payable” means tax chargeable on the taxable income on the basis of assessment made or treated to have been made under section 120, 121, 122 or 122D;
