Meeting income tax payment deadlines is critical for taxpayers in Pakistan. Missing a due date can lead to default surcharge, penalties, and enforcement action by the Federal Board of Revenue (FBR).
To help taxpayers stay compliant, Section 137 of the Income Tax Ordinance, 2001 clearly explains when and how taxes must be paid for tax year 2026.
Here’s an interactive, easy-to-follow breakdown of the key rules every taxpayer should know.
✅ When Is Income Tax Due for Tax Year 2026?
📅 Tax Payable With Return of Income
Under Section 137(1):
• Tax payable on taxable income, including minimum tax (Section 113) or alternative corporate tax (Section 113A),
• Is due on the same date as filing your return of income for tax year 2026.
👉 No separate notice is required—your tax must be paid by the return filing deadline.
📬 Tax Payable After an Assessment Order
If the FBR issues:
• An assessment order
• An amended assessment order
• Or any other order determining tax payable
Then, under Section 137(2):
• A notice of demand will be served
• The tax must be paid within 30 days from the date the notice is served
Advance Tax Exception (Section 147)
For taxpayers paying advance tax:
• Due dates follow Section 147(5), (5A), or (5B)
• These dates override the general 30-day rule
📌 This applies mainly to quarterly advance tax payments.
🔁 Can You Get More Time to Pay?
Yes. Under Section 137(4):
• A taxpayer may apply in writing
• The Commissioner may:
o Grant an extension of time, or
o Allow payment in instalments (equal or varying amounts)
⚠ Approval depends on the taxpayer showing good cause.
🚨 What Happens If You Miss an Instalment?
Under Section 137(5):
• If you default on any instalment
• The entire remaining tax balance becomes immediately payable
This can trigger recovery proceedings.
💸 Does Instalment Relief Stop Default Surcharge?
No. According to Section 137(6):
• Even if instalments or extension are granted
• Default surcharge under Section 205 still applies
• Surcharge is calculated from the original due date
🧠 Why These Deadlines Matter
Knowing and meeting tax payment deadlines helps you:
• Avoid default surcharge and penalties
• Prevent recovery actions by FBR
• Maintain a clean tax profile
• Qualify for refunds and appeals
✅ Quick Checklist for Tax Year 2026
✔ Pay tax by the return filing due date
✔ Pay demand tax within 30 days of notice
✔ Follow Section 147 dates for advance tax
✔ Apply early if instalments are needed
✔ Never miss an instalment payment
📌 Final Takeaway
For tax year 2026, tax payment deadlines are strictly enforced. Whether you are paying tax with your return or after an assessment order, understanding Section 137 can help you stay compliant and avoid unnecessary financial costs.
Disclaimer: This article is for informational purposes only and does not constitute legal or tax advice. Tax laws, deadlines, and FBR procedures may change. Readers should consult a qualified tax professional for advice tailored to their circumstances.