FBR not to further extend returns filing deadline

KARACHI: The Federal Board of Revenue (FBR) is not ready to extend the deadline of tax returns filing for the tax year 2016 this time around as it gave extensions multiple times during the past two years, officials said on Tuesday.  

Till 15 November, the number of return e-filers stood at 467,778, much below than the filers for the year 2015, currently standing at around 1.2 million. Return filing for the tax year 2015 is allowed without fine and penalties in order to save taxpayers from an additional withholding tax rate.  The officials said the number of filers for the tax year 2016 would double by 30 November, which is the last date.

They said the FBR adopted a soft stance for non-filing by business and salaried individuals beyond last dates for tax years 2014 and 2015. 

“However, for this year the window will not be available for the tax return filing beyond November 30,” a tax official said. “We will take harsh actions, including fine and penalties, against the non-compliant people.”

The current deadline was extended from August 31 for salaried persons and September 30 for business individuals, association of persons and people falling under the final tax regime.

The officials said if a person has been unable to file the return despite an intention he can apply for an extension under Section 119 of the Income Tax Ordinance 2001.

The law empowers a commissioner to grant up to 15 days of extension in case of a taxpayer’s absence from Pakistan, sickness or any other reasonable cause.

The officials said the penalty for not filing income tax return and wealth statement will be according to the law. 

A person who fails to furnish a return is liable to pay a penalty equal to 0.1 percent of the tax payable in respect of that tax year for each day of default.

 The maximum penalty could go up to 50 percent of the tax payable. Similarly, a non-compliant person will pay 0.1 percent of the taxable income a week or Rs20,000 – whichever is higher – as penalty for not filing mandatory wealth statement.