KTBA urges FBR to extend tax returns filing date

KARACHI: Tax practitioners have urged the Federal Board of Revenue (FBR) to extend the last date to file income tax returns for the tax year 2017 due on August 31 as return forms are incomplete.

In a communication sent to the FBR chairman on Monday, the Karachi Tax Bar Association (KTBA) said that the return forms for individuals and association of persons (AOPs) have been notified and uploaded on the FBR’s portal on August 21 for filing the annual return and statement.

The tax bar said return of income / statement of final taxation for those taxpayers, who are not required to e-file, has not been issued yet. “This is creating undue panic among the taxpayers and bar members,” it said. It also said the wealth statement and wealth reconciliation statement for the tax year 2017 has not been notified yet due to which the taxpayers will not be able to file the return of income and / or statement of final taxation electronically or manually. “Although the wealth statement is available on Iris – FBR portal, the same is not notified and any taxpayer filing the same would be compelled to file the wealth statement without any legal cover,” it added.

The tax bar pointed out the time prescribed under the law for manual filing / e-filing of the tax returns along with wealth statement for the taxpayers filing under the Final Tax Regime (FTR) and salaried class is two months from the end of the financial year, ie, August 31 and similarly three months from the end of the financial year for business individuals, ie, September 30 every year. “However, return of income / statement of final taxation (for e-filing) though notified on August 17, 2017 is still incomplete, as the wealth statement has not yet been notified; thus, it will be difficult for the taxpayers to meet the deadline,” the tax bar added.  The FBR has been urged to notify manual returns of income / statement of final taxation and wealth statement along with the wealth reconciliation statement.

“Till such time these forms are notified, the FBR should extend the last date to file returns of income / statement of final taxation,” the KTBA said.