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December 5, 2020

Return-filers with legit reasons to get date relaxation

Business

December 5, 2020

KARACHI: Federal Board of Revenue (FBR) on Friday said there would be no extension in the last date for filing income tax returns; however those taxpayers, who had lodged applications with the officials giving genuine reasons, would be entertained as per law.

The FBR issued these directives to all the chief commissioners of Large Taxpayers Offices (LTOs), Medium Taxpayers’ Offices (MTOs), Corporate Tax Offices (CTOs) and Regional Tax Offices (RTOs) regarding last date of filing of Income Tax Return for tax year 2020.

According to the FBR, the provision of Section 114 of the Income Tax Ordinance, 2001 warrants filing of annual tax return on or by September 30 every year implying a period of 90 days to taxpayers to discharge their legal obligation.

“This year, since new income tax return form was uploaded on IRIS on September 08, 2020, the deadline for filing of the tax return was extended through Circular No. 04 of 2020 on September 30, 2020 till December 08, 2020, allowing the citizens full statutorily – mandated time of 90 days in one go; piecemeal repeated extensions compromise tax administration’s credibility and adversely affect taxpayers’ perception for the future.”

The FBR, however, said provisions of Section 119(I) of the Ordinance stipulates that a “person required to furnish a tax return under Section 114 … may apply, in writing, to the Commissioner for an extension of time to furnish the return.”

Since the date of filing of tax returns for the tax year 2020, being December 08, 2020 was retained as the final date for the purpose, it was absolutely necessary that commissioners should grant extension in all cases of hardship of any nature, it added. “In order to render the entire process of filing for extension and granting of time to taxpayers for filing of tax returns, IRIS is being modified to make it facilitative and less time-consuming,” the FBR said further. It also said the chief commissioners had been advised to be fully vigilant and ensure that no requests for extension remain unattended in their jurisdiction.