ISLAMABAD – The clock is ticking for taxpayers as the September 30 deadline is here. Those who fail to submit their income tax returns today could face a Rs25,000 penalty, as the FBR moves toward tougher action against late filers from October 1.
FBR reportedly moves to end existing “late-filer” category from October 1. Taxpayers who miss today’s cutoff could therefore face significantly higher financial penalties under the reported new structure.
New Penalties
Under the reported changes, the financial consequences for late filing could increase sharply:
- Individuals: Rs25,000, compared with the current Rs1,000
- Associations of Persons (AOPs): Rs50,000, up from Rs10,000
- Companies: Rs100,000, compared with Rs20,000
The proposed changes are aimed at strengthening tax compliance and encouraging taxpayers to submit their returns within the prescribed period.
FBR urged taxpayers to complete their returns before the deadline and ensure that all required supporting documents and information are properly provided. The tax authority has also warned that taxpayers could face action for concealing assets or submitting inaccurate information. Authorities may use various legal mechanisms to recover outstanding tax liabilities, including action involving bank accounts where applicable.
Taxpayers have been encouraged to use the available online filing facilities and complete their submissions before the deadline to avoid complications and potential penalties.
Tax return filing has reportedly increased significantly compared with the same period last year. Millions of taxpayers have already submitted their returns, although concerns have also emerged over technical difficulties and problems experienced by some taxpayers while using the online filing system.
Tax professionals and business representatives have reportedly called for additional time, citing difficulties in completing returns and other filing-related issues.
Commercial bank branches will remain open until 10:00pm on September 30 to provide taxpayers with additional time to make over-the-counter payments of government duties and taxes.
The extended banking hours have been arranged following a request from the FBR. Taxpayers will also be able to use available digital channels, including internet banking, mobile banking applications and ATMs, to complete eligible payments.
For taxpayers required to file their returns by September 30, the final hours could prove crucial. Those who complete their filings before the deadline can avoid the reported higher penalties associated with late submission. Meanwhile, taxpayers who fail to meet the cutoff could find themselves facing substantially larger fines from October 1.
Banks to remain open until 10 pm as tax return deadline ends today
