Karachi Tax Bar Association seeks extension in income tax returns deadline till Dec 31

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ISLAMABAD: The Karachi Tax Bar Association (KTBA) on Tuesday appealed to Prime Minister Imran Khan for an extension within the last date for filing of tax returns for a period of three months, that is, until Dec 31.

Meanwhile, the Federal Board of Revenue (FBR) is optimistic that it’ll receive quite two million returns by the deadline of September 30, which could become a ‘historic moment’ for the tax machinery just in case it’s achieved. The FBR had received approximately 1.4m tax returns till Sept 28.

The KTBA acknowledged that fulfillment of 90 days’ time was provided under the law to file the return of income under section 118 of the Ordinance. It further highlighted unavailability of FBR Portal for 15 days. “90 days’ time should only start when a flawless and error-free return of income in line with the provisions of the ordinance is uploaded on Iris portal, which intrinsically is yet to be notified,” the association said.

The KTBA further said the FBR Portal, both e-FBR and Iris “remained hacked and disabled from August 14, 2021” and it had been intermittently not working properly till the top of August 2021 which again denied taxpayers 90 days’ seamless time prescribed under the law to file the return of income.

On Tuesday, the FBR issued a circular to facilitate taxpayers in filing their tax returns within the last two days with extended hours for filing of returns also as payment of taxes. this is often additionally to the extensive nationwide awareness campaign engaging national heroes, urging people to file their returns to enhance tax compliance within the country.

This year, the FBR notified the tax returns from July 2021 to satisfy the 90-day (three-month) requirement under the law . Until now, the FBR has clarified that the last date won’t be extended. The FBR has also engaged cellular companies to send SMS to taxpayers to remind them about filing of their tax returns.

Last year, the govt had not extended the last date for filing of tax returns beyond Dec 8, 2020. it’s worth mentioning that folks can file their tax returns beyond the last date, but will need to pay fine which within the current year are going to be Rs1,000 per day.

Without fine, a commissioner also can grant 15 days’ extension on specific request by the individual taxpayer.

The KTBA during a letter, a replica of which was shared with media through WhatsApp, mentioned that letters were earlier sent to chairman of FBR for seeking extension within the return on the plea to correct the issues within the notified return.

It further said that the KTBA feels its responsibility that the taxpayers aren’t in the least during a position to satisfy the deadline of filing the Return of Income by September 30, till such time all the issues and formulae errors are removed and therefore the return of Income is flawless and error-free.

“As such we are hopeful that you simply will kindly instruct the chairman FBR to increase the date of filing of Return of Income a minimum of up to Dec 31, 2021 and oblige,” President KTBA Muhammad Zeeshan Merchant said.

He said the FBR is totally ignoring the a part of the tax advisors and tax consultants who are actually the partners of the FBR in helping to realize their targets. “We at the KTBA feel that if the date isn’t extended, the target within the mind of FBR can’t be achieved,” Mr Zeeshan said.

It further said it’s habitual at the FBR to amend and modify the return of income till last moment without notifying an equivalent to the stakeholders which creates bad impression on the a part of the FBR.

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