Pakistan Tax Community Seeks Extension In Date Of Filing Income Tax Returns

General Secretary Malik Muhammad Ali Awan requests Prime Minister Shehbaz Sharif to consider extending deadline for filing Income Tax returns until November 30, 2024 to ensure justice for taxpayers

LAHORE: (UrduPoint/UrduPoint / Pakistan Point News-Sept 30^th, 2024) Pakistan Tax Community Association formally requested an extension for submitting Income Tax returns in a letter addressed to the Prime Minister. The letter was penned by Malik Muhammad Ali Awan, General Secretary of the Association.

Awan referred to the frequent system-generated messages sent by the Federal board of Revenue (FBR), which remind taxpayers to file their Income Tax returns for the fiscal year 2024 by September 30, 2024, without any extensions. He emphasized the urgency of this matter, noting that the rapid changes in fiscal and Income Tax laws necessitate careful calculations to avoid penalties for incorrect declarations.

He expressed concerns regarding the classification of taxpayers into filers, late filers, and non-filers, and highlighted the FBR's recommendation to impose a fine of Rs1 million for incomplete or incorrect returns. This could lead to significant challenges for taxpayers, who are entitled to fair legal processes as guaranteed by the constitution.

Awan also pointed out that as the constitutional head of the government, the Prime Minister should be made aware of the difficulties faced by Chartered Accountants, tax practitioners, and consultants represented by the Pakistan Tax Community Association. He noted that there have been multiple errors during the filing process through the IRIS system, which has experienced glitches and miscalculations.

He reminded the Prime Minister that the FBR has a history of extending deadlines for Income Tax return filings, as seen last year when the deadline was postponed to October 31. Additionally, he criticized the FBR and Pakistan Revenue Automation Limited (PRAL) for their failure to meet critical deadlines related to the issuance of return forms, which should have been available by January 31, 2024, but were not issued until July 4, 2024.

Awan warned that the FBR’s proposed measures to counter potential tax collection shortfalls could lead to severe actions against taxpayers, including freezing bank accounts and imposing bans on property and vehicle purchases for tax evaders. He further explained that "nil filers" would face immediate repercussions, while those avoiding tax payments between Rs0.5 million and Rs1 million risk having their electricity and gas services disconnected. The FBR had previously ordered the disconnection of mobile services for 0.5 million non-filers and outsourced audits for high-net-worth individuals.

In light of these circumstances, Awan requested the Prime Minister to consider extending the deadline for filing Income Tax returns until November 30, 2024, to ensure justice for taxpayers.