September 30, 2023, is the deadline for filing tax returns. However, as always, many people haven’t done so expecting an extension. FBR may give an extension of 30 days by revising the deadline for filing tax returns.
According to the sources privy to the FBR, the tax return filing deadline is highly likely to be extended to October 31. The official announcement is expected within the next 1-2 days through an income tax circular.
Why is FBR considering Extending the Tax Return Filing Deadline?
IRIS 2.0, designed for tax filing, faces problems like calculation errors, data-saving issues, unresponsive buttons, and glitches. These technical troubles hinder the process, risking errors in submitted data.
These issues highlight the urgent need for improvements, especially in the outdated withholding income tax challan generation system. These challenges have significantly impacted taxpayers’ and tax consultants’ timely and efficient submission of return forms.
Why Should You File Income Tax Returns?
Pakistanis should file income tax returns because it is required by law for all citizens who earn an income. Filing an income tax return is also important because it helps the government collect taxes to provide essential public services, such as education and healthcare.
Important Information About Pakistan’s Tax System and Laws
The tax year in Pakistan runs from July 1 to June 30.
The deadline to file an income tax return is September 30.
The income tax rate in Pakistan varies from 5% to 25%, depending on the income level.
There are several deductions and credits that Pakistanis can claim on their income tax returns. For example, Pakistanis can claim deductions for medical, education, and charitable donations.
Pakistanis who fail to file an income tax return or to pay taxes on time may be subject to penalties and interest charges.