ISLAMABAD: The administration decided late at night to extend the deadline for filing income tax returns for the tax year 2024 until October 14.
With this change, those who failed to file their tax returns by the September 30 deadline will have a chance to do so.
The income tax code stipulates that returns must be submitted by September 30. However, the government has routinely extended this deadline, sometimes even until the end of October.
FBR representatives had denied earlier in the day that an extension would be given this time. However, a notice sent out late at night stated that the deadline had been moved to October 14.
According to the notification, the decision was made in response to demands from tax bars, trade associations, and the general public.
Due to problems with the Iris site, traders had already asked for an extension of the deadline to October 31.
Approximately 3.66 million income tax returns were received by FBR as of September 30, 2024, compared to 1.95 million during the same period the previous year—a rise of 87.9%.
In the preceding tax year, i.e. 2023, it had received a total of 6.24m returns.
Between July 1 and September 30, 2024, 340,473 new filers were added to the tax rolls, according to preliminary figures.
Zero filers
The primary achievement of FBR for this year is the rise in the total number of returns compared to the previous year. Nevertheless, this tax year also saw a sharp increase in nil-filers. These are typically filed in order to be added to the Active Taxpayers List, take advantage of lower tax rates, or complete one-time financial transactions.
1.33 million people filed nil-filers between July 1 and September 30, 2024, making up 36.45 percent of total returns filed for the tax year 2024. 3.37 million zero returns were filed in the prior year, 2023, accounting for more than half of all returns filed.
The government has now chosen to do away with both the non-filer and notional-filer categories in an effort to buck this tendency.
Individuals who file a return solely to qualify for a lower tax rate even though they haven’t paid any taxes are known as nominal filers. This poses a serious problem for the government.
It was suggested that non-filers be restricted from traveling outside of the Hajj and Ziarat, and that they be barred from participating in any financial or investment operations. There are three layers in the suggested method depending on the amount filed. With the exception of the Asaan Account, non-filers are not permitted to create bank accounts, purchase vehicles, real estate, financial instruments, or cars.
