Tax return filing deadline extended by two months
The ongoing political turmoil and changes in tax calculation under the new act led to an extension, relevant sources in NBR say
The government has extended the last date for filing individual income tax to 31 January next year.
The National Board of Revenue (NBR) officially announced the extension yesterday.
For companies, the deadline has been extended to 28 February next year from the previous date of 15 January.
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According to NBR sources, the ongoing political turmoil and changes in tax calculation under the new income tax act led to an extension of the time limit for tax return submission.
Till 27 November, the NBR collected 19 lakh tax returns from citizens so far. Currently, there are around 90 lakh holders of Tax Identification Number (TIN) in the country.
No tax fair was held this year. Rather, the NBR organised a nationwide special support service at the tax zone office premises to help taxpayers submit their income tax returns.
Today, 30 November is National Income Tax Day, marking the final day for tax return submission. However, the NBR has extended the time even beyond this in the past, and paying tax within that extended period would not incur any penalty.
In previous law, if a taxpayer has a valid reason, they can apply for a time extension from the respective tax office. But with the new law, the opportunity to seek time has been abolished. Returns can be submitted at any time throughout the year.
But if the return is filed after the deadline, a 4% interest on tax will be payable. Also, taxpayers will not get any of the investment rebates they were supposed to get, so they will have to pay more tax.
Many have questioned the rationale of such a provision in the Income Tax Act.
