Federal Board of Revenue (FBR) notified instructions for procedures of applying extension requests in filing income tax returns for tax year 2020.
Further instructions disappointed all stakeholders (tax consultants / practitioners, taxpayers, chambers etc.,) who have already requested to the FBR for extension of last date for Tax Year 2020. Last Friday, FBR has already cleared that it would not further extend the last date for filing income tax return for tax year 2020.
Pakistan Tax Bar Association (PTBA) has already requested in a letter dated: December 02, 2020 for extension up to January 31, 2020. There are many causes behind the extension reason, the main reason mentioned by the Pakistan tax bar: miscalculations in the tax return form.
Corona Virus a pandemic situation all over the world, require to provide further extension. Where cases are already increasing day by day and taxpayers are reluctant to do compliance. It is the need of the hour to provide a favorable environment in this situation.
FBR on Monday instructed to all the RTOs / LTUs regarding procedure of manual receipt of applications for extension to file income tax return for tax year 2020. This all shows that FBR not interested in extension of date for filing tax return.
The FBR instructions reproduced here:-
(1)- FBR’s earlier instructions on the topic contained in letter C.No.6(2)S(IR-Ops/2020(Pt), dated December 4 2020 and to state that Pakistan tax bar various chambers of commerce and industry,trade bodies,and sections of print and electronic media approached FBR requesting that either the last date for filing of income tax returns for tax year 2020 be extended or the process of seeking extensions from the commissioner under section 119(1) of the income tax ordinance 2001 be rendered facilitative.
(2)- It has accordingly been decided
i)- That,every inland revenue field formation would establish a help desk to receive manual requests for extension.
ii)- That one request for extension addressed to chief commissioner inland revenue concerned could cover multiple taxpayers provided it contains (a) taxpayers names (b) their CNIC/NTN and (c) identification of jurisdiction — to the extent possible.
iii)- That the option for filing of online requests for extension would also be available and can be availed to the maximum degree.
iv)- That extension would be granted generously to the extent possible.
(3)- The chief commissioners required to ensure proper receipt of all requests grant of extensions and report the number of requests received and the extensions granted by December 10.2020.
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