Federal Board of Revenue (FBR) on Tuesday issues press release and announced that a separate FBR Iris portal has been issued to facilitate non resident Pakistanis (overseas Pakistanis). By considering the issues they are facing regarding the submission / filing of income tax return filings.
New portal for overseas Pakistanis is here: http://iiris.fbr.gov.pk
Press Release by FBR regarding new portal for overseas Pakistanis
“Considering the problems faced by the overseas Pakistanis to get access to IRIS for filing of Income Tax Returns, FBR has provided following URL for their facilitation to access IRIS for filing the annual return.“
Last date to file income tax returns for tax year 2021
Federal Board of Revenue (FBR) has decided for no extension in tax returns filing date after September 30, 2021 to ensure the in-time tax collection in the country.
Improvement of tax compliance culture is prime objective of the government and FBR is actively trying to achieve it with the cooperation of taxpayers, said in a press release. The decision of non-extension in due date for filing of return last year saw an overwhelming response from taxpayers.
Press Release by FBR regarding no extension in date for filing tax returns
“Improvement of tax compliance culture is prime objective of the government and Federal Board of Revenue (FBR) is actively trying to achieve it with the cooperation of taxpayers. The decision of non-extension in due date for filing of return last year saw an overwhelming response from taxpayers.
In view of this the, Iris portal for filing of return this year was operationalized w.e.f 1st of July, 2021 in order to facilitate the compliant taxpayers.
FBR has advised all taxpayers required to file tax return by 30th September, 2021 to fulfill their legal obligation without waiting for the last date to avoid system delays which occur when a large number of taxpayers log-in for submission of returns near deadline. FBR has reiterated that there will be no extension in due date for filing of Income tax return.”
Last Date to file income tax returns / due date to submit tax returns for tax year 2021 as per Income Tax Ordinance 2001
There are three types of businesses according to there legal structure:
- Individual / Sole Proprietorship type of business
- Firm / Partnership firm / Association of Persons (AOPs)
- Company (Private, Public, Listed, Single Member Company)
According to Income Tax Ordinance, 2001 FBR has given due dates for filing annual income tax returns. If tax returns are filled after such last dates then FBR can impose penalty for late submission of tax returns.
Following are due dates / last dates for submission of tax returns according to type of business:
|Individual & Association of Person (AOP)||On or before 30th September|
|Company||On or before 31st December|
|Company having a special tax year||On or before 30th September|
Penalty for non-filing income tax returns, wealth statement, foreign assets/income statement & active status.
Section 182(1) Offences and penalties – Non-filing of Income Tax returns
Offence: Where any person fails to furnish a return of income as required under section 114 within the due date.
Penalties: Such person shall pay a penalty equal to 0.1% of the tax payable in respect of that tax year for each day of default subject to a maximum penalty of 50% of the tax payable provided that if the penalty worked out as aforesaid is less than [forty] thousand rupees or no tax is payable for that tax year such person shall pay a penalty of [forty] thousand rupees.
Minimum penalty – Salaried case
If seventy-five percent of the income is from salary and the amount of income under salary is less than five million Rupees the minimum amount of penalty shall be five thousand Rupees.
Explanation.— For the purposes of this entry, it is declared that the expression “tax payable” means tax chargeable on the taxable income on the basis of assessment made or treated to have been made under section 120, 121, 122 or 122C.
Amendment in Section 182(1) under Finance Act 2021
“Provided further that if taxable income is up-to eight hundred thousand Rupees, the minimum amount of penalty shall be five thousand Rupees:
Provided also that the amount of penalty shall be reduced by 75%, 50% and 25% if the return is filed within one, two and three months respectively after the due date or extended due date of filing of return as prescribed under the law.
Section 182(1AA) – Failure to furnish wealth statement
Offence 114 & 116: Where any person fails to furnish wealth statement or wealth reconciliation statement.
Penalty: Such person shall pay a penalty of “0.1% of the taxable income per week or Rs.[100,000] whichever is higher.”
Section 182(IAAA) – fails to furnish a foreign assets and income statement
Offence (116A): Where any person fails to furnish a foreign assets and income statement within the due date.
Penalty: Such persons shall pay a penalty of 2 percent of the foreign income or value of the foreign assets for each year of default.
Section 182(A) – Return not filed within due date & penalty for active taxpayer status
Offence: If a person fails to file a return of income under section 114 by the due date as specified in section 118. He may not be included in the active taxpayers’ list for the year for which return was not filed within the due date.
Penalty: However, a person shall be included in the active taxpayer list on filing return after the due date, if the person pays surcharge:
(i) twenty thousand in case of a company;
(ii) ten thousand in case of an association of persons;
(iii) one thousand in case of an individual.