Will FBR Extend the Last Date to file Income Tax Returns?
Will FBR Extend the Last Date to file Income Tax Returns? The majority of taxpayers have filed their income tax returns for the tax year 2022. However, Still, tax returns of a lot of taxpayers are still pending filing.
FBR extended date of tax returns filing previously
The Federal Board of Revenue (FBR) has already extended the last date to November 30, 2022, for filing an income tax return for the tax year 2022. The last date for filing income tax returns was September 30, 2022, for all taxpayers except companies, which are required to file their returns up to December 31, 2022.
However, through Circular No. 16 of 2022 and Circular No. 17 of 2022, the FBR granted date extension twice due to current flood situation in the country and request from various trade bodies and tax bar associations.
New Section 7E of Income Tax Ordinance 2001
Tax practitioners said that although the FBR had extended the date for return filing and resolved many issues pertaining to the return filing yet the taxpayers are facing problems related to calculation of deemed income under Section 7E of the Income Tax Ordinance, 2001.
Interestingly, the FBR issued SRO 1955(I)/2022 on October 24, 2022 to amend Income Tax Rules, 2002 and made it mandatory for taxpayers to provide details pertaining to deemed income of immovable property along with the return for tax year 2022.
Since many taxpayers had filed their income tax returns during July 01 – October 23 so the amendment deprived such taxpayers in providing the required details.
In order to resolve the issue the FBR issued another SRO 2052(I)/2022 allowing to submit details of deemed income by those taxpayers, who filed their returns before October 24, 2022.
The tax practitioners said that the FBR should allow relaxation to all taxpayers of the mandatory requirement of deemed income detail. They said that it should defer it for one year as many taxpayers may not be able to fulfill the requirement.
No Further Extension in date of Tax Filing
Moreover, during a recent visit to Karachi, FBR chairman Asim Ahmad made it clear that no further date extension will allow further beyond November 30, 2022. He however assured the tax practitioners that all the issues about the return filing will resolve.
Issues highlighted by KTBA
A month ago, Karachi Tax Bar Association (KTBA) had also sent a letter to the FBR chairman highlighting many issues related to return filing.