The Federal Board of Revenue (FBR) has reiterated that the deadline for filing income tax returns for the tax year 2024 is September 30, 2024. There will be no extension granted.
To ensure timely compliance, the FBR has been actively conducting awareness campaigns, sending notifications via email and SMS to remind taxpayers of their obligation to file returns.
Who Needs to File Income Tax Returns?
Any individual or entity with taxable income in Pakistan is required to file an income tax return. This includes individuals with income from employment, businesses, property, or other sources. Additionally, those who own a motor vehicle or have registered a business entity must also file returns.
If you have already created your National Tax Number (NTN) and registered with the FBR, you are obligated to file your income tax return before the due date.
Non-resident individuals who have stayed in Pakistan for less than 183 days are also liable to file returns if they have an NTN.
How to Check Your Registration Status
To determine if you are registered with the FBR, you can use the following methods:
- SMS: Send “ATL” followed by your CNIC number (without spaces) to 9966. You will receive a response indicating whether your registration is active or if no record exists.
- Active: You are registered and compliant for the past year.
- Inactive: You have not filed returns for the previous year and must file for both the past and current years.
- No record exists: You are not registered with the FBR. If you meet the criteria for taxable income or property ownership, you should register.
Important Note:
It’s essential to verify the ownership of your cell phone number. If it is registered under someone else’s name and they have not filed their returns, you may face consequences, such as SIM blocking or utility connection issues, even if you are not registered.
Late Filing of Income Tax Returns
Failing to file your income tax return within the prescribed deadline can have significant consequences. This article outlines the potential penalties and implications associated with late filing in Pakistan.
1. Loss of Active Taxpayer Status:
- Late Filer Designation: You will be categorized as a late filer, which may limit certain tax benefits and privileges.
- Removal from ATL: Your name may be removed from the Active Taxpayers’ List, affecting your ability to access government services and participate in certain financial transactions.
2. Adjustment of Losses:
- Carry Forward Losses: You may lose the ability to carry forward losses from previous tax years, reducing your taxable income and potential tax savings.
- Delayed Benefits: Any tax benefits associated with carrying forward losses will be delayed until you file your return.
3. Denial of Refunds:
- Withheld Refunds: If you are eligible for a tax refund, it may be withheld until you file your return.
- Interest Charges: You may be subject to interest charges on the amount of the withheld refund.
4. Late Filing Surcharge:
- 12% Surcharge: A surcharge of 12% may be imposed on the total tax payable for the year.
- Daily Penalty: In addition to the surcharge, a daily penalty may apply, calculated based on the number of days the return is late.
5. Legal Actions:
- Notices and Penalties: The FBR may issue notices and impose penalties if you fail to file your return within a reasonable time.
- Legal Proceedings: In extreme cases, the FBR may initiate legal proceedings against you.
6. Impact on Future Tax Filings:
- Carry Forward of Penalties: Penalties incurred for late filing may be carried forward to future tax years.
- Increased Scrutiny: You may face increased scrutiny from the FBR in future tax assessments.
