ByConsequences of Missing the Income Tax Return Deadline
File Your Return Voluntarily
If you’ve missed the income tax return deadline but haven’t received a notice from the Federal Board of Revenue (FBR), you can still file your return voluntarily. While penalties might be imposed, they could be less severe than if you wait for a notice.
Penalties for Late Filing
The FBR imposes penalties for late filing. These penalties can range from PKR 10,000 to PKR 50,000. Additionally, you will be charged a penalty based on the tax payable and the number of days the return is delayed. It’s crucial to file your return as soon as possible to minimize these charges.
Removal from Active Taxpayer List (ATL)
Failing to file your income tax return on time will result in your name being removed from the Active Taxpayer List (ATL). This can have implications for various financial transactions and services.
Late Filer Status
You will be marked as a “late filer” until the following year. This status may impact your credibility and eligibility for certain benefits or services.
Potential for Audit
Filing a late return increases your chances of being selected for an audit. The FBR will scrutinize your tax return more closely, so accurate record-keeping is essential to avoid complications.
Loss of Tax Credits
Tax credits are only valid for the current tax year. Missing the deadline means forfeiting these credits.
Importance of Timely Filing
To avoid penalties, audits, and loss of tax credits, it’s advisable to file your income tax return on time. Accurate record-keeping can simplify the process and reduce potential issues.
