Filing income tax returns is a mandatory requirement for individuals and businesses in Pakistan, and it is important to meet the deadlines set by the Federal Board of Revenue (FBR). However, what happens if you miss the deadline for filing your income tax returns? This article will discuss the available options and consequences of late filing.
If you miss the deadline for filing your income tax return but have not yet received a notice from the FBR, you can still file the return voluntarily anytime. In such cases, the FBR may not penalize you for filing the return late, as long as you file it before receiving the tax notice. However, if you owe taxes, it is better to file the return as soon as possible to minimize the penalty. The penalty for late filing is calculated based on the tax payable multiplied by the number of days late filed.
It is also important to note that if you are entitled to a refund from the FBR, you should file the return even if you miss the deadline. This will allow you to claim the refund that you are entitled to, and it can be adjusted against any penalties that you may owe.
However, if you file your income tax return after the deadline, you will be automatically selected for an audit. This means that the FBR will scrutinize your tax returns more closely and may require additional documentation to support your claims. Therefore, it is important to keep accurate records of your income and expenses to avoid any issues during the audit process.
Moreover, if you have tax credits to claim, it is in your best interest to file your tax return on time. Tax credits are only relevant for the current tax period and do not carry forward to future years. Therefore, if you miss the deadline, you will lose the opportunity to claim the tax credit for that period.
In conclusion, while it is important to file your income tax returns on time in Pakistan, there are still options available if you miss the deadline. However, it is advisable to file the return as soon as possible to minimize any penalties and avoid any issues during the audit process. Keeping accurate records of your income and expenses is also crucial to ensure a smooth tax filing process.