Tax experts anticipate that the Federal Board of Revenue (FBR) will likely extend the deadline for submitting income tax returns for the 2024 tax year, which is currently scheduled for September 30. Asif S. Kasbati, a senior member of the ICAP Fiscal Laws Committee, noted that individuals and Associations of Persons (AOPs) with tax years running from July 1, 2023, to June 30, 2024, are mandated to file their returns by the end of September. However, he believes that various factors suggest an extension is probable.
Kasbati pointed out the obligations detailed in Section 118, indicating that both individuals and AOPs, along with companies whose financial years end between July 1, 2023, and December 31, 2023, must adhere to the September deadline. Drawing from past experiences, he proposed that the FBR might extend the deadline to October 31, 2024, or offer a 15-day grace period.
He criticized the FBR and Pakistan Revenue Automation Limited (PRAL) for their failure to meet essential deadlines regarding the issuance of tax return forms. According to Rule 34A(2)(e), (3), and (4), draft electronic and manual return forms were due by July 1, 2024, but were only released on June 21, 2024, over five months late. Additionally, final return forms that should have been announced by January 31, 2024, were only issued on July 4, 2024, about six months behind schedule.
Kasbati also highlighted that slow internet speeds across the country, particularly in August and continuing into September, have significantly affected taxpayers’ ability to file their returns, despite government claims about enhancing digitalization. He mentioned that the IRIS system is expected to face major slowdowns from September 27 to September 30, compounding the difficulties for taxpayers. These ongoing IT issues further complicate the return filing process, leaving many taxpayers in a challenging position.
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