ISLAMABAD: Taxpayers who fail to file their income tax returns by September 30 will face significantly higher penalties from October 1, sources citing Federal Board of Revenue (FBR) sources.
According to FBR sources, the existing “late filer” category will be discontinued from October 1. Taxpayers who miss the September 30 deadline will instead be classified as non-filers and will face penalties applicable to the new category.
Under the proposed penalty structure, individuals who fail to submit their income tax returns could face a fine of up to Rs25,000, compared with the existing penalty of Rs1,000.
The penalty for an Association of Persons (AOP) will increase from Rs10,000 to as much as Rs50,000, while companies failing to file their returns could face a penalty of up to Rs100,000, compared with the current Rs20,000.
The FBR has also set September 30 as the final deadline for businesses to complete sales tax and income tax registration under applicable requirements.
Taxpayers registered under the Easy Tax Scheme will also face penalties if they fail to meet the filing deadline. According to FBR sources, the penalty under the scheme will be Rs10,000 during the first month after the deadline.
The amount will increase to Rs25,000 in the second month and Rs50,000 in the third month.
The FBR has urged individuals, businesses and other taxpayers to complete their income tax filing and registration requirements before the September 30 deadline.
The move is aimed at encouraging timely compliance with tax regulations and ensuring taxpayers avoid the higher financial penalties that may apply after the deadline.
Taxpayers have therefore been advised to submit their returns within the prescribed period to avoid being classified as non-filers and facing increased penalties.
