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The Federal Board of Revenue (FBR) has established a deadline of September 30 for filing income tax returns and has issued a warning regarding potential penalties for late submissions.

Failure to submit tax returns by the deadline will lead to legal action, with defaulters facing a daily penalty of 0.1% on the outstanding tax amount.

FBR Sets September 30 Deadline for Income Tax Returns: Penalties and Enforcement Measures

ISLAMABAD

The Federal Board of Revenue (FBR) has announced a firm deadline of September 30 for taxpayers to file their income tax returns for the fiscal year ending June 30, 2024. This decision marks a crucial date for taxpayers, as the FBR has yet to indicate any potential extension to the filing deadline for Tax Year 2024.

The FBR has warned that failure to submit returns by the stipulated deadline will result in stringent legal actions. Taxpayers who miss the deadline will incur a daily penalty of 0.1% of the outstanding tax amount. This penalty structure is designed to encourage timely compliance and deter late submissions.

For individual taxpayers, the minimum penalty for late filing is set at Rs1,000. However, those in other categories may face fines ranging up to Rs50,000, depending on the amount of tax owed and the duration of the delay.

income tax

In addition to these financial penalties, the FBR has emphasized the necessity for individuals with significant financial activities or assets to file their returns. This includes those with overseas travel records, substantial bank balances, properties, homes, or vehicles. The FBR’s strict stance aims to ensure that all high-net-worth individuals and those with notable financial engagements comply with tax regulations.

The FBR has also outlined specific enforcement measures for traders and shopkeepers. Those who are not registered under the trader-friendly scheme will face stringent penalties. Unregistered shops will be subject to closure: a seven-day seal will be imposed for the first instance of non-compliance, escalating to a 20-day closure for subsequent defaults.

Furthermore, shopkeepers who fail to register will face severe financial penalties. The first instance of non-compliance will incur a fine of Rs50 million, with fines increasing to Rs200 million for each additional default. These measures are part of the FBR’s broader strategy to ensure compliance and enhance revenue collection from the commercial sector.

The FBR’s enforcement strategy reflects its commitment to tightening tax compliance and addressing gaps in the reporting system. By setting a clear deadline and imposing significant penalties, the FBR aims to foster a culture of timely tax submissions and ensure that all taxpayers, regardless of their financial status or business operations, adhere to tax regulations.

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