ISLAMABAD – September 30 is here, and taxpayers who miss the deadline could find themselves facing a much heavier bill. From October 1, new penalties for late tax returns are set to kick in, putting a fresh cost on delayed filing.
Federal Board of Revenue (FBR) prepares to end existing late-filer category, exposing those who miss the September 30 income tax return deadline to significantly higher penalties from October 1. Taxpayers who fail to file their returns by September 30 will be treated as non-filers from October 1, losing the benefit of the comparatively lower penalties currently applicable to late filers.
For individuals, the penalty could jump from just Rs1,000 to as much as Rs25,000. The surge is even steeper for businesses and other taxpayer categories. The penalty for an association of persons (AOP) will rise from PKR10,000 to PKR50,000, while companies could face a penalty of PKR100,000, compared with the existing PKR20,000.
The looming change puts added pressure on taxpayers who have yet to complete their filing requirements.
FBR sources said the September 30 deadline also applies to businesses required to complete their income tax and sales tax registration.
The revenue authority has been urging individuals and businesses to complete their registration and tax returns before the deadline, as the financial consequences of missing it are expected to become considerably heavier from October 1.
The move comes as the government pushes for stronger tax compliance and seeks to bring more individuals and businesses into the formal tax system.
Taxpayers covered under the government’s Asan Tax Scheme will face a separate penalty structure, with the amount increasing month by month if returns are not submitted within the prescribed period.
Those filing during the first month after the deadline will face a 10,000 penalty. The fine will climb to PKR25,000 during the second month, before reaching Rs50,000 in the third month. The escalating structure is intended to push taxpayers toward timely filing rather than allowing delays to continue unchecked.
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