Income Tax Return Filers to Reap Benefits Following FBR's Positive Decision
FBR extended the tax return filing deadline to October 31, following demands from trade bodies and tax bar associations, with a clear commitment that no further extensions would be granted.
Karobar
In a development that bodes well for income tax return filers, manual filers will now receive the same tax benefits as those who opt for electronic filing. The Federal Tax Ombudsman (FTO) has taken this significant step, ensuring that manual filers can now enjoy lower withholding tax rates, bringing them on par with their electronically filing counterparts.
This welcome change comes in response to a concern raised by tax lawyer Waheed Shahzad Butt, who highlighted the disparities in the treatment of manual and electronic tax filers. The FTO, prompted by this concern, conducted a thorough investigation into the matter, engaging in discussions with key officials from the Federal Board of Revenue (FBR) to address the issue.
The crux of the problem was the FBR's omission of manually filed income tax returns for Tax Year 2022 from the Active Taxpayer List (ATL), even when they were submitted within the stipulated timeframe. This practice ran afoul of established regulations and was deemed unfair to taxpayers. Thankfully, a resolution was reached through constructive dialogue, sparing the need for legal action.
According to the FTO's decision, the FBR is now obligated to establish a comprehensive system and set clear rules to ensure that all return filers for the current tax year are included in the ATL, aligning with the board's prescribed guidelines.
Furthermore, it's worth noting that the FBR recently extended the deadline for filing tax returns by an additional month. In a late-night announcement, the board disclosed that it had decided to push the last date for filing tax returns to October 31. This decision was made in response to requests from trade bodies and various tax bar associations, after the initial deadline of September 30 had been categorically stated as non-negotiable.
However, the FBR emphasized that this extension would be the final one, underlining its commitment to the new deadline and ensuring that no further extensions for filing tax returns would be granted.
