ISLAMABAD: The Federal Board of Revenue (FBR) has set September 30 as the deadline for income tax returns for the financial year 2023-24.
According to the FBR, no decision has been made yet to extend the filing deadline for Tax Year 2024 hence the last date for filing income tax will be September 30.
According to FBR, those who fail to submit tax returns may face legal action and will be included in the newly inducted ‘late filer category’.
As per the tax collection body, those who travel abroad frequently, maintain bank balances or own a car or property are bound to file tax returns.
WHAT IS THE NEW “LATE FILER” CATEGORY?
The “Late Filer” category, introduced in the Finance Bill 2024, is a classification for taxpayers who submit their tax returns after the due date. This category carries higher tax rates and penalties to encourage timely filing.
Higher Tax Rates
Late Filers will face increased withholding tax rates compared to regular Filers. For instance:
Property transactions: Late Filers will pay up to 8 percent tax on properties valued over Rs 100 million, double the 4 percent rate for regular Filers.
Capital gains: A flat 15 per cent tax rate applies to Late Filers on gains from immovable property acquired after July 1, 2024, regardless of the holding period.
HOW TO AVOID BECOMING A LATE FILER?
To avoid becoming a Late Filer, ensure you submit your tax returns on time, gather your documents early, and consider seeking professional help from tax consultants.
WHAT ARE THE PENALTIES FOR LATE FILERS?
Late Filers must pay a surcharge to regain Active Taxpayer List (ATL) status: Rs. 1,000 for individuals, Rs. 10,000 for AOPs, and Rs. 20,000 for companies. Additionally, a minimum penalty of Rs. 1,000 per day applies for late filing.