The Federal Board of Revenue (FBR) has warned taxpayers who have not submitted their income tax returns that heavy penalties will be imposed from November 1.
According to FBR sources, October 31 has been set as the final deadline for filing income tax returns. Taxpayers who fail to meet the deadline will face substantial fines for late submission starting November 1.
Under the new measures, the existing ‘late filer’ category will be abolished from November 1, leaving only the ‘non-filer’ classification. As a result, penalties for individuals and businesses failing to submit their income tax returns on time will increase significantly.
FBR sources said that instead of the existing late filing fee, non-filers will be subject to much higher penalties from November 1.
Under the revised penalty structure, the fine for individuals who fail to submit their income tax returns on time will increase from Rs1,000 to Rs25,000.
Similarly, the penalty for an Association of Persons (AOP) will rise from Rs10,000 to Rs50,000, while companies failing to file their returns within the stipulated period will face a fine of Rs100,000 instead of the existing Rs20,000.
Meanwhile, October 31 has also been declared the final opportunity for members of the business community to register for sales tax and income tax.
Under the Easy Tax Scheme, taxpayers who miss the return submission deadline will also face substantial penalties. According to the announced schedule, a fine of Rs10,000 will be imposed during the first month after the deadline, increasing to Rs25,000 in the second month and Rs50,000 in the third month.
The FBR’s latest warning is aimed at encouraging taxpayers to fulfil their tax obligations before the October 31 deadline and avoid the significantly higher financial penalties that will take effect from November 1.
