FBR dismisses 'fake' notification on extension of income tax filing deadline

The Federal Board of Revenue (FBR) dismissed a circulating fake notification on Wednesday claiming it had extended the deadline for income tax filing in 2026. The FBR spokesperson clarified on X that no such circular had been issued. A notification circulated on social media suggested the deadline would be extended until October 15, citing requests from trade bodies, taxpayers, and tax bar associations.

However, the FBR maintained that the deadline for submitting income tax returns for the tax year 2026 (TY26) remains September 30. Trade bodies and professionals had sought an extension, citing difficulties in timely filing due to delays in return form issuance and heavy online traffic. The Federation of Pakistan Chambers of Commerce and Industry president had formally requested an extension until October 31 for trade and industry.

The Karachi Tax Bar Association also submitted a letter highlighting issues like delays in draft notifications and technical glitches, causing difficulties in filing returns. In the previous tax cycle, FBR filings rose by 45.8% from 3.553 million in TY25 to 5.181 million in TY26 by September 29. The statutory deadline for filing tax returns remains September 30, but it has been extended two to three times in the past, often to the end of October.

Extensions were granted with minor penalties in recent years, but the latest budget has significantly increased these charges, making compliance more costly for late filers. The Finance Act 2026-27 increased penalties fivefold for companies to Rs100,000, from Rs20,000, and from Rs10,000 to Rs50,000 for associations of persons, and from Rs1,000 to Rs25,000 for individuals.

The FBR extended the deadline twice last year, initially from September 30 to October 15, and then to October 31, despite initial claims it would not do so.