FBR Likely to Extend Deadline for Filing Income Tax Returns

Federal Board of Revenue is likely to grant a one-month extension for the last date of filing income tax returns. A confidential source shared with ProPakistani that while the current deadline for filing income tax returns is set for September 30, there is a strong possibility that this deadline might be extended to October 31. The formal announcement is anticipated through an income tax circular by the Federal Board of Revenue (FBR) in the next 1-2 days. The new IRIS module 2.0, designed for this purpose, was reportedly riddled with issues such as calculation errors, data-saving problems, unresponsive buttons, and frequent glitches. These technical hitches not only hinder the efficiency of the filing process but also pose a risk of errors and mistakes in submitted data. IRIS 2.0 errors include a miscalculated turnover tax at 1.50% instead of 1.25% for eligible manufacturers and inaccuracies in zero-tax calculations for certain property sales. The module also causes problems for non-residents and exhibits data issues in tax deductions, emphasizing the need for urgent improvements, especially in the outdated withholding income tax challan generation system. These challenges have significantly impacted the timely and efficient submission of return forms by taxpayers and tax consultants.