Income tax returns: PTBA urges FBR to grant a further 34-day extension

ISLAMABAD: The Pakistan Tax Bar Association (PTBA) has demanded of the Federal Board of Revenue (FBR) to grant taxpayers a further 34-day extension for filing income tax returns for Tax Year 2026, citing delays in issuing the original filing notification and the need to facilitate taxpayers in meeting their statutory obligations.

The Lahore Tax Bar Association (LTBA) has also urged the FBR to ensure taxpayers are provided the complete statutory period of 90 days for filing income tax returns for Tax Year 2026, seeking a further extension in the filing deadline.

Meanwhile, FBR sources said that the FBR will not extend date for filing of returns, but impose huge penalties on non-filers.

In a letter addressed to FBR Chairman Rashid Mahmood Langrial, PTBA President Sheikh Ahsan Ul Haq and General Secretary Tahir Mahmood Butt stated that the FBR’s initiative to synchronise the filing period with the 92-day period prescribed under the Income Tax Ordinance, 2001, was appreciable.

The association welcomed the 30-day extension already granted in two phases of 15 days each. However, it pointed out that the Gazette notification prescribing the filing date for Tax Year 2026 was issued on September 2, 2026, representing a delay of 64 days from July 1, 2026, the date reckoned for filing purposes.

According to PTBA, the extensions granted so far have only partially compensated for the delay, leaving taxpayers with an effective shortfall of 34 days. It, therefore, requested the FBR to allow an additional 34 days to facilitate the timely submission of income tax returns.

The association also referred to figures reportedly shared on social media, according to which the FBR had received 7.3 million income tax returns by October 29, 2026, accompanied by revenue collection of Rs85 billion.

In comparison, during the corresponding period of the preceding year, 6.8 million returns had been filed, generating revenue of Rs88.5 billion.

PTBA observed that despite a quantitative increase in the number of returns filed, the corresponding revenue collection had declined. It suggested that returns carrying greater revenue implications might still be in the pipeline and could be filed as the process progresses.

The association maintained that granting the requested extension would provide taxpayers with adequate time to fulfil their filing obligations and could also contribute towards improving the quality of revenue collection, ultimately benefiting the national exchequer.

PTBA urged the FBR chairman to consider its request and allow a further 34-day extension for filing income tax returns for Tax Year 2026.

When contacted, Asif S Kasbati, Member of the Institute of Chartered Accountants of Pakistan (ICAP) Fiscal Law and Economic Advisory Committee, explained that the FBR, in exercise of powers conferred under Section 214A of the Income Tax Ordinance, 2001, had extended the deadline till Saturday, October 31, 2026, through Circular No. 4 dated October 15, 2026.

He said the extension applied to taxpayers who were originally required to file their income tax returns by September 30, 2026, and whose filing deadline had earlier been extended till October 15, 2026, through Circular No. 3 dated September 30, 2026.

Kasbati added that the extensions had been granted following requests from various trade bodies and tax bar associations.

Explaining the legal position regarding a statutory deadline falling on a public holiday, Kasbati, a senior tax consultant, said that under the applicable legal principle, where the last date for filing a tax return or fulfilling another statutory obligation falls on a public holiday, the deadline automatically shifts to the next working day.

He referred to Section 10 of the General Clauses Act, 1897, which deals with the computation of time where a court or office is closed on the last day prescribed for performing an act.

He also cited an earlier precedent in which the FBR issued a press release on December 15, 2018, stating that the deadline for filing income tax returns, falling on Saturday, December 15, 2018, would automatically move to Monday, December 17, 2018, under the General Clauses Act.

Kasbati, who is also a member of the Pakistan Business Council’s Core Tax Committee and Legal Committee, maintained that although the FBR had formally extended the Tax Year 2026 return filing deadline till Saturday, October 31, 2026, the statutory deadline would effectively stand extended till Monday, November 2, 2026.

However, he advised taxpayers to file their income tax returns as early as possible and retain copies of the relevant FBR circulars and supporting legal provisions in their permanent tax records for ready reference in case of any subsequent notice or query from the tax authorities.

Copyright Business Recorder, 2026