Grant of more time for ITR filing: Commissioners told to entertain applications

ISLAMABAD: The Federal Board of Revenue (FBR) Friday directed Chief Commissioners to entertain applications of late-filers/non-filers for grant of extension in time period for filing of income tax returns (ITR) beyond the stipulated deadline of December 8, 2020.

In this regard, the FBR has issued instructions to the field formations including Large Taxpayers' Offices, Medium Taxpayers' Office, Corporate Tax Offices, and Regional Tax Offices, here on Friday.

Explaining the FBR's instructions, a tax expert explained that the Board has specified that the last date for filing of income tax returns is December 8, 2020. Therefore, it is necessary that all applications for extension in time for filing of income tax returns from taxpayer are to be accepted generously by the relevant officers of income tax.

The FBR notified this while discussing the Section 119 of the Income Tax Ordinance 2001, which deals with the "extension in time for filing income tax returns".

Through the instructions, the FBR has directed its officers to be vigilant and generous in giving extensions in time for filing tax returns.

That is why the FBR has made its IRIS capable/handle the extensions applications from taxpayers.

According to the FBR's instructions, the provisions of Section 114 of the Income Tax Ordinance, 2001 (ITO 2001) warrant filing of annual tax return on or by September 30th every year implying a period of 90 days to taxpayers to discharge their legal obligation. This year, since new income tax return form was uploaded on IRIS on September 8, 2020, the deadline for filing of the tax return was extended vide Board's Circular No 4 of 2020/IR Operations, dated 30th September, 2020, till December 8, 2020 - allowing the citizens full statutorily-mandated time of 90 days in one go; piecemeal repeated extensions, compromise tax administration's credibility, and adversely affect taxpayers' perception for the future.

However, simultaneously provisions of Section 119(1) of the Income Tax Ordinance 2001 stipulate that a "person required to furnish a tax return under section 114... may apply, in writing to the Commissioner for an extension of time to furnish the return."

Thus, while it is important that the date of filing of tax returns for the tax year 2020, being December 8, 2020, is retained as the final date for the purpose, it is absolutely necessary that Commissioners generously grant extensions in all cases of hardship of any nature.

In order to render the entire process of filing for extension and granting of time to taxpayers for filing of tax returns, the IRIS is being modified to make it facilitative and less time-consuming, the FBR stated.

The chief commissioners, both in terms of administrative responsibilities as well as the legal powers vested in them under Section 119(4), are required to be fully vigilant and ensure that no requests for extensions remain unattended in their jurisdiction, the FBR added.

Copyright Business Recorder, 2020