AGL 23.81 Decreased By ▼ -0.54 (-2.22%)
AIRLINK 103.60 Increased By ▲ 0.60 (0.58%)
BOP 5.66 Decreased By ▼ -0.05 (-0.88%)
CNERGY 3.93 Decreased By ▼ -0.03 (-0.76%)
DCL 8.36 Decreased By ▼ -0.14 (-1.65%)
DFML 41.70 Decreased By ▼ -1.29 (-3%)
DGKC 88.30 Decreased By ▼ -0.60 (-0.67%)
FCCL 22.70 No Change ▼ 0.00 (0%)
FFBL 40.88 Increased By ▲ 2.68 (7.02%)
FFL 8.96 Decreased By ▼ -0.15 (-1.65%)
HUBC 160.49 Decreased By ▼ -3.21 (-1.96%)
HUMNL 11.46 Decreased By ▼ -0.34 (-2.88%)
KEL 4.82 Decreased By ▼ -0.03 (-0.62%)
KOSM 4.09 Decreased By ▼ -0.04 (-0.97%)
MLCF 38.60 Increased By ▲ 0.19 (0.49%)
NBP 53.60 Increased By ▲ 0.75 (1.42%)
OGDC 130.60 Decreased By ▼ -2.29 (-1.72%)
PAEL 25.36 Decreased By ▼ -0.29 (-1.13%)
PIBTL 6.25 Decreased By ▼ -0.13 (-2.04%)
PPL 118.90 Decreased By ▼ -0.60 (-0.5%)
PRL 23.95 Decreased By ▼ -0.65 (-2.64%)
PTC 12.92 Increased By ▲ 0.28 (2.22%)
SEARL 59.11 Decreased By ▼ -0.49 (-0.82%)
TELE 7.43 Decreased By ▼ -0.06 (-0.8%)
TOMCL 34.99 Decreased By ▼ -0.16 (-0.46%)
TPLP 8.72 Decreased By ▼ -0.13 (-1.47%)
TREET 15.90 Increased By ▲ 0.10 (0.63%)
TRG 55.95 Decreased By ▼ -1.95 (-3.37%)
UNITY 34.95 Increased By ▲ 0.06 (0.17%)
WTL 1.20 Decreased By ▼ -0.02 (-1.64%)
BR100 8,536 Decreased By -8.5 (-0.1%)
BR30 27,187 Decreased By -204 (-0.74%)
KSE100 79,944 Decreased By -48.3 (-0.06%)
KSE30 25,500 Decreased By -43.9 (-0.17%)

ISLAMABAD: Tax bar associations, chartered accountant firms, tax advisers and tax experts have approached the Federal Board of Revenue (FBR) seeking an extension in the last date for filing of income tax returns up to October 31, 2023 due to technical and legal issues.

Talking to Business Recorder, Asif S Kasbati, a leading Karachi-based tax expert, explained the reasons behind the expected extension in date for filing income tax returns.

Last week, the FBR issued system generated-SMS to all the taxpayers, “Dear taxpayer, please file your income tax return for FY-2023 at the earliest. The last date to file return is September 30, 2023, which will not be extended”, it added.

System errors in filing income tax returns, wealth statements irk taxpayers

Karachi Tax Bar Association has already informed the FBR that the new IT glitch in the IRIS is the inability to respond to notices. This new glitch in the system has emerged recently and is pertained to the inability of the taxpayer to respond to notices issued by IR Officers (IROs) following the modifications of orders in appeal orders by the Commissioner Inland Revenue- Appeals (CIR-A).

After a CIR-A modifies an assessment order, the concerned IRO issues a notice to the taxpayer for further proceedings, for whom there is currently no option available within the IRIS 2.0 to submit his reply or response.

FBR Chairman was also informed by the Karachi Tax Bar Association that the data from the previous year’s wealth statement is suddenly absent/ remove from the current year’s statement. This abrupt change has created unparalleled hardship and is causing inconvenience for the taxpayers.

We have always held the belief that Information Technology (IT) should serve to alleviate the burdens of taxpayers. Unfortunately, the current state of IRIS 2.0 appears to be doing the opposite by causing frustration.

When contacted, Asif S Kasbati, Pakistan Business Counsel Core Tax Committee Member, he elaborated that as per section 118, (a) individuals & Associations of Persons having year from July 1, 2022 to June 30, 2023 and (b) Companies having year-end between January 1, 2022 to December 31, 2022 are required to file tax year (TY) 2023 return on or before September 30, 2023 as per law.

However, owing to Sep 30, 2023 falling on Saturday, being a public holiday, the due date would be Monday (October 2, 2023), keeping in view General Clauses Act.

Kasbati anticipated extension in return filing date up to October 31, 2023 owing to the 4 major reasons:

(i) Return draft & final deadlines missed by FBR & PRAL.

(ii) Several issues in return, but partly resolved.

(iii) An expected load on IRIS

(iv) Till now less than 1 million returns filed for TY 2023 while about 4.8 million returns filed for TY 2022.

Kasbati, who is also ICAP Fiscal Laws Committee Member, elaborated that the Return Draft & final deadlines were missed by FBR & PRAL. He stated that the FBR/ PRAL was supposed to upload draft return form on IRIS by November 15, 2022 and final one to be notified by January 31, 2023 (and to the extent of Finance Act 2023 changes about TY 2023 by July 7, 2023). There was a delay in issuance of the final return form which was uploaded on IRIS by the PRAL.

Regarding several issues in return filing, he stated that through Pakistan Tax Bar Association (PTBA) letter of 2.9.23 highlighted Resolution/Correction of Technical/Practical Issues/Problems & IRIS predefined formulas in the Income Tax Return/ Wealth Statement Forms for Tax Year 2023.

While KTBA vide Letters raised several issues about IT returns.

Consequently, the Wealth Statement & section 7E issues have only been resolved on September 2, 2023. It was assured that the remaining issues would also be resolved. Whether the FBR/PRAL has done their homework earlier, he raised question.

Kasbati said that it is expected that at least 5 million returns will be filed for tax year (TY) 2023. So far, less than 1 million returns have been filed after resolution of the Wealth Statement issue and Section 7E issues. Therefore, 80 percent of the taxpayers are still not compliant for the tax year 2023.

He also predicted that keeping in view phase-wise extension like last year TY 2022 and several other issues, the FBR may extend the deadline till November 30, 2023. Initially, the FBR may grant general extension up to October 31, 2023.

In order to avoid any default surcharge, penalty & notices, Kasbati recommended taxpayers to submit Income Tax Return as soon as possible by September 30, 2023, keeping in view FBR’s SMSs with clear indication that no extension will be allowed. He further suggested that in the absence of an extension circular, it is recommended to submit an online extension application with proper reason keeping in view section 119 of the Income Tax Ordinance 2001.

Copyright Business Recorder, 2023

Comments

Comments are closed.

Maqbool Sep 25, 2023 08:14am
A 30 day extension is very acceptable, due to the FBR computer system problems, rather than extension upto Dec 2023 .normally given .
thumb_up Recommended (0)
Muhammad Sohail Sep 25, 2023 10:37am
Due to several issues with me and my family I unable to submit my tax return file, 2023, before September 30, 2023, kindly give extension to the end of October 31, 2023, I shall be highly grateful to you. Thanks.
thumb_up Recommended (0)
Ssajida Shoukat Sep 25, 2023 10:47am
FBR should outsource its services to some international company and reduce burden of its thousands of officers for benefit of the country
thumb_up Recommended (0)
JAVED AHMED Sep 25, 2023 01:39pm
@A veery genuine proposal to which i agree 100%. Ssajida Shoukat,
thumb_up Recommended (0)
JAVED AHMED Sep 25, 2023 01:40pm
A very genuine and posotive suggestion. I agree 100%.
thumb_up Recommended (0)
Kureshi Sep 25, 2023 02:01pm
Rs 5000 notes may be retained by the banks and should not be paid by banks so that 5000 gradually diminish from circulation
thumb_up Recommended (0)
M WAJID JAMIL Sep 25, 2023 05:00pm
This deadline may be easier for tax payers with income only from SALARY. But when you have to file Wealth Statement, reconciliation of opening & closing (so called) wealth balances, and have dividend income, profit from bank, purchase and sale of shares and capital gain/loss, loans from your family members or brothers or from credit cards for running your home, the advance tax or details of tax deducted from various payments like school fee, Internet bill, Utilities bills, dividends, THE TAX PAYER NEEDS CONSIDERABLE TIME TO COLLECT ALL THIS INFORMATION AND THEN SUBMIT TAX RETURN WITH APPROXIMATE ACCURACY.
thumb_up Recommended (0)
Aslam Khan Sep 25, 2023 05:27pm
In order to increase the Tax return filers, it is essential to extend the deadline for at least one month keeping in view the iris 2.0 glitches public faced and constant modifications made in the portal. Thanks
thumb_up Recommended (0)
HBMirza Sep 26, 2023 09:10am
It should be up to 30 Dec 2023 Because of these reasons.
thumb_up Recommended (0)
Aamir Sep 26, 2023 09:49am
Till end Nov atleast
thumb_up Recommended (0)
Sheikh Muhammad Naeem Sep 26, 2023 12:57pm
There should be an option to submit manually as every senior citizen above 65 years of age is not competent enough to submit his returns online. Besides a pensioner can't bear heafty fees of lawyers / chartered accountants and others involved in this lucrative profession.
thumb_up Recommended (0)
iftikhar khan Sep 26, 2023 01:16pm
This is Usual happenings. For the last 15 years. always extended every month till Dec . So no worry
thumb_up Recommended (0)
Imran Sep 27, 2023 06:40am
Extension is desired
thumb_up Recommended (0)
Tariq Qurashi Sep 28, 2023 11:06am
Given the computer issues the FBR system has had, an extension is probably a good idea.
thumb_up Recommended (0)
Truth Sep 28, 2023 10:15pm
Deadline should be extended. The tax heading codes written in Malumat section for Profit on Debt is not there in IRIS 2.0 System issues have just been resolved. Now I have 2 days and my family OT returns need to be filed
thumb_up Recommended (0)
saqib baig Sep 29, 2023 01:44am
extill whole july 2023 is appropiate suggestion,and it is in favour of more revenue collection and filers record thanks.
thumb_up Recommended (0)
Abdul Qayyum Sep 30, 2023 08:43am
The date must be extended as many problems in collecting statements even for a salried person&in other eg if u have some rental property ie is government corporation&they instead of multiple intimations not provide statement, then from both sides person suffers.thanks
thumb_up Recommended (0)
Chaudhary Zafar Iqbal Sep 30, 2023 11:43am
Due to new Iris version and to increase the Filer last date should be extended upto October 31, 2023.
thumb_up Recommended (0)
MUHAMMAD SHAFIQUE CH Sep 30, 2023 04:16pm
Please extend the Tax Return Date 31 October 2023 over all all Pakistan business community is trouble situation kindly extend the date
thumb_up Recommended (0)