HCSTSI urges FBR to extend return filing deadline by 48 days

HYDERABAD: President Hyderabad Chamber of Small Traders & Small Industry (HCSTSI), Muhammad Saleem Memon has called upon the federal minister for Finance and Revenue and the chairman of the Federal Board of Revenue (FBR) to grant at least a 48-day extension in the deadline for filing income tax returns. He stressed that this relief is essential to facilitate taxpayers and protect them from unnecessary penalties and hardships.

President Saleem Memon stated that millions of taxpayers across the country are currently facing two major challenges. Firstly, the FBR this year introduced multiple new changes in the IRIS tax return filing system, including automated data uploading, interactive forms, and a new verification mechanism. However, the system has not yet become fully functional.

Taxpayers and accountants are experiencing login problems, repeated error messages, and unclear issues such as “receipt value” errors. Salaried individuals and traders alike have complained that despite days of effort, they remain unable to complete their returns. Strict adherence to the current deadline, under these circumstances, would unjustly penalize thousands of people.

He further emphasised that the devastating flood situation has added to the crisis. Dozens of districts across Khyber Pakhtunkhwa, Punjab, and Sindh have been severely affected by torrential rains and flash floods, destroying hundreds of thousands of houses and killing thousands of livestock. Standing crops and thousands of acres of agricultural land have been washed away, while numerous bridges and hundreds of kilometers of roads have been damaged, paralyzing the transportation network. These challenges have also impacted urban centers, disrupting the supply of essential goods and severely hampering business activities.

Additionally, the suspension of electricity, internet, and banking services in many affected regions has deprived both traders and salaried individuals of timely access to their financial records and accountants, making it nearly impossible to complete tax filing within the given timeframe. Expecting compliance under such extraordinary conditions, he argued, is unrealistic and unfair.

Referring to the law, President Saleem Memon pointed out that under Section 118(3) of the Income Tax Ordinance 2001, tax returns must be duly notified on time. However, this year, the income tax return was notified only on 18th August 2025, with a delay of 48 days. Therefore, he asserted, taxpayers are legally entitled to a corresponding 48-day extension. Moreover, as per Rule 34A(e) of the Income Tax Rules, final return forms must be available on the IRIS portal by 31st January each year, a requirement the FBR has failed to meet. In such circumstances, maintaining 30th September as the final deadline is neither practical nor legally justified.

He urged the government to immediately announce an extension in the filing deadline while also waiving penalties and late surcharges for taxpayers in flood-affected districts.

HCSTSI President Saleem Memon added that such a step would not only provide much-needed relief to traders and the general public but would also strengthen trust between the government and taxpayers, ultimately encouraging higher compliance with the tax system.

Copyright Business Recorder, 2025