Extension in return filing: FTO for disposal of all pending applications in 3 days

ISLAMABAD: Federal Tax Ombudsman (FTO) has strictly directed Federal Board of Revenue (FBR) Member-Inland Revenue (Operations) to ensure disposal of all pending applications of taxpayers for extension in return filing within three days’ period.

According to an order issued by the FTO on Tuesday, the delay in disposing of the pending applications for extension and lapse in informing about extension granting as indicated above constitute maladministration in terms of section 2(3)(ii) of the FTO, Ordinance, 2000.

The FBR must direct the Member-IR (Operations) to direct the concerned commissioners of filed formation to dispose of all pending extension applications providing reasonable time within three days and direct the concerned commissioners to provide reasonable time to the taxpayers who received extension intimation after expiry of the extended date, FTO directed the FBR.

The complainant lodged a complaint against non-processing of online applications filed for seeking extension in filing annual income tax return for tax year 2025. The complainant further stated that several taxpayers, despite timely filing their applications for extension through the Iris portal, have not been granted the requisite permission.

Regrettably, these applications are still lying unattended in the Outbox of the IRIS system.

The complainant further added that this unwarranted delay on the part of the FBR in processing legitimate online applications constitutes not only an administrative lapse but also an infringement upon the fundamental legal rights of taxpayers under the Income Tax Ordinance, 2001.

The system’s failure to respond to applications duly filed within the prescribed timeframe is causing unnecessary hardship, creating an impression of procedural injustice, and casting doubt on the fair implementation of tax laws in the country.

Perusal of record shows that the complainant came up before this forum to seek direction to process the pending applications filed for seeking extension filed for tax year 2025. Although, on intervention of this office, the FBR started disposing of the pending extension applications but the taxpayers were informed of extension two days after expiry of the extended date, FTO order added.

Copyright Business Recorder, 2025