HCSTSI President urges to extend last date for filing tax returns

HYDERABAD: President Hyderabad Chamber of Small Traders & Small Industry Muhammad Saleem Memon has urged the Federal Minister for Finance & Revenue and the Chairman Federal Board of Revenue (FBR) to extend the last date for filing Income Tax Returns for Tax Year 2026 by at least one month, up to October 31, 2026.

He said the extension would provide taxpayers, the business community and tax consultants with sufficient time to address the difficulties arising from the new return forms, additional information and disclosure requirements, as well as technical issues being faced on the IRIS portal, and to ensure timely tax compliance.

Saleem Memon stated that the process of filing income tax returns this year has become more complicated compared with previous years. The final electronic return forms for Tax Year 2026 were notified on September 2, 2026, leaving taxpayers and their tax consultants very limited time to understand the final forms, compile the required information and documents, review financial records, reconcile Wealth Statements with the returns and file accurate returns.

He said that Rule 34A of the Income Tax Rules provides a prescribed procedure and timeline for the preparation, review and finalization of return forms, under which the final return forms are required to be available on the IRIS portal by January 31. In such circumstances, when the final return forms become available close to the end of the filing period instead of within the prescribed timeframe, expecting taxpayers to complete full, accurate and verifiable returns in accordance with the revised requirements within the normal deadline amounts to overlooking the practical difficulties faced by them.

The HCSTSI President said that the Tax Year 2026 return contains increased information and disclosure requirements, due to which traders, business persons, SMEs and other taxpayers require additional time to properly compile, review and verify information relating to their financial affairs, assets, income, expenditures and Wealth Statements. According to the FBR system, proper reconciliation of the Wealth Statement is essential for successful completion of the return. Therefore, merely setting a filing deadline is not sufficient; an effective and workable filing system along with adequate time must also be provided.

Saleem Memon said that taxpayers and tax consultants were also reporting technical and operational difficulties on the IRIS portal. Login problems, error messages at different stages, return validation issues and difficulties relating to Wealth Statement reconciliation were preventing a number of taxpayers from completing and submitting their returns on time despite their efforts. In such circumstances, strict enforcement of the existing September 30 deadline could subject taxpayers to unnecessary pressure and potential penalties.

He said that the Government’s objectives of broadening the tax base, improving documentation and introducing a digital tax system could only be achieved when taxpayers were provided with an effective system, clear requirements and adequate time for compliance. Rather than encouraging taxpayers to rush into filing incomplete or inaccurate returns, it would be in the Government’s interest to provide sufficient time for them to submit complete, accurate and verifiable information, enabling the FBR to obtain higher-quality and more reliable tax data.

Muhammad Saleem Memon said that the demand for an extension in the Tax Year 2026 return filing deadline was not intended to avoid tax payment or any statutory responsibility, but to ensure accurate, transparent and voluntary tax compliance. He said that providing reasonable additional time would enable taxpayers to submit their returns with greater accuracy, reducing their difficulties while also promoting confidence in the tax system and encouraging a stronger culture of compliance.

He urged the Federal Minister for Finance & Revenue and the Chairman FBR to extend the last date for filing Income Tax Returns for Tax Year 2026 by at least one month and fix it at October 31, 2026, and ensure that taxpayers filing their returns within the extended period are not subjected to any unnecessary penalty, surcharge or other adverse consequences solely on account of late filing.

Copyright Business Recorder, 2026