ISLAMABAD: As the Federal Board of Revenue (FBR) has reported an overwhelming response, with tax returns filed reaching 5.181 million by Sept 29, trade bodies and professionals are seeking an extension of the deadline, citing delays in the issuance of return forms and heavy online traffic as major hurdles in timely filing.

The statutory deadline for filing tax returns is Sept 30 each year. However, historically, the date has been extended two to three times, often until the end of October. In recent years, extensions were granted with only minor penalties, but the last budget has substantially increased these charges, making compliance costlier for late filers.

The demands for extension in the deadline have been raised by the Federation of Pakistan Chambers of Commerce and Industry (FPCCI) and the Islamabad Chamber of Commerce and Industry (ICCI), as well as professionals.

5.18m returns filed by Sept 29, up 45.8pc from tax year 2025

Meanwhile, the Karachi Tax Bar Association (KTBA) has submitted a five-page letter to the Member Inland Revenue (operations), highlighting several issues, including delays in the issuance of draft notifications and persistent technical glitches in the IRIS portal, which hinder the smooth filing of tax returns.

Return filing details

The FBR figures reveal that overall tax return filings rose from 3.553 million in tax year 2025 to 5.181m in TY26 until Sept 29, an increase of 45.8 per cent.

Non-salaried individuals’ return filings surged from 2.160m in TY25 to 3.389m in TY26, an increase of 56.9pc. Salaried individuals’ returns climbed from 1.350m in TY25 to 1.740m in TY26, a growth of 28.9pc.

The breakdown showed that association of persons (AOP) filers grew from 33,186 in TY25 to 44,924 in TY26, an increase of 35.3pc. Contrary to this, company returns declined from 9,523 to 6,428, a fall of 32.5pc.

The compliance data show that returns increased substantially compared to the previous year, with the strongest growth recorded among non-salaried individuals, while company filings saw a notable contraction. The last date for company returns is December 31.

Penalties for late filing

In Finance Act 2026-27, the government has substantially increased penalties for late filing of income tax returns, restoration to the active taxpayers list and deficiencies in document accessibility and formatting.

Under the Act, the penalty for returning to the active taxpayers list (ATL) has been raised fivefold for companies to Rs100,000 from Rs20,000, while it was increased to Rs50,000 for associations of persons from Rs10,000 and Rs25,000 for individuals from Rs1,000.

The new penalty rates will apply from the current fiscal year, effective from July 1.

The KTBA has urgently requested remedial measures for the IRIS Income Tax Return Form for TY26. The letter stresses that taxpayers were given inadequate time to file returns, as the final form was notified only on Sept 2, leaving barely a month before the statutory deadline. Persistent downtime and instability of the IRIS portal have further obstructed timely filing.

It further highlighted disproportionate disclosure requirements, including detailed information on vehicles, immovable properties, bank accounts, shareholders and partners, which impose heavy compliance burdens, especially on large taxpayers.

Published in Dawn, September 30th, 2026