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MTBA demands FBR to extend last date for filing of income tax returns

MTBA demands FBR to extend last date for filing of income tax returns

MULTAN: Multan Tax Bar Association (MTBA) has demanded Federal Board of Revenue to extend last date for filing income tax return for at least three months as provided under the law.

The Multan Tax Bar Association has written letter to chairman of Federal Board of Revenue (FBR) on Monday stated that delay in issuance of income tax return form for tax year 2020 for around two and a half months and other matters pertaining to updating taxpayers’ profile would make it difficult for taxpayers as well as tax practitioners to meet deadline of September 30, 2020.

The MTBA, which is representative of all Multan tax bar association, has taken up the matter with the FBR for extension in time for filing of income tax returns for tax year 2020.“All these written as well as verbal requests are revolving around a single point issue i.e. late finalization and publication of income tax return for tax year 2020 in respect of non-corporate/corporate cases of individual, AOPs and certain companies, which have special year.”

Former MTBA President Muhammad Imran Ghazi explained the legal position regarding time provided under the income tax law. He said that the FBR finalize / introduced form of income tax return for non-corporate / corporate of individual, AOPs and certain companies having special year including wealth statement and wealth reconciliation statement through FBR notification SRO 822(I)/2020 dated September 8, 2020. Moreover, a simplified return of income for retailers/traders has also been introduced through SRO 855(I)/2020 dated September 17, 2020.

He said that the time and date for filing of income tax return along with wealth statement and wealth reconciliation statement by every individual/AOP, is 90 days from the end of financial year i.e. September 30 every year as envisaged under sub-section (2) and (3) of Section 118 of the Income Tax Ordinance, 2001 read with rule 34 of the Income Tax Rules, 2002.

Moreover, certain companies, which have special year of filing are also required to file their returns of income by September 30 every year meaning thereby that they are legally entitled to avail nine months’ time, whereas after considering the aforesaid notifications of return of income for tax year 2020, the FBR has given only 22 and 13 days’ time for filing of returns which is absolutely contrary to the aforesaid legal provisions of the law.

Multan Tax Bar Association has also drawn the attention towards an important amendment introduced through Finance Act, 2020 regarding update taxpayer profile under Section 114A of the Income Tax Ordinance, 2001.

Multan Tax Bar Association has demanded FBR to extend the last date for filing of income tax return for at least three months.