Pakistan Tax Bar Association seeks extension of return filing deadline

The Pakistan Tax Bar Association has formally requested the Ministry of Finance to extend the deadline for filing income tax returns for the tax year 2025, citing widespread disruptions caused by devastating floods and ongoing technical issues with the Federal Board of Revenue’s (FBR) IRIS filing system.

In a letter addressed to Finance Minister Senator Muhammad Aurangzeb, the association urged the government to move the current filing deadline from Sept. 30 to Oct. 31, with the possibility of a further extension if conditions do not improve.

“This year, Pakistan has been hit by climate change calamities, which have led to torrential rains and devastating floods, affecting hundreds of thousands of residents across Khyber Pakhtunkhwa, Punjab, and Sindh,” the association stated. “Given the scale of the disaster, it is not possible for many taxpayers to file their returns within the specified deadline.”

The association also cited significant difficulties with the IRIS e-filing portal, noting persistent glitches and periods when the system was completely inoperable. Although the FBR addressed some issues by mid-August, others remain unresolved, posing additional challenges for taxpayers attempting to comply with legal requirements.

Under Section 118 of the Income Tax Ordinance, 2001, taxpayers are entitled to a 90-day window following the end of the financial year to submit their returns. However, the association argued that the technical hurdles and natural disasters have made compliance within that window unfeasible.

“We are hopeful that our request for extension will be considered in the interest of taxpayers, allowing them to file without facing penalties,” the association added.