ISLAMABAD — The deadline for filing income tax returns for Tax Year 2026 expired on Wednesday, September 30, with the Federal Board of Revenue (FBR) weighing significantly higher penalties for taxpayers who miss the cut-off.
According to sources, the proposed penalties represent a sharp escalation from existing rates, signalling the revenue authority’s intent to tighten compliance as filing numbers climb.
Proposed Penalty Increases
- Individuals: Late-filing penalty may rise from Rs1,000 to Rs25,000.
- Association of Persons (AOP): Fine may increase from Rs10,000 to Rs50,000.
- Companies: Penalty may jump from Rs20,000 to Rs100,000.
Filing Numbers Rise Sharply Year-on-Year
Available data shows a substantial increase in compliance compared with last year. A total of 3,516,265 returns were filed in the previous tax year, while the figure has climbed to 4,876,384 returns this year.
Tax collected through this year’s returns has reached Rs19.217 billion, according to the data.
Breakdown by Taxpayer Category
- Salaried taxpayers: More than 1.623 million returns filed, contributing over Rs2.82 billion in taxes.
- Non-salaried taxpayers: More than 3.206 million returns filed, generating Rs13.43 billion.
- Associations of persons: Contributed Rs1.41 billion.
- Companies: Paid Rs1.54 billion in taxes.
Small Shopkeepers Scheme
Under the Small Shopkeepers Scheme, 644 returns have been filed so far, generating more than Rs48.2 million in tax revenue.
FBR Warns of Legal Action
The FBR has warned that taxpayers who fail to meet the deadline may face penalties under the law. The board’s official tax schedule lists September 30 as the due date for individuals and associations of persons.
With the deadline now lapsed, attention turns to whether the proposed penalty hikes will be enforced and how many additional returns the FBR expects in the coming days.
