Income Tax Return extension expected atleast till 29 October.. Experts Predicts

Income Tax Return extension expected atleast till 29 October … Experts Predicts

LAHORE ( Web News )

Individuals, Association of Persons and Companies (whose year-end fallen at any date between 1.7.20 to 31.12.20), Tax Year 2021 return is required to be filed 30.9.21. However, experts believe that extension is likely to be allowed by the FBR till atleast 29.10.21.

When contacted Mr Asif S Kasbati, PBC Core Committee Member and ICAP Fiscal Laws Committee Member, he explained that extension is likely to be allowed atleast till 29.10.21 owing to 30+ reasons.

Considering Rule 34A(2)(e), (3)&(4) [as per SRO 1185 dated 6.11.20], the FBR/PRAL was supposed to upload Draft return form on IRIS by 15.11.2020 for comments by stakeholders on or before 7.1.21. Moreover, the Final return should have been notified by 31.1.21. Inspite of the same there was delay as the Draft & Final Electronic return form were issued on 11.6.21 & 1.7.21 respectively and return form was uploaded on 1.7.21. The FBR vide SRO 1073 dated 27.8.21 issued Manual / Paper based return Forms. The FBR also uploaded Small & Medium Enterprises (SMEsReturn Forms on IRIS Portal for Tax Year 2021 but not issued SRO so far. Retailer Return Form having Turnover upto Rs 10M has not been issued like last year SRO 885 dated 17.9.2020.

The software of the FBR was hacked on 10.8.21. The website remained non-functional for several days; and thereafter it was restarted partly and still it is not working smoothly and bugsfree. Most of the time, the taxpayers are facing difficulties in preparing tax payment challans. FM Shaukat Tarin even earlier stated that the last date for filing Income Tax Return for the Tax Year 2021 may be extended as an online portal of the FBR remained disturbed in August. As per FM, there are 15M Non-Filers data i.e. 15 million Potential Taxpayers. However, as per Former SA to PM Dr Waqar Masood stated earlier that there are 7.4M expected Non-Filers.

Having stated above, Kasbati expects that maximum 4M returns will be filed for TY 2021 considering their entity’s ATL Analysis containing Number of Tax return filed in TY 2018 at 1.7M, TY 2019 at 2.4M & TY 2020 at 2.9M. As per reliable sources, only 10% returns have been filed as against 4M returns expected to be filed. FBR would not like 90% taxpayers to be non-compliant.

Internet is likely to be working slow from 28.9.21 to 30.9.21 as the taxpayers face this issue on every year; as we understand that IT system issues are still not fully resolved. Annual Sales tax return deadline is also on 30.9.21 which will increase website workload from 28.9.21 to 30.9.21.

The 2 Schemes for Traders, etc have not finalised so far been introduced considering newly introduced sections 99B and 99C about Special Procedures for small traders & shopkeepers; and special procedure for certain person introduced through Finance Act 2019 and applicable from TY 2020 and onward.

KTBA has also raised 14 other issues about E-filing of return. LTBA & Gujranwala Tax Bar Letters dated 21.9.21 & 21.9.21 has applied to FBR for extension respectively. Covid & related issues as covered in detail in the LTBA letter dated 21.9.21.

Chup tazia event on 26.10.20 with related Traffic effects. Eid-e-Miladun Nabi on 30.10.20 and related Traffic disturbances from 28.10.21 to 30.10.21.

It appears that 490+ Market Committees’ Members (having members considering 3,454 FBR & Traders Agreement) are not functioning properly.

Having stated above, in order to avoid any Default Surcharge, Penalty & Notices, Kasbati recommended to submit Income Tax Return for TY 2021 as soon as possible before 30.9.2021. If anyone could not file a return by 30.9.2021 and general extension is not announced, taxpayers, especially companies should submit an online extension application.