Taxpayers who fail to file their income tax returns by Sept. 30 will face significantly higher penalties from Oct. 1, according to Federal Board of Revenue sources.
The late-filer category ceases to apply from Oct. 1, leaving taxpayers who miss the deadline classified as non-filers, the sources said. Under the revised penalty regime, individuals who fail to file income tax returns will face a penalty of up to Rs. 25,000, compared with the existing Rs. 1,000.
For associations of persons, the penalty will increase to Rs. 50,000 from Rs. 10,000, while companies that fail to file returns will face a penalty of Rs. 100,000, up from Rs. 20,000, the sources added.
Taxpayers covered by the government’s Asan Tax Scheme will also face progressively higher penalties if they miss the prescribed return-filing deadline, according to FBR sources.
A taxpayer filing a return during the first month after the deadline would face a Rs. 10,000 penalty, while the penalty would rise to Rs. 25,000 during the second month, the sources said. The penalty would increase further to Rs. 50,000 for returns filed during the third month after the deadline, they said.
The FBR has been encouraging businesses and individuals to complete their tax registration and filing requirements before the Sept. 30 deadline to avoid the higher penalties applicable from Oct. 1.