FBR extends income tax filing deadline after ruling out any relaxation

ISLAMABAD: In a now familiar turn of events, the Federal Board of Revenue (FBR) has once again extended the deadline for filing income tax returns, despite having ruled out any relaxation just a day earlier.

On Monday, the authority had issued a strict statement declaring September 30 as the final date for filing returns for the 2025 tax year, dismissing talk of an extension as “baseless rumours.” It even posted reminders on its official X (formerly Twitter) account, warning taxpayers of penalties if they failed to meet the deadline.

But less than 24 hours later, the FBR made a U-turn. On Tuesday, it announced that the deadline has now been pushed forward by 15 days, giving taxpayers until October 15 to submit their returns.

Extension after repeated denials

According to the notification, the extension has been granted under Section 214A of the Income Tax Ordinance, 2001, following requests from trade bodies, tax bar associations and the general public.

“The decision has been made in view of the requests from various stakeholders, including taxpayers themselves,” the FBR said in its statement.

The change has sparked mixed reactions. For many, the move is unsurprising as the FBR has developed a track record of granting last-minute extensions almost every year, despite publicly ruling them out.

Technical issues and complaints

This year’s filing season has been particularly difficult for taxpayers. The FBR recently rolled out changes to its IRIS system, including automated data uploading, interactive forms, and a new verification mechanism.

While officials insist the system is “fully functional and operating smoothly,” many taxpayers and accountants reported login failures, repeated error messages, and problems with “receipt value” entries. Even salaried individuals complained of difficulties when trying to file returns online.

Last week, the Hyderabad Chamber of Small Traders and Small Industry had urged the government to extend the deadline by up to 48 days, pointing to recent floods in Punjab, Sindh and Khyber Pakhtunkhwa as well as glitches in the tax portal.

Earlier warnings now watered down

On Monday, the FBR had cautioned taxpayers that failing to file by September 30 would result in late-filer status and penalties. It also clarified that only individual extensions in cases of hardship would be considered, rejecting speculation of a blanket extension.

The new October 15 deadline gives taxpayers more time, but whether it will be final remains to be seen, as past trends show the possibility of another last-minute shift.