Why You Should File Your Income Tax Return on Time: Avoiding the Consequences of Non-Filing in Pakistan

The Federal Board of Revenue (FBR) has set specific deadlines for filing income tax returns in Pakistan. For the Tax Year 2024, the initial deadline for salaried individuals, businesses, and associations of persons (AOPs) is September 30, 2024. Companies and other corporate entities have until December 31, 2024. While the FBR has extended these deadlines in the past, relying on extensions is risky. It’s crucial to understand why filing on time is important and the consequences of failing to do so.

Why Filing On Time Matters

Although the FBR has been lenient with deadline extensions in recent years, it’s not something taxpayers should count on. Delaying your tax return can lead to significant financial and legal consequences:

1. Hefty Penalties and Fines

Non-filers face daily accumulating penalties, which can quickly add up to substantial amounts, putting a strain on your finances.

2. Increased Tax Rates

Non-filers may be subject to double the standard tax rates on transactions like property purchases, banking, and vehicle registrations, adding a significant financial burden.

3. Restrictions on Foreign Travel

Non-filers risk being barred from international travel, as the government has the authority to revoke or deny passports for those who fail to file on time.

4. Closure of Mobile SIMs and Bank Account Restrictions

The government may suspend or close mobile SIM cards and impose higher withholding taxes on banking transactions for non-filers, limiting your financial flexibility.

5. Legal Action and Asset Seizure

Persistent non-compliance can lead to legal action, including asset seizures and potential imprisonment, with long-lasting repercussions.

How AMY Consulting Can Help?

At AMY Consulting, we offer expert tax filing services to ensure you stay compliant and avoid the penalties of non-filing. Let us help you file your return on time and with ease.