FBR Likely to Extend Income Tax Return Filing Deadline for 2025

The Federal Board of Revenue is preparing to extend the deadline for filing income tax returns for Tax Year 2025. According to reliable sources. The date will move from September 30 to October 14, and the official notification is expected to be released at midnight. The extension aims to provide relief to millions of taxpayers facing technical issues and last-minute hurdles.

So far, around 3.6 million taxpayers have filed their returns. But the FBR has set an ambitious target of 10 million filers this year. In comparison, 7.6 million people submitted their tax returns in the last fiscal year. Officials have clarified that the target is not part of any International Monetary Fund requirement. But rather an internal benchmark designed to boost compliance and widen the tax net.

This decision comes after repeated appeals from tax professionals, business associations, and legal representatives. They have pointed out technical glitches in the online filing system, slow internet connectivity, and widespread disruptions caused by heavy rains and flooding in parts of the country. These challenges have made it harder for people to submit their documents on time.

A letter from the Rawalpindi Islamabad Tax Bar Association also urged the government to extend the deadline further. It argued that return forms were issued very late, leaving taxpayers with little time to complete their filings. The letter also highlighted repeated breakdowns in the IRIS system. Which caused data loss and confusion just days before the deadline. In addition, unexpected changes such as the introduction and sudden removal of new columns in the forms created further problems for filers.

The association requested that the deadline be moved to at least December 31, 2025, to ensure compliance and reduce unnecessary pressure on taxpayers. It noted that floods, cash flow problems, and unstable online systems have already made this year more difficult than usual. Many filers fear penalties despite having paid advance and withholding taxes in time.

Meanwhile, the FBR faces internal challenges linked to its IT operations. Differences between FBR and PRAL, the company managing its systems, combined with incomplete upgrades, have raised concerns about the reliability of online services. Authorities are planning to close PRAL by the end of 2025, which has added to uncertainty.

Despite these issues, the expected two-week extension is being welcomed as a small but necessary step to improve compliance. Experts believe that while this relief is important, a longer extension would help taxpayers prepare accurate returns and build trust in the system. For now, taxpayers are advised to make use of the additional time and avoid delays.

For more background on Pakistan’s taxation system, visit Wikipedia. Updates on this development can also be tracked on Dawn and BBC.