Islamabad — The Federal Board of Revenue (FBR) has officially announced that there will be no further extensions for filing income tax returns for the tax year 2024. The deadline, which was previously extended to October 31, is set to remain unchanged.
Surge in Tax Returns Filed
As of the end of October, the FBR has received 5.129 million income tax returns, a significant increase of 77.47% compared to the 2.890 million returns filed during the same period last year. This upward trend indicates a strong response from taxpayers, with the FBR expecting to surpass last year’s total of 6.675 million returns by the end of the tax year.
Key Statistics:
- New Filers: Approximately 1.3 million new taxpayers enrolled in the system between July 1, 2023 and October 31.
- Tax Payments: Total tax payments reported with returns reached Rs130.60 billion, marking a 73.80% increase from Rs75.141 billion during the same timeframe last year.
- Nil Filers: Out of the total returns submitted, 1.994 million were nil returns, constituting 39% of all filings. This compares to 1.01 million nil returns, or 35%, in the same period last year.
Understanding Nil Filers
Nil returns are submitted by individuals or entities that either did not earn any taxable income during the year or choose to file to take advantage of lower tax rates associated with being on the Active Taxpayers List. In the previous tax year, 55% of total returns filed were nil returns.
Implications
The significant rise in nil filers raises concerns about the nature of the tax base, as more individuals may be filing returns without actual taxable income. While the increase in overall returns is a positive sign for tax compliance, it highlights the need for ongoing efforts to ensure a fair tax system that effectively captures taxable income.
