The deadline for filing your taxes is approaching fast. Filing taxes before the deadline is very important as it helps you avoid fines and penalties. However, if you need an extension to file your return, the FBR can provide it. Requesting for an extension can be challenging. This article will help you file for the extension.

Reasons to Request a Tax Filing Extension

Different situations may require a taxpayer to file an extension for tax returns in Pakistan. Some reasons that filers could face include missing some of their financial information, personal or business issues they could not expect earlier, and other tax issues.

For instance, businesses with outstanding audit working papers or owners with personal problems like diseases. One must provide a valid reason for the extension when applying, as the FBR requires valid reasoning.

Here’s How You File For an Extension Request

Filing an extension in time for filing tax returns through the FBR’s portal is simple. Here’s how to do it:

Step 1: Log into Your Iris Account 

Go to the FBR website and log in to your Iris account for all your tax-related stuff. Submitting your IRIS extension online request begins with this.

Step 2: Submit a Request to the Commissioner 

After logging in, go to the section on filing tax returns. Here, you’ll find the option to submit an extension request to your relevant commissioner. Provide a valid reason for needing more time, such as incomplete financial records or any other reason. The FBR usually extends a 15-day extension, but that must be justified.

Step 3: Start the Filing Process 

Once your request for the extension is sent, you can begin working on your tax return. Make sure your relevant commissioner gives the approval for your extension. If the approval is not granted then your extension request can become void. You can either call or visit the RTO office to make sure that your extension request is approved. During the time of your extension approval, start your income tax filing process and collect all your required documents.

Step 4: Submit Forms and Await Confirmation

After completing your forms, Submit them through the Iris portal and await confirmation.

Common Mistakes to Avoid: 

Make sure that your wealth statement matches your income and expenses. Any differences could lead to further delays and penalties.

Tax Penalties for Late Filers without Extensions

Failing to file your taxes can result in fines and penalties. You will lose your active tax payer status if you fail to file your taxes on time.

For individuals: Rs. 1000 for AOPs: Rs. 10,000; and for companies: Rs. 20,000. For further delay, a Rs. 1,000 daily fine is also applicable. File your taxes on time to avoid penalties worsening, so you have extra time to submit accurate returns.

How Sidekick Can Help You with Tax Filing Extensions

Sidekick is a leading tax consulting firm in Pakistan that handles Individual and business tax returns most efficiently. Ask for extensions when you can’t meet the tax filing deadline, and have Sidekick make sure that you submit all the right documentation when your tax filing deadline is around.

We ensure everything is done for you, from preparing and filling out the form for a tax extension request to dealing with the Federal Board of Revenue (FBR) and filing a tax extension request without you having to do anything. We ensure you are FBR compliant and all your taxes are filed before the deadline.

Conclusion

If you file an extension in time for filing tax returns, you can avoid penalties and ensure accurate tax documentation.  Filing an extension gets you some more time to straighten out your finances. To help you manage your taxes hassle-free, Sidekick can provide expert advice on handling all tax deadlines effectively.