Being a late filer results in penalties and increased tax rates. This article talks about late filers and how this status can affect them.

Who is a Late Filer?

Earlier, the FBR had only two categories: Filers and non-filers. The new Finance Bill 2024 announced a new category of late filer. This is done to increase the tax bracket.  To avoid falling into this new late filer status, individuals must file their taxes within the specified time.

Tax Implications for Late Filers

Higher rates and penalties apply to late filers than to normal filers. For instance, a late filer will pay an 8% tax on properties worth more than 100 million for property transactions. A normal filer will pay a tax rate of 4% for the same property. Moreover, for late filers, there is a 15 percent capital gains tax on immovable property (bought on or after July 1, 2024), irrespective of the holding period.

Active taxpayer list status requires Late Filers to pay penalties. The later filer penalty challan is Rs 1000 for individuals a, Rs 10,000 for Associations of Persons (AOPs), and Rs 20,000 for companies. Late filers also get penalized Rs. 1,000 daily if they fail to file their tax returns on time.

How to File Taxes as a Late Filer

Log in to the IRIS portal if you want to file taxes online as a late filer. Log in to your account and use the option to submit your income tax returns. So, you’ll have to fill out the late filer form and enter your income, deductions, and tax information. To learn more about how to become a filer, click here.

Sidekick Can Help Late Filers

Sidekick’s dedicated team of tax professionals is here to help you if you’re a Late Filer. By doing this, we provide comprehensive assistance and guidance in filing your tax return and ensuring every form is filled out per FBR regulations. We know how to minimize penalties and get you where you need to be so that you don’t end up with more legal matters.

Sidekick will guide you in managing FBR penalties, calculating dues, and filing late FBR Challan payments. We ensure you are always on top of every requirement to avoid trouble with late filer tax returns.

When will Your Status Change From Late Filer to Filer?

If you have filed your taxes by the due date which is 31st of October, your status will be changed to a filer once the due date is over. This means your status will be changed to a filer on 1 November 2024. However, if you still fail to file your taxes on time. You will then have to pay a late surcharge challan and then your status will be a late filer.

Conclusion

Late filer tax rates are much higher as compared to filers. Failing to submit returns on time will result in these consequences. Sidekick’s expert services can help you complete and file your taxes easily, help you be compliant, and avoid the penalties of being a late filer.