Heavier Penalty for Non-Filing of Return

Heavier Penalty for Non-Filing of Return via Section 182: The existing penalty specified for non-filing of return of income has been enhanced. The comparison of such changes is elaborated in below table:

Penalty equal to higher of: 0.1% of the tax payable for each day of default, or Rs. 1,000 for each day of default.

Minimum Penalty:

For Salaried class (at least 75% of the income is from salary), Rs. 10,000, and In case of others, Rs. 50,000.

Provided further that in any case, maximum penalty shall not exceed 200% of tax payable.

Provided also that the amount of penalty shall be reduced by 75%, 50% and 25% if the return is filed within one, two and three months respectively after the due date or extended due date of filing of return as prescribed under the law.

Explanation- For the purposes of this entry, it is declared that the Expression “tax payable” means tax chargeable on the taxable income on the basis of assessment made or treated to have been made under section 120, 121, 122 or 122D.

Certain amendments through third amendment ordinance and this Ordinance shall be called the Tax Laws (Third Amendment) Ordinance, 2021.

For more information on FBR’s new regulations / circulars/ SROs/ amendments in taxation laws in Pakistan please visit https://www.fbr.gov.pk/

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