FBR sets Sept 30 tax return deadline

In its latest public awareness message, the tax authority highlighted the financial advantages available to active taxpayers compared with non-filers.

LAHORE: The Federal Board of Revenue (FBR) has urged taxpayers to file their income tax returns for Tax Year 2026 by September 30, warning that timely compliance can help citizens benefit from lower withholding tax rates on several major financial transactions.

In its latest public awareness message, the tax authority highlighted the financial advantages available to active taxpayers compared with non-filers. According to the FBR, filers can face significantly lower tax deductions on transactions involving vehicles, property, investments and bank profits.

The FBR advisory states that filers are not subject to withholding tax on cash withdrawals from banks under the applicable provisions, while tax on the purchase of vehicles and property transactions can be substantially lower than the rates applicable to non-filers.

Taxpayers who maintain their active status can also benefit from reduced withholding tax on National Savings Schemes and bank profit or interest. The FBR further highlighted taxpayers’ rights to claim adjustment or refunds where excess tax has been paid or deducted.

The tax authority has encouraged citizens to use its digital platforms to submit their returns. Taxpayers can file online through the FBR’s official system or use the Tax Asaan mobile application, while assistance is also available through FBR facilitation centres and tax offices.

The FBR has also stressed that increasing integration of financial information from banks, property transactions, vehicle registrations and investment institutions has strengthened its ability to identify taxpayers who may not be meeting their tax obligations.

The authority has therefore advised citizens to ensure their returns are submitted within the prescribed deadline rather than waiting until the final days, when increased online traffic could cause delays.

Filing an income tax return also enables eligible taxpayers to maintain Active Taxpayer Status, which can result in lower withholding tax rates on various transactions and provide access to other tax-related benefits.

With the September 30 deadline approaching, the FBR has called on taxpayers to complete their returns in time and avoid potential complications associated with late filing or non-compliance.