Miss Sept 30 tax deadline, face penalty up to Rs25,000

September 29, 2026 (MLN): Taxpayers who fail to file their income tax returns by September 30 will face significantly higher penalties from October 1, as the Federal Board of Revenue (FBR) moves to discontinue the late-filer category, according to FBR sources.

Under the revised regime, taxpayers who miss the September 30 deadline will be treated as non-filers from October 1 and will be subject to the higher penalties applicable to non-compliant taxpayers, the sources said.

Individuals who fail to file their income tax returns will face a penalty of up to PKR25,000, compared with the existing penalty of PKR1,000, according to the sources.

For associations of persons (AOPs), the penalty will rise to PKR50,000 from PKR10,000, while companies failing to file their returns will face a penalty of PKR100,000, up from the existing PKR20,000.

The sources said the change means that taxpayers filing their returns after September 30 will no longer benefit from the lower penalty applicable to late filers.

September 30 deadline

The September 30 deadline is also applicable to businesses required to complete their sales tax and income tax registration, according to the FBR sources.

The revenue authority has been urging businesses and individuals to complete their registration and tax filing requirements before the deadline to avoid the higher financial consequences that will apply from October 1.

The shift comes as the government seeks to improve tax compliance and bring a larger number of individuals and businesses into the formal tax system.

Asan Tax Scheme carries separate penalties

Taxpayers covered under the government's Asan Tax Scheme will also face progressively higher penalties if they fail to submit their returns within the prescribed period, according to FBR sources.

Under the penalty structure, a taxpayer filing a return during the first month after the deadline will face a PKR10,000 penalty.

The penalty will rise to PKR25,000 if the return is filed during the second month following the deadline, while taxpayers filing during the third month will face a PKR50,000 penalty.

The progressively higher penalties are intended to encourage taxpayers to meet their filing obligations within the prescribed period rather than delay compliance.

With the September 30 deadline approaching, taxpayers who have yet to file their returns are being advised to complete the process before the deadline to avoid the substantially higher penalties that will apply from October 1.

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