The Federal Board of Revenue has set September 30, 2026 as the deadline for income tax returns for tax year 2026, which covers income earned from July 1, 2025 to June 30, 2026. The deadline applies to salaried individuals, business owners, freelancers and associations of persons (AOPs). Companies with a June year-end have until December 31, 2026. No general extension had been announced as of September 21.
Why filing on time matters
Filing keeps you on the Active Taxpayer List. Filers pay far lower withholding tax than non-filers on property and vehicle purchases, bank profit and other transactions, and filers aren't charged withholding tax on cash withdrawals.
Penalties for filing late
- The penalty is the higher of Rs 1,000 a day or 0.1% of tax payable a day.
- The minimum is Rs 10,000 for mainly salaried individuals and Rs 50,000 for others.
- It's reduced by 75%, 50% or 25% if you file within one, two or three months of the deadline.
- Late filers also lose Active Taxpayer List status until they file, which raises withholding tax on their transactions.
If you need more time
You can apply for your own extension of up to 15 days, but only before September 30. Don't count on a general extension: the FBR has said it wants the September date treated as final, and extensions, when they have come, have been announced at the last minute.
Check your salary tax before you file
Tax year 2026 uses the Finance Act 2025 slabs, including a 9% surcharge on tax for salaried incomes above Rs 10 million. For a salary of Rs 300,000 a month:
Annual taxable income
Rs 300,000 × 12 + Rs 0equalsRs 3,600,000
Slab tax (Tax Year 2026 (July 2025 to June 2026))
Rs 346,000 + 30% × (Rs 3,600,000 − Rs 3,200,000)equalsRs 466,000
Per month
Rs 466,000 ÷ 12equalsRs 38,833
Tip: File on IRIS or the Tax Asaan app well before the last few days, when the system is slowest. Even with no tax payable, filing a return keeps your filer status.
Sources
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