FBR Extends Income Tax Return filing deadline to 15th October

Tax Return filing deadline

Good news for millions of taxpayers of the Pakistan, Federal Board of Revenue (FBR) has now officially extended the last date to file income tax returns up to 15th October 2025. It is the latest in a series of last-minute reprieves and just hours after the original deadline to apply, September 30, defusing concerns from thousands of businesses, trade bodies and individuals battling with computer errors or last-minute red tape. This extension will be particularly helpful to all those who have been rushing to beat the deadline for filing tax returns, providing them with an additional critical 15 days, so they do not miss out and get burdened with penalties. 

The announcement, under Section 214A of the Income Tax Ordinance, 2001, reverses a previous FBR statement which categorically ruled out any postponement in income tax due dates. Finally, with the FBR extends Tax deadline, taxpayers living in one of these areas now have until October 15th, 2025, to file their returns for TY 2025. This gesture does not only cut pressure but also highlights that the FBR responds to public opinion by promoting a taxpayer friendly atmosphere. 

 

Why Has the Deadline Extended? 

In the past weeks, calls for an extension of tax return filing deadlines intensified as taxpayers tangled with lackluster economic conditions. Also, with balancing tasks and backend crashes that compelled manual data uploads. Trade associations like PCDMA, tax bar councils, and the public urged the FBR to extend the deadline, citing widespread difficulties. Following which FBR has released a notification with the last date for filing income tax returns, and that was September 30, 2025. Even small issues, given that more than 3.5 million taxpayers had and have been seeking access to the system, resulted in significant amounts of non-compliance. The FBR said that the extension has been given to facilitate and reduce burden of compliance and encourage volunteer filing, which has been a tradition for several years. 

 

Key Income Tax Due Dates to Remember 

It’s important to understand the big picture for income tax due dates to be prepared. Even though the main filing window has been extended, other deadlines are still in effect. Here’s a quick breakdown: 

Taxpayer Category  Original Deadline  Extended Deadline 
Salaried Individuals  30 Sep 2025  15 Oct 2025 
Business Individuals  30 Sep 2025  15 Oct 2025 
AOPs and Companies  30 Sep 2025  15 Oct 2025 

 

 

How to File Your Income Tax Return Before the New Deadline 

Now that the FBR extends tax return deadline has been officially announced, it is time to act. Apart from being a legal requirement, filing your return is also your way of getting refunds and deductions or even lower utility bills under the Active Taxpayer List (ATL) scheme. Here’s a guide to ease the process: 

Step 1: Register or Log In to IRIS 

Go to the FBR website (fbr.gov.pk). Click on register or log in and log in to the IRIS portal. If you are a new user, then fill your NTN registration with CNIC and basic information. 

Step 2: Gather Your Documents 

Collect salary slips, bank statements, property valuations and proof of investment. And don’t forget, the recent elimination of the “estimated market value” column facilitates reporting all types of assets to simplify matters. 

Step 3: Fill and Validate the Form 

Choose the return form you have to file (like Form 114 for salaried individual). Use the auto-fill feature to ensure pre-populated (from your bank and employer) data gets entered correctly. 

Step 4: Review and Submit 

Double check calculations for accuracy. E-sign it with your digital signature or CNIC and submit it by 15th October 2025. You’ll get confirmation in an email. 

 

Pro Tip: If you’re facing technical issues, contact FBR helplines (111-772-772) or visit a regional tax office. Early filing also positions you better for any future incentives, like reduced rates for timely compliers. 

 

Why This Matters for Pakistan’s Economy? 

There’s a reason that income tax return date extension isn’t merely administrative housekeeping, it happens to be an acknowledgment of the digitalization clashing with reality in an economy on the upswing. Pakistan’s low tax-to-GDP ratio of about 10%, is well below regional norms and moves like this are aimed at boosting wider involvement. Through this deadline extension of the submission of income tax returns, FBR is creating a confidence among people and striving to improve the voluntary compliance that has helped Pakistan increase by 20 per cent in last year. 

Still, taxpayers should treat this as a one-time breather, not a new precedent. The future filings are likely to adhere more closely to deadlines as IRIS matures. In the interim, please use this opportunity to learn tax slabs (e.g. 0% up to PKR 600,000, progressive up to 35%) and allowed exemptions for education/health/donation etc. 

 

How can CBM Consultants benefit you? 

An extended date for filing an income tax return enables CBM Consultants to provide better services to clients, workloads are more manageable. Data reconciliation is more accurate, minimizing the potential for errors that may result from system delays. This gives more time to deal with complicated files, apply to garnish any cases and help even more taxpayers which increases client’s confidence and opportunities business. With the additional time given, we provide advisory services, bring in new clients who met missed previous deadlines, and enhance their image as a dependable partner when it comes to tax compliance.  

 

Conclusion 

An extension of the timeline is a taxpayer victory with an eye-opener for proactive planning. As an event on the horizon, you jot down the date of FBR last date of Tax Return 2025. Organize your documents and hit submit confidently. Non-filers face not only penalties, but also exclusion from loans, imports and government handouts. 

How do I Get My Tax Refund From FBR?

Tax Refund from FBR

Freelancing in Pakistan, you might say, is operating a one-person business. While salaried workers have automatic withholdings, you must keep up with your own taxes, track them, deduct them and filing forms. The good news? The government acknowledges you are helping drive up exports and has taken various steps including a lower rate on IT services. But neglect Tax Planning for Freelancers, and you could be audited, fined PKR 40,000 for late filing or even lose ATL status (being an Active Taxpayer), raising the withholding tax deductions on everything from bank withdrawals to property transactions. 

Tax considerations for freelancers start with understanding your income type: local (PKR payments from Pakistani clients) or export (foreign currency from international gigs). As of Tax on freelancers in Pakistan 2025, the Finance Act 2025 has extended exemptions for IT exports have been extended until June 30, 2026; however, slabs for local income have slightly tightened over time to ensure due adherence. With some proper planning, you can reduce your liability by 50 percent or more through deductions and registrations. 

 

What Exactly is a Tax Refund From FBR? 

Tax Refund from FBR means you have paid tax more than your tax liability. This may be due to excessive withheld wages, excess tax payments on business income or input tax credits relating to sales. The processing of such refunds by FBR is aimed at promoting accuracy and reducing financial difficulties. By 2025, thanks to the introduction of a simplified, one-page return form, obtaining your refund has never been easier. Advantages include: -Instant bank transfer-direct from bank utilizing a centralized system, no more wait for receiving the payments. 

Common scenarios for refunds: 

  • Withholding tax refund in Pakistan: If your employer or bank deducted more taxes than you are required to pay. 
  • How to claim income tax refund: Post return adjustments of salaried or non-salaried person/business. 
  • Sales Tax refund FBR: For Manufacturers/Exporters and unutilized input tax. 

 

Types of Tax Refunds You Can Claim 

The FBR handles multiple refund types, each with tailored processes. Here’s a quick overview: 

Refund Type  Who Qualifies?  Key Feature 
Income Tax Refund  Salaried employees, freelancers, businesses with overpayments  Processed via IRIS portal; automatic adjustments possible. 
Withholding Tax Refund Pakistan  Anyone with excess deductions at source (e.g., on salaries, contracts)  Integrated into annual income tax return; claim excess via application. 
Sales Tax Refund FBR  Registered exporters or manufacturers with input tax credits  Filed under Section 66; processed in 45 days via FASTER system. 

 

How to Claim Income Tax Refund in Pakistan 

Filing an Income Tax return is the beginning of the process for a refund, which needs to be requested. Here’s the procedure to claim income tax refund in 2025: 

Step 1: Register or Update Your IRIS Profile. 

 First and foremost, in the test‐booking process is the completion of a short profile registration, which takes less than five minutes. 

Navigate to the FBR’s IRIS portal (iris. fbr. gov.pk).  

If you are a new user, please register using your CNIC/NTN. Current subscribers: Log in and add bank information for direct refunds. 

Pro tip: Check the status of your Active Taxpayer List (ATL) for faster processing and reduced withholding rates. 

Step 2: Make Sure You File an Income Tax Return 

You can download the 2025 simplified form from fbr. gov.pk. 

For those whose are salaried, file Form 114(I). Businesses use relevant schedules. 

If you do this by September 30, 2025, no penalties will be imposed. 

The system auto-calculates any overpayment. 

Step 3: File for Your Income Tax Refund 

After filing a return, you should visit the “Refund” tab in IRIS. 

File a claim that specifies the larger amount (such as, from withholding). 

Include supporting docs like pay slips or ledgers, if applicable. 

To apply online for withholding tax refund in Pakistan, you need to have a reference of amounts that has been deducted from the Form 16A. 

Step 4: Monitor and Get Your Refund 

Check status in IRIS under ‘Refund Status’. 

Once approved, refunds are paid direct to the bank through Centralized Income Tax Refund Office (CITRO) often in weeks! 

In case of any issues, FBR’s video tutorials for return filing/refund are a life saver. 

 

Mastering Tax Refund from FBR Online 

Paperwork queues are a thing of the past. Fbr tax refund online is now 100% computerized through IRIS and FASTER methods. Here’s how to optimize: 

  • Update Everything: Bank IBAN, email-, mobile-recipient-address for notifications. 
  • Double Check Calculations: Use IRIS’s built-in tools to avoid errors.  
  • File Early: Get ahead of the September crush for earlier audits. 
  • Common Pitfall: Slow payments due to incomplete profile, update now! 

Businesses can offset pending refunds against new liabilities directly in the return form. 

 

Sales Tax Refund FBR 

If you’re in manufacturing or exports, Sales Tax refund FBR can recover valuable input taxes. Under Section 66: 

  • Eligibility: Registered persons with excess input over output tax. 
  • Filing: File Annex H through FASTER (faster. fbr. gov.pk) with invoice details. 
  • Timeline: The payout is expected to occur in 45 days. 

Write name, STRN and Bank A/C No in your application. 

This is particularly helpful for exporters who are strapped in cash flow. 

 

Withholding Tax Refund Pakistan 

Withholding tax refund Pakistan is one of the classifications of income tax refunds. Banks, and employers deduct at source but if your final liability is less then claim the difference: 

  • Trace through the monthly statements (Form 16A). 
  • Include in your annual return and follow the steps above for applying income tax. 
  • ATL status of withholdings becomes possibly makes the demand for refund lower. 

 

 

Tax Refund under CBM Consultants Guidance: 

CBM Consultants helps a person or business to get his/her refund from FBR. While filing the returns correctly to fill out and apply a complete income tax refund file, professionals ensure all documents, challans and certificates are properly attached. We also monitor refund status on the FBR online portal, chase tax officials up and reply to any questions or challenges put by FBR. Our experts also recognize all potential refund avenues, such as withholding tax refunds under the domestic laws of Pakistan or sales tax refunds by FBR to make people recover the possible maximum dues. By taking on the technicalities and compliance, CBM Consultants save time, reduce errors, and enable a smoother and faster refund process. 

 

Conclusion 

Getting your tax refund from FBR is not only about the money, but also about holding the system accountable. In 2025, you can easily apply for an Income Tax refund with the help of IRIS or FASTER. Log into your portal, file that return and then just watch the roll in funds. If you get stuck, FBR’s resources are gold.  

Tax Exemption Benefits for NGOs in Pakistan: What You Need to Know

In the dynamic, active world of non-profit Pakistan, the status is critical to strengthen the hand of an organization for it to be able to make a difference. You don’t have to be a learning center, health service provider or community development organization to benefit tax exemption in Pakistan. It can provide substantial financial relief whether it is an entire hospital, school or simply small re-reimbursement claims. For organizations, along with other NGOs (non-governmental organizations), tax exemption isn’t just a box to check in terms of compliance; it’s an important strategic benefit that means more resources go directly to those we are trying to help. In this detailed guide we’ll explain the basics, including how to apply and who qualifies, as well as a rundown of some related benefits such as the FBR Income Tax Exemption list. Let’s dive in. 

 

How is Tax Exemption Beneficial for NGOs? 

Essentially, tax exemption means that an organization is not subject to any income tax or sale tax withholding on its revenue at certain circumstances according to the provisions of section 2(36) A of the Income Tax Ordinance, 2001. For NGOs, this translates to funds raised from charitable activities, such as donations, grants or program fees, being sheltered from taxation, promoting sustainability. 

For example, in Pakistan FBR is responsible for awarding tax exemption via section 2(36) on approved NPOs. Recent amendments in the Finance Act, 2025, have made these rules more specific to avoid misuse and bring in transparency. This progress reflects the commitment of the government to encourage healthy giving while maintaining fiscal probity. 

To NGOs which are with tax exemption, this means a real course that has been opened: on the reduction of costs, greater confidence by donors and the scaling of programs. Just imagine if you can redirect thousands of rupees from tax volta to building schools or giving people clean water and that’s the power of getting it right. 

 

Eligibility Criteria for Tax Exemption for NGOs 

Only a limited number of NGOs are automatically entitled to tax exemption. To be a candidate, your institution or organization should: 

  • Be a non-profit society as per applicable laws, including Societies Registration Act, 1860 or the Securities and Exchange Commission of Pakistan (SECP). 
  • Get certified from PCP for your 2(36) statuses, which is mandatory before you’ll be able to get approval from FBR. 
  • Prove that at least 80% of revenue goes to charity and that there is clear, transparent financial reporting. 
  • Remain an active taxpayer with Federal Board of Revenue on Active Taxpayer List (ATL). 

The 2025 changes to the NPO definition focus on “genuine” operations, excluding organizations with profit-making intentions or have engaged in commercial activities other than what is considered aside from their core missions. If you’re an NGO that works on education, health and nutrition, poverty alleviation or environmental conservation, chances are, you’re quite in the category. 

 

Navigating the Application: 

Tax Exemption by taking prompt actions on the IRIS portal of FBR. Here’s a step-by-step guide: 

  • Registration as an NPO: Register with the FBR’s NPOs Central Registry, maintained with both SECP-registered and provincial entities. 
  • Submit the Tax Exemption Form: You can apply for exemption or continuance, under Section 2(36), using Form 56 (Application for Grant of Exemption or Continuance). This application describes the structure, operations and finances of your organization. Download it from FBR website and e-file it through IRIS. 
  • Wait for the Tax Exemption Certificate: Upon approval the FBR will release a tax exemption certificate which is valid up to one year (then you can get it renewed). This letter serves as an acknowledgement that you are exempt from income tax on the Revenue Letter describes you and entitlement to R.O.I. The letter further serves notice of your withholding agent obligations with respect to payment transactions pertaining to you. Processing time is usually 30 to 60 days, so plan accordingly. 

Pro tip: Hire a tax consultant with experience in NGO filings so you don’t fall into common pitfalls, such as an audit not fully completed. Once approved, end your official communications with a copy of your tax exemption certificate to earn the trust of donors. 

 

Key Benefits of Tax Exemption for NGOs 

Why pursue tax exemption? The perks are transformative: 

Exempt From Income Tax: Entire income out of the trust fund is waived, up to 100% reinvestment. 

Sales and Withholding Tax Exemption: Exemptions on imports for projects and reduced rates on procurement.  

100% Tax Credit (Section 100C): Donations made to certified NGOs give the donors a credit of 20-30 per cent for donations incentivizing giving. 

Customs Duty Exemption: For equipment used in support of humanitarian activities. 

These advantages do more than put a financial lifeline under your organization, they also boost the impact of your NGO in areas where few can reach.  

 

The FBR Income Tax Exemption List 

The list, which is revised annually by the Statutory Regulatory Orders (SRO) and Finance bill contains more than 50 companies for the year 2025-26 like: 

 

Entity Category  Examples  Exemption Scope 
Government Bodies  FBR Foundation, PCSIR, WAPDA  Full income tax waiver 
Welfare Organizations  Edhi Foundation, Shaukat Khanum Hospital  Charitable income exempt 
Educational Institutions  Aga Khan University  Tuition and research funds 
International Aid  UN Agencies in Pakistan  Project-specific relief 

 

Access the full list on the FBR portal under Income Tax SROs. Cross-check your NGO against its post-approval to ensure alignment. 

 

Exploring Senior Citizen Tax Exemption in Pakistan 

Because our interest is NGOs in this case, the Pakistan tax exemption also applies to marginalized societies, providing an integrated perspective on tax incentives. For example, Senior Citizens Tax exemption in Pakistan, target positive discrimination by providing a tax set up for those 70 and above, whose pensions are wholly exempt in that their over-75% pension payers will have no tax burden on them under the 2025 Budget. Seniors also get a 50% reduction in their tax on gross income, while investments such as Bahbood Savings Certificates are provided at attractive rates. Such measures, and exemptions for NGOs, are part of Pakistan’s broader move to open its economic policies. 

 

Engaging CBM Consultants 

CBM Consultants help their clients fend off the local government’s attempt to deregister an at-risk NGO. It proves that an entity is in fact a proper charitable organization as required by local law. We help in filling out the tax exemption form, getting the tax exemption certificate and ensuring compliance with FBR regulations. Our firm regulates whether an NGO’s work falls on the FBR Income Tax exemption list and keeps clear financial records. It undergoes regular external audits to enhance credibility. In doing this, our experts not only assist NGOs to reduce their taxes but also restore confidence amongst the donor community. 

 

Conclusion 

Tax exemption is not just a perk; it is a lifeline for NGOs whose work is changing Pakistan. By dominating tax exemption in Pakistan, mastering the tax exemption form, getting a copy of your tax exemption certificate, and leveraging the FBR Income Tax exemption, your NGO can prosper! Even larger inducements, such as senior citizen tax break in Pakistan, underscore the fairness of the system.