“In view of the demand of trade bodies and various tax bar associations, it has been decided that the date of filing of income tax return for Tax Year 2023 is extended to 31st October, 2023. However, no further extension for filing of said return shall be granted,” the FBR stated in a post on X.

It is pertinent to mention that the FBR has collected Rs2.04 trillion in the first quarter of the current financial year, FBR against the assigned target of Rs1.97 trillion, exceeding the target by Rs63 billion.

Read: FBR aiming to achieve tax collection target without imposing new taxes

Tax slabs

The government has reduced the number of slabs from seven to six, ending the slab that covered annual income between Rs6 million and Rs12 million.

People earning between Rs500,000 and Rs1,000,000 per month were paying Rs1,005,000 + 32.5% of the amount exceeding Rs6,000,000 in annual tax. Now, they have been subjected to a higher rate of 35% for all income exceeding Rs6,000,000 per annum. They will also pay a fixed amount of Rs1,095,000.

On the other hand, people who previously fell in the final slab of Rs12 million and above annual income will now enjoy a tax benefit. They were previously paying Rs2,955,000 in fixed income tax and 35% on the amount exceeding Rs. 12,000,000.

The fixed portion of the income tax for them has be reduced by almost Rs100,000.