The announcement comes just a day after the tax authority had categorically denied reports of any extension, warning that the September 30 deadline was final and penalties would apply for late filers.

In a fresh statement, however, the FBR confirmed that taxpayers now have until mid-October to meet their obligations.

The decision is expected to provide relief to millions of individuals and businesses, especially after concerns were raised about compliance difficulties in some areas.

Earlier, the FBR had rejected speculation linking the deadline change to flood disruptions, insisting that the majority of taxpayers reside in unaffected areas and had “ample time” to file.

It also dismissed complaints about its online filing system IRIS, stressing that the portal remained “fully operational and functioning smoothly.”

Tax experts say the new extension reflects growing pressure on the tax authority amid calls for flexibility, particularly given the large number of pending returns.

The FBR has reminded taxpayers to ensure timely submission by the new deadline, warning that late filers will still face penalties and restrictions under the law.