Taxpayers who failed to comply with tax-related formalities for coronavirus-induced shutdown will be able to accomplish their tasks by June 29 this year.
The National Board of Revenue (NBR) issued a notification in this regard yesterday waiving penalty and interest on tax matters that taxpayers could not comply with from March 26 to May 30 this year amid the lockdown and closure of most of the offices.
Taxmen said many taxpayers could not timely submit tax returns, statements of return filing by employees and withholding tax deductions during the period. Problems also arose for various tax appeal-related issues that are time-bound as per law.
Yesterday, the NBR extended the deadline for complying with tax appeal and alternative dispute resolution related matters that should have been accomplished between March 26 and May 30.
The deadline has been extended until August 5 this year.
The NBR's move came after the government issued an ordinance last month, giving power to the tax authority to take into consideration the period of the pandemic in computing the time limits and extend those.
A senior official of the NBR yesterday said they took the shutdown periods into context and no interest or penalty would be charged for the inability of taxpayers to comply.
For example, employers have to submit statements of income tax filing by their employees within April 30 every year to avoid penalty.
But this year, despite the willingness to do so, many firms could not do so for the shutdown enforced since March 26 to flatten the curve on the novel coronavirus.