ISLAMABAD: The Federal Tax Ombudsman (FTO) has issued strict instructions to the Federal Board of Revenue (FBR), directing the Member Inland Revenue (Operations) to ensure that all pending applications for extension in filing income tax returns are disposed of within three days.
In a detailed order released on 25th November 2025, the FTO held that the persistent delay in processing taxpayers’ extension applications—and the failure to timely communicate extension approvals—constitutes maladministration under Section 2(3)(ii) of the FTO Ordinance, 2000.
The Ombudsman directed the FBR to immediately instruct Member IR (Operations) to ensure that all concerned commissioners dispose of every pending extension application promptly, and within the prescribed three-day timeframe. Furthermore, the FBR has been told to instruct commissioners to provide reasonable time to taxpayers who received extension approval notifications after the expiry of the extended deadline.
The case was triggered by a complaint filed by a taxpayer who reported that numerous online applications for extension in filing annual income tax returns for Tax Year 2025 remained unprocessed. According to the complaint, despite taxpayers submitting their requests on time through the IRIS portal, their applications remained stuck in the system’s Outbox without any decision from the tax authorities.
The complainant argued that the delay not only amounted to administrative negligence but also violated taxpayers’ lawful rights under the Income Tax Ordinance, 2001. The dysfunctional state of the system, he added, caused unnecessary hardship and raised concerns about fairness and procedural justice in tax administration.
Upon reviewing the record, the FTO noted that the FBR had begun disposing of some applications following its intervention. However, taxpayers were still being notified of extensions two days after the extended deadline had already passed, further exacerbating their difficulties.
The FTO emphasized that such delays undermine public confidence in the tax administration system and reiterated the need for timely and transparent processing of all taxpayer applications.
