{"id":299,"date":"2026-10-06T11:57:47","date_gmt":"2026-10-06T11:57:47","guid":{"rendered":"https:\/\/xactlegal.com\/blogs\/?p=299"},"modified":"2026-10-06T11:57:48","modified_gmt":"2026-10-06T11:57:48","slug":"fbr-15-day-deadline-for-discontinued-businesses-tax-year-2027","status":"publish","type":"post","link":"https:\/\/xactlegal.com\/blogs\/fbr-15-day-deadline-for-discontinued-businesses-tax-year-2027\/","title":{"rendered":"FBR 15-Day Deadline for Discontinued Businesses – Tax Year 2027"},"content":{"rendered":"\n

The Federal Board of Revenue (FBR)<\/a><\/strong> has set a 15-day notification requirement<\/strong> for taxpayers who discontinue their business during Tax Year 2027.<\/p>\n\n\n\n

Under Section 117 of the Income Tax Ordinance, 2001<\/strong>, a person who discontinues a business must notify the Commissioner in writing within 15 days. A separate income tax return may also be required for the period in which the business operated before discontinuation.<\/p>\n\n\n\n

15-Day Notice Requirement<\/h2>\n\n\n\n

When a taxpayer discontinues a business, written notice must be submitted to the relevant Commissioner Inland Revenue within 15 days<\/strong> of discontinuing the business.<\/p>\n\n\n\n

This requirement helps FBR establish the date on which business operations ended and determine the taxpayer’s remaining tax obligations.<\/p>\n\n\n\n

Separate Tax Return for the Discontinued Period<\/h2>\n\n\n\n

Discontinuing a business does not eliminate the requirement to report income earned before the business closed.<\/p>\n\n\n\n

The taxpayer must submit an income tax return covering the period:<\/p>\n\n\n\n

First day of the tax year \u2192 Date of business discontinuation<\/strong><\/p>\n\n\n\n

This period is treated as a separate tax year<\/strong> for purposes of the Income Tax Ordinance.<\/p>\n\n\n\n

For Tax Year 2027, the relevant tax year generally runs from July 1, 2026 to June 30, 2027<\/strong>.<\/p>\n\n\n\n

What If the Taxpayer Does Not Notify FBR?<\/h2>\n\n\n\n

Section 117 also gives the Commissioner authority to take action where there are reasonable grounds to believe that a business has been discontinued or is likely to be discontinued.<\/p>\n\n\n\n

The Commissioner may issue a notice requiring the taxpayer to submit an income tax return for the specified period within the prescribed timeframe.<\/p>\n\n\n\n

The Return Is Treated as a Regular Tax Return<\/h2>\n\n\n\n

A return filed under Section 117 is treated as an income tax return for the purposes of the Income Tax Ordinance, 2001<\/strong>.<\/p>\n\n\n\n

This means the return remains subject to the applicable provisions governing income tax returns, including the relevant assessment framework.<\/p>\n\n\n\n

What Should Businesses Do After Closing?<\/h2>\n\n\n\n

Businesses that have discontinued operations should promptly:<\/p>\n\n\n\n