FBR lets late return filers join Active Taxpayers List without surcharge

The Federal Board of Revenue (FBR) has decided to let taxpayers who file their income tax returns after the deadline join the Active Taxpayers List (ATL) without paying a surcharge. The change comes through further amendments to the Income Tax Rules, 2002. According to 24 News Business, the amendment relates to Rule 81B.

The facility is open to individual taxpayers who file after the original due date or after an extended date. To use it, they must submit a written undertaking through the FBR's IRIS portal on Form ATL-U, as reported by Express News.

Under the undertaking, the taxpayer agrees not to buy or acquire ownership of, or any interest in, any property for six months. IRIS issues an electronic receipt once the undertaking is successfully submitted, and the six-month period runs from the date on that receipt.

The form must record the taxpayer's name, CNIC or NTN number, the tax year, the date of filing, the IRIS receipt or reference number and the date of the undertaking.

The FBR may check compliance by obtaining information from relevant bodies and agencies, property registries, financial institutions and other legal sources.

If the FBR finds that a taxpayer acquired property or an interest in it during the six months, the taxpayer will first be given a chance to state their position electronically. If a violation is established, the surcharge exemption will be cancelled. According to 24 News Business, the withdrawal applies from the date of the violation.

In that case, inclusion in the ATL will be decided under the standard earlier rules, which require payment of a surcharge.