FBR floats relief for late filers on Active Taxpayers List: FBR ATL late filers
The Federal Board of Revenue (FBR) has proposed a new route for late income tax filers to join the Active Taxpayers List (ATL) without paying the Rs25,000 surcharge, according to a draft amendment put forward for public comment.
The proposal would amend the Income Tax Rules 2002 and introduce a new form, Form ATL-U. Under the change, a taxpayer who files their return after the due date could secure active status by furnishing an undertaking that they will not purchase, acquire or otherwise obtain ownership of any property for six months. The undertaking would replace the surcharge that currently applies to late filers.
FBR has invited objections and suggestions from taxpayers and practitioners within seven days before the amendment is finalised.
Why the ATL matters
The Active Taxpayers List is the board’s official record of those who have filed their income tax returns for the current tax year. Being on the list qualifies a person or company for lower withholding tax rates on banking transactions, property deals, vehicle purchases and other dealings.
The filing deadline for individuals and associations of persons for Tax Year 2026 was September 30. Those who missed it face a daily late-filing penalty in addition to the surcharge for re-entering the list.
Under the existing law, a late filer gets onto the list only after paying a surcharge under Section 182A of the Income Tax Ordinance. For individuals, that surcharge is Rs25,000. The draft amendment would create a formal prescribed procedure for the alternative: file late, submit the undertaking in the new Form ATL-U, and join the list without the payment.
What the undertaking involves
The condition attached to the concession is specific. The taxpayer must pledge, before the Commissioner, that no property will be bought or acquired for six months starting from the date the undertaking is furnished.
Tax practitioners note that the concession targets a real problem. Many late filers are individuals who missed the deadline by days rather than months, and the fixed Rs25,000 charge can feel disproportionate, particularly for salaried taxpayers with modest tax liability. For them, a six-month restraint on property purchases is a lighter burden than the cash payment.
The board has not said when the final notification will be issued. Taxpayers who intend to rely on the new procedure will need to wait for the amendment to be published before the prescribed form can be used.
What late filers should do now
Until the amendment is finalised, the current rules apply. Anyone who has not yet filed for Tax Year 2026 remains liable to the surcharge, and the seven-day comment window gives professional bodies and taxpayers a chance to flag practical problems with the proposed form and procedure.
FAQs
What is the Active Taxpayers List?
The ATL is FBR’s list of individuals and businesses that have filed their income tax return for the current tax year. Active status brings lower withholding tax rates on banking, property and vehicle transactions.
How much is the current ATL surcharge for late filers?
An individual filing after the due date pays a Rs25,000 surcharge under Section 182A to be included in the list. The proposed amendment would offer a surcharge-free route in exchange for a property undertaking.
How can I check my ATL status?
Send an SMS with your 13-digit CNIC number to 9966. For a company or association of persons, send the 7-digit NTN instead. The reply confirms whether your status is active.
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Originally reported by propakistani.pk.
