The Federal Board of Revenue (FBR) has made a significant announcement regarding late income tax return filers, stating that their names will be added to the Active Taxpayer’s List (ATL) upon payment of a specified surcharge.
This decision follows the issuance of S.R.O.1635(I)/2024, which updates the Income Tax Rules.
Under the new guidelines, individuals who file their income tax returns for the most recent tax year whether by the original deadline or any extended deadline set by the Commissioner or the Board will be included in the ATL.
The “latest tax year” refers to the most recently completed tax year before the filing date and may also include the previous year, as long as the deadline for that year has not yet passed.
For taxpayers who submit their returns after the designated due date, their inclusion in the ATL will depend on the payment of a specified surcharge as outlined in section 182A of the Income Tax Ordinance.
This measure aims to encourage timely compliance while still providing a pathway for late filers to avoid penalties.
Additionally, the FBR clarified that companies or associations formed after June 30 of the relevant tax year will also qualify for inclusion in the ATL, provided their returns have not yet reached their due dates.
Moreover, individuals filing their returns with the Azad Jammu and Kashmir Central Board of Revenue or the Gilgit Baltistan Council Board of Revenue will also be acknowledged in the ATL.
This initiative underscores the FBR’s commitment to enhancing compliance and ensuring that all taxpayers are recognized for their contributions, regardless of when they file their returns.
