The Federal Board of Revenue (FBR) has proposed allowing individuals who file income tax returns after the due date or extended deadline to join the Active Taxpayers List (ATL) without paying the surcharge, provided they agree not to acquire any property for six months.
The draft amendments to the Income Tax Rules 2002 were issued on Tuesday through SRO1690. The FBR has invited stakeholders to submit feedback within one week before finalising the rules.
Under the proposed sub-rule (2B) of rule 81B, a taxpayer who files the return for the latest tax year late must submit an undertaking through the IRIS portal to qualify. The undertaking commits the individual not to purchase, acquire or otherwise obtain ownership or beneficial interest in any property for six months.
The restriction will start from the date on the electronic acknowledgement generated by IRIS after the newly prescribed Form ATL-U is successfully submitted.
The FBR will be empowered to verify compliance using information available under the Income Tax Ordinance, as well as data received from any authority, agency, registry, financial institution or other lawful source.
If the data shows that a taxpayer acquired property during the six-month period, the individual will first be given an electronic opportunity of being heard.
If the breach is established, the surcharge-free ATL benefit will be withdrawn from the date of the violation. The taxpayer’s subsequent ATL status will then be governed by the existing provisions for late filers.
Form ATL-U will require the individual’s name, CNIC or NTN, tax year, date of filing the return, IRIS acknowledgement or reference number, and the date the undertaking is furnished. IRIS will verify the undertaking electronically.
