The Federal Board of Revenue (FBR) just offered a potential lifeline for late income tax filers. FBR recently issued a draft amendment allowing late filers to join the Active Taxpayers’ List (ATL) without paying the standard Rs. 25,000 surcharge. However, this relief comes with a strict condition. Late filers must agree to completely avoid buying property for six months. This proposal gives taxpayers a new route to active status with just one major restriction.
The Condition Set by FBR for Late Filers to Join ATL Without Fine
FBR plans to amend the Income Tax Rules, 2002. Specifically, the board proposes adding new sub-rules (2B), (2C), and (2D) to Rule 81B. If authorities approve this amendment, taxpayers filing after the due date can skip the financial penalty. First, they must submit a formal undertaking. They will do this through Form ATL-U in the IRIS system under Section 182A(3).
Consequently, the FBR will waive the fine and add the taxpayer to the ATL. However, the property restriction immediately takes effect. The taxpayer cannot purchase, acquire, or obtain any ownership or beneficial interest in any property for six months. Furthermore, this restriction period officially begins on the exact date the IRIS system generates the electronic acknowledgment for the submitted Form ATL-U.
Strict Monitoring & Penalties
Naturally, FBR will not rely on the honor system. Instead, the board will actively monitor taxpayer compliance. Officials will verify activities using data obtained from registries, financial institutions, relevant authorities, and other agencies.
If FBR catches a taxpayer acquiring property during this six-month window, the board will intervene. Initially, authorities will give the taxpayer a fair opportunity to explain the transaction. However, if FBR proves the violation, the consequences are immediate. The board will permanently withdraw the surcharge waiver effective from the date of the violation. Subsequently, FBR will revert the taxpayer’s ATL status and determine it under standard Rule 81B(2A) regulations.
What Happens Next?
Right now, the proposed amendment remains a draft. FBR has given stakeholders a short seven-day window to submit any objections or suggestions before finalization.
Additionally, the draft outlines the introduction of Part XV to the First Schedule. This legal addition officially creates Form ATL-U. To complete this document, taxpayers will provide their name, CNIC or NTN, tax year, and the return filing date. Finally, they must include their IRIS reference number alongside the date of the undertaking.
