FBR proposes ATL inclusion for late filers without surcharge

The Federal Board of Revenue (FBR) has proposed amendments to the Income Tax Rules, 2002, to allow late filers to join the Active Taxpayers List (ATL) without paying the standard surcharge. Under the proposed mechanism, individuals who file their latest income tax returns after the prescribed or extended deadline could qualify for inclusion by submitting a formal undertaking through the Iris system using Form ATL-U.

To qualify for this waiver, taxpayers must adhere to a strict condition: they are prohibited from purchasing, acquiring, or obtaining any ownership or beneficial interest in any property for a period of six months. This restriction period begins on the date the Iris system generates the electronic acknowledgment for the submitted undertaking.

The FBR intends to monitor compliance through data from financial institutions, registries, and other relevant authorities. If a taxpayer violates the property restriction during the six-month window, the FBR will permanently withdraw the surcharge waiver and revert the taxpayer’s status. The board has invited stakeholders to submit objections or suggestions regarding these proposed changes within seven days of the official notification.