Taxpayers who missed the October 31, 2026, deadline for Tax Year 2026 may face surcharges to enter the Active Taxpayers List, alongside restrictions on refunds and loss adjustments.
ISLAMABAD: The Federal Board of Revenue (FBR) has clarified that taxpayers who filed their income tax returns by the prescribed deadline of October 31, 2026, will qualify for inclusion in the Active Taxpayers List (ATL) for the relevant tax year.
The original deadline for filing income tax returns for Tax Year 2026 was September 30, 2026. The FBR subsequently extended it to October 15 and then to October 31, 2026.
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According to Section 182A of the Income Tax Ordinance, 2001, updated up to June 30, 2026, taxpayers who fail to submit returns under Section 114 by the applicable due date will not be included in the ATL for the year concerned.
Surcharge for Late Inclusion in ATL
The law allows late filers to enter the ATL after submitting their returns and paying the prescribed surcharge. The applicable amounts are:
• Companies: Rs100,000
• Associations of persons (AOPs): Rs50,000
• Individuals: Rs25,000
The surcharge is in addition to any other liability under the Income Tax Ordinance.
Consequences of Missing the Deadline
Section 182A also sets out other consequences for taxpayers who miss the filing deadline. These include restrictions on carrying forward losses under Part VIII of Chapter IV for the relevant tax year.
Furthermore, taxpayers will not receive refunds while they remain outside the ATL. They will also be ineligible for additional payments on delayed refunds under Section 171 for the period during which they are not included in the list. That period will be excluded when calculating additional payments.
Exemption for Certain Individuals
The ordinance provides an exception to the surcharge requirement for an individual who submits an undertaking to the Commissioner declaring that they will not purchase, acquire or otherwise obtain ownership or a beneficial interest in any property for six months from the date of the undertaking, in the prescribed form.
The provisions make timely return filing important for taxpayers seeking to maintain ATL status and avoid additional costs and restrictions associated with late filing.
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