Under SRO 2097(I)/2026, individuals filing late income tax returns can seek an ATL surcharge waiver by submitting Form ATL-U and undertaking not to acquire property for six months.
ISLAMABAD: The Federal Board of Revenue (FBR) has notified a new procedure allowing individuals who file their income tax returns for tax year 2026 after the October 31, 2026 deadline to secure inclusion in the Active Taxpayers’ List (ATL) without paying the prescribed late-filing surcharge.
The tax authority issued S.R.O. 2097(I)/2026, introducing amendments to the Income Tax Rules, 2002 under Section 237 read with sub-section (3) of Section 182A of the Income Tax Ordinance, 2001.
Under the newly inserted sub-rule (2B) of Rule 81B, individuals filing late returns for the latest tax year can request an exemption from the ATL surcharge by submitting an undertaking through the FBR’s IRIS portal using Form ATL-U.
The procedure allows eligible taxpayers to seek ATL inclusion without paying the surcharge, subject to compliance with the prescribed conditions.
Six-month restriction on property purchases
According to sub-rule (2C), the six-month restriction period will begin on the date mentioned in the electronic acknowledgement issued by IRIS after successful submission of Form ATL-U.
Under the prescribed undertaking included in Part XV of the First Schedule, applicants must declare that they will not purchase, acquire or otherwise obtain ownership or beneficial interest in any property during the six-month period.
FBR to verify compliance
The FBR has retained the authority to verify compliance through its internal tax records and information obtained from third-party authorities, financial institutions, government agencies and property registries.
Under sub-rule (2D), if evidence indicates that an individual acquired property during the restricted period, the taxpayer will be provided an electronic opportunity of being heard.
If a violation is established, the surcharge waiver will be withdrawn retrospectively from the date of the breach. The taxpayer’s ATL inclusion will consequently revert to the standard conditions prescribed under sub-rule (2A).
The notification was signed by Naveed Hassan, Secretary (Rules & SROs), Revenue Division.
The new procedure provides eligible late filers with an alternative route to ATL inclusion while introducing a six-month property acquisition restriction to ensure compliance.