ISLAMABAD: The Federal Board of Revenue (FBR) has achieved a record-breaking milestone by receiving 3.06 million income tax returns for the tax year 2019, as per the latest Active Taxpayers List (ATL) issued on Monday. This remarkable achievement reflects the FBR’s sustained efforts to enhance compliance and encourage taxpayers to fulfill their obligations.
The 3.06 million returns filed for tax year 2019 are based on submissions made up to January 24, 2021. This record-setting figure is the result of multiple initiatives undertaken by the FBR, including targeted awareness campaigns and stringent measures aimed at ensuring that individuals and entities with taxable income file their returns.
For the tax year 2020, the number of returns filed stood at 2.316 million as of January 4, 2021. The FBR has announced that the ATL for tax year 2020 will be issued on March 1, 2021, while the ATL for 2019 will remain valid until February 28, 2021. This transition ensures that taxpayers continue to benefit from compliance until the updated list is released.
Filing annual income tax returns is a mandatory requirement for individuals and entities with taxable income or those involved in specific transactions or asset ownership. The FBR has reiterated that inclusion in the ATL is conditional on filing returns by the due date or by paying a penalty for late submissions. Being listed on the ATL offers significant advantages, including a reduced rate of withholding tax, which is double for those not appearing on the list.
Under Section 114 of the Income Tax Ordinance, 2001, various categories of individuals and organizations are obligated to file annual income tax returns. This includes companies, individuals with incomes above the taxable threshold, non-profit organizations, and owners of substantial properties or motor vehicles. Additionally, professionals, business entities, and residents holding foreign income and asset statements are also required to file returns.
The FBR’s proactive measures have played a crucial role in achieving this compliance milestone. By streamlining procedures and providing clear guidelines, the FBR has made it easier for taxpayers to understand and meet their obligations. The FBR continues to emphasize the importance of timely filing, as it directly impacts national revenue collection and economic growth.