The Federal Board of Revenue (FBR) has introduced a streamlined process to assist taxpayers in fulfilling their obligations and securing a spot on the coveted Active Taxpayers List (ATL).
Understanding the intricacies of this system is essential for taxpayers aiming to maintain compliance and access the associated benefits.
Late filers of the Income Tax Return for Tax Year 2023 can now easily settle the “Surcharge for ATL,” as defined under section 182(A) of the Income Tax Ordinance 2001. This can be done by navigating to the Tax Payment Nature “Misc” head in the PSID (Payment Slip Identification) system. It’s important to note that only after the payment of this surcharge will the late filer’s name be eligible for inclusion in the ATL.
The ATL serves as a central repository of online Income Tax Return filers for the preceding Tax Year. Updated weekly on the FBR website, the list plays a crucial role in determining the tax compliance status of individuals and entities. ATL publication occurs annually on March 1st and remains valid until the end of February of the subsequent financial year.
For individuals to feature on the current ATL, they must have filed a Tax Return corresponding to the Tax Year of the relevant ATL. This means filing for the preceding year by the due date specified by the Income Tax authorities. However, recent amendments have introduced flexibility, allowing late filers to still be considered for inclusion, albeit with a surcharge.
The surcharge rates vary based on the taxpayer’s category:
• Companies: Rs 20,000
• Associations of Persons (AOP): Rs 10,000
• Individuals: Rs 1,000
Exceptions are made for companies or AOPs formed after June 30th of the relevant Tax Year, where inclusion on the ATL is permitted despite non-filing.
Moreover, joint account holders and minors’ accounts are subject to specific criteria for ATL inclusion. If any joint account holder meets the ATL criteria, the entire entity is deemed eligible. Similarly, a minor’s account is considered part of the ATL if guardians or depositors meet the necessary criteria.
For taxpayers, verifying their Active Taxpayer status is crucial. This can be accomplished through three methods:
1. Online Portal Verification: Utilize the online portal to confirm your Active Taxpayer status.
2. SMS Verification: Individuals can check their status by sending an SMS in the specified format to 9966. Similarly, AOPs, companies, and AJ&K taxpayers have designated formats for SMS verification.
3. Download ATL: Access the Active Taxpayer List directly from the FBR website.
Being on the ATL offers numerous benefits, including lower tax deduction rates at source by banks, reduced withholding tax on motor vehicle transactions and property dealings, and favorable rates on capital gains and dividend taxes. Additionally, it allows taxpayers to reclaim overpaid taxes and enjoy lower withholding tax rates on prize bond winnings.
Understanding the process of paying FBR surcharges for ATL inclusion and actively monitoring Active Taxpayer status is essential for taxpayers seeking to maintain compliance and access the associated benefits. By staying informed and adhering to regulatory requirements, taxpayers can navigate the tax landscape with confidence and efficiency.
