Income Tax Ordinance 2001: Late filers not to get names on ATL

Income Tax Ordinance 2001: Late filers not to get names on ATL

KARACHI: Late filers of income tax returns will not get their name on the Active Taxpayers List (ATL) that will be issued tomorrow (March 01, 2019).

The Federal Board of Revenue (FBR) will issue the latest edition of ATL, which will carry names of those taxpayers who filed their income tax returns by due date for Tax Year 2018.

With the issuance of new active taxpayers’ list the FBR will also suspend the weekly updated list as the late filers have been denied to have their names on the list.

The previous PML-N government in its last budget announcement made a law to restrict the list with those name, who filed their list by due date.

Through Finance Act, 2018 a new provision Section 182A was added to Income Tax Ordinance, 2001 for this purpose.

Section 182A: Return not filed within due date.—

Sub-Section (1): Notwithstanding anything contained in this Ordinance, where a person fails to file a return of income under section 114 by the due date as specified in section 118 or by the date as extended by the Board under section 214A or extended by the Commissioner under section 119, as the case may be, such person shall—

(a) not be included in the active taxpayers’ list for the year for which return was not filed within the due date; and

“Explanation.—For the removal of doubt it is clarified that the provisions of this section shall apply from tax year 2018 and onwards for which the first Active Taxpayers List is to be issued on first day of March, 2019 under Income Tax Rules, 2002.; and

(b) not be allowed, for that tax year, to carry forward any loss under Part VIII of Chapter IV.

The FBR issued its last weekly updated ATL for Tax Year 2017 on Monday, February 25, 2019, which carried those taxpayers list who filed their returns up to February 24, 2019.

The last ATL shows the FBR received 1.84 million returns till February 24, 2019 for tax year 2017.

While, the FBR received around 1.55 million income tax returns for tax year 2018 by due dates for individuals and corporate entities.

The appearance on ATL is important for a taxpayer to avail reduced rate of withholding tax rates.

The appearance of name has become even more important after the amendments brought in to restrict non-filers in purchase / registering new motor vehicles and immovable properties.

2 thoughts on “Income Tax Ordinance 2001: Late filers not to get names on ATL

  1. TWO PROPOSALS TO BROAD THE TAX BASE 1. every Property owner while letting out his/her property need to submit the rental agreement in the respective police station. If its not applicable in all cities then the government should make it mandatory to comply by all the property owners at the time of letting out the property. Also the FBR appoint a well reputed team of person in FBR who should have powers to collect all the rent agreement from the police stations and barring a basic thresh hold, issue notice to all property owners who let their property, issue them notices and make them tax filer and collect the tax on such rental income. It will add a lot of money to the national exchequer
    2. make rule that all persons holding any asset (with some basic exemption) shall file the Income tax Return and wealth statement, otherwise their assets cannot be transferred/ inherited to their children/siblings. This will on one hand make more and more people filer and on the other hand contribute to the national exchequer in the form of tax from them on the increase in their wealth year to year.

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