ISLAMABAD: The government may allow late filers of income tax returns to get their names into the Active Taxpayers List (ATL), which is mandatory for availing reduced rate of withholding tax.
Through Finance Act, 2018 the late filers have been disallowed to get their names in the ATL.
In case a person files his return for tax year 2018 after due date then he is return filer but his name will not be appear in the ATL, which will be issued on March 01, 2019, the sources said on Friday.
In order to get his name into the ATL he has to file income tax return for tax year 2019 and wait till March 2020 for availing reduced rate of withholding tax rates.
Sources in Federal Board of Revenue (FBR) said that due to this restriction the government would lose significant number of return filers during tax year 2018.
The FBR received around 1.5 million returns for tax year 2018 and these return filers would qualify for the ATL.
On the other hand the latest weekly ATL 2018 shows the number of return filers have increased to 1.8 million. This means the next ATL will have less number of return filers.
FBR sources said that considering significant loss the government is considering to lift the restriction.