Karachi, November 2, 2023 – The Federal Board of Revenue (FBR) has announced a procedure for taxpayers who have filed their income tax returns after the deadline to be included in the Active Taxpayers List (ATL).
The income tax return filing deadline for the tax year 2023 expired on October 31, 2023, following a one-month extension from the original due date of September 30, 2023.
Taxpayers who filed their tax returns by the original due date will automatically be included in the ATL, which is scheduled to be published on March 1, 2024. However, for individuals who file their returns after the deadline, along with the required fine, there is an additional requirement to pay a default surcharge in order to appear in the ATL.
The ATL is a crucial document that provides numerous benefits to taxpayers, including reducing their withholding tax liability when conducting various financial transactions.
According to the procedure outlined by the FBR, a person’s name will be included in the current ATL if the tax return filed corresponds to the tax year of the relevant ATL. For instance, to be part of the ATL published on March 1, 2024, a person must have filed a tax return for the tax year 2023.
The restriction on including a person’s name on the ATL, if the individual has not filed a tax return by the due date specified by the Income Tax authorities, was initially introduced through the Finance Act of 2018. However, the Finance Act of 2019 amended this provision, allowing a person’s name to be part of the ATL even if the tax return is filed after the due date specified by the Income Tax authorities.
Furthermore, a surcharge for placement on the ATL after the due date of filing a tax return will be levied as follows:
Companies: Rs 20,000
Associations of Persons (AOP): Rs 10,000
Individuals: Rs 1,000
Companies or AOPs will be included in the ATL if their return is not required to be filed due to incorporation or formation after the 30th day of June relevant to the tax year pertaining to the ATL. Joint account holders will be deemed part of the ATL if any of the individuals within the joint account meet the criteria for inclusion in the ATL. Bank accounts held in the name of minors will also be considered part of the ATL if the parents, guardians of the minor, or any person who has deposited money into the minor’s account meet the inclusion criteria.
Late filers of income tax returns for the Tax Year 2023 can pay the “Surcharge for ATL” as defined under section 182(A) of the Income Tax Ordinance 2001 by selecting the Tax Payment Nature “Misc” head in the PSID (Payment Slip Identification). Only after the payment of the surcharge will the name of the late filer become part of the ATL.
This new procedure provides a path for individuals who missed the original tax return deadline to rectify their tax status by appearing in the ATL, albeit with the requirement to pay the specified surcharge. It underscores the importance of timely tax return filing and compliance with tax regulations to access the benefits associated with being part of the ATL.
