ISLAMABAD: Appearance of a taxpayer in Active Taxpayers List (ATL) has become very important to avail benefit of reduced withholding income tax rate.
The ATL has become even more important after the inclusion of 10th Schedule to Income Tax Ordinance, 2001 through Finance Act, 2019 under which a person, who is not part of the ATL, is subject to 100 percent additional withholding tax.
According to Federal Board of Revenue (FBR) a taxpayer can check its active status in three different ways, which included:
Verification through Online Portal:
The ATL status check allows you to confirm your Active Taxpayer status.
Check Active Taxpayer status by SMS:
Check Individual’s Active Taxpayer status by SMS
Type “ATL (space) 13 digits Computerized National Identity Card (CNIC)” and send to 9966.
Check Active Taxpayer status of AOP and Company by SMS
Type “ATL (space) 7 digits National Tax Number (NTN)” and send to 9966.
To check active status by taxpayers of Azad Jammu and Kashmir by SMS
For Individual, type AJKATL (space) CNIC (without dashes). Send it to 9966.
Having NTN AJKATL (space) 11 digit NTN (without dashes). Send it to 9966.
The Active Tax Payer’s List of AJK is to be considered at par with the ATL (Income Tax) after amendment in the Income Tax Ordinance 2001 through Finance Act 2018.
Check Active Taxpayer status by downloading ATL from FBR official website.
The FBR said that a person appearing on the ATL will have following benefits:
Lower rates of tax deduction at source by banks on both profits and cash withdrawals
Reduction on withholding tax (tax already deducted from your income and gains) when registering and transferring motor vehicles
Lower rate of tax on buying and selling of property
Lower withholding tax rate on capital gains on sale of securities
Charges for tax on dividend will be lower
Lower rate of withholding tax on prize bond winnings
Allows you to claim back overpaid tax that has been withheld.
The FBR said that a person’s name will be part of the current ATL, if the Tax Return filed pertains to the Tax year of the relevant ATL.
For example, to be part of the ATL published on 1st March 2018, a person must have filed a Tax return for the Tax year 2017. Similarly, to be a part of the ATL published on 1st March 2019, a person must have filed a Tax Return for the Tax year 2018.
Restriction on including a person’s name on ATL, if the person has not filed Tax Return by the due date specified by Income tax authorities was introduced through Finance Act, 2018. For example, to be part of the ATL published on 1st March 2019, a person must file a Tax Return by the specified due date for the Tax year 2018.
However, through Finance Act, 2019 a person’s name can be part of ATL, even if the person has filed Tax Return after the due date specified by Income Tax authorities.
Furthermore, a surcharge for placement on ATL after due date of filing of Tax Return will be charged as under:
Association of Persons: Rs10,000
A company or an AOP shall be included in the ATL, whose return is not to be filed due to incorporation or formation after 30th day of June relevant to the Tax year pertaining to the ATL.
Joint account holders as an entity shall be deemed to be part of ATL if any of the persons in the joint account have met the criteria of being included in the ATL.
Bank account held in the name of a minor shall be considered part of ATL if the parents, guardians of the minor or any person who has deposited money in minor’s account are deemed to have met the criteria of being included in the ATL.
The FBR said that the late filers of Income Tax Return for Tax Year 2018 can pay “Surcharge for ATL” as defined under section 182(A) of Income Tax Ordinance 2001 by clicking on Tax Payment Nature “Misc” head in the PSID.
The name of late filer will appear on the ATL only after the payment of surcharge, the FBR added.