Pkrevenue.com

Tag: Active Taxpayers List

  • How to check ATL status?

    How to check ATL status?

    KARACHI: Appearance of name on active taxpayers list (ATL) has become very important especially after the introduction of 10th Schedule to Income Tax Ordinance, 2001 through Finance Act, 2019.

    The filing of income tax return is mandatory for persons driving taxable income or specified under Section 114 of Income Tax Ordinance, 2001.

    The appearance of names on the ATL is only possible after filing income tax returns within due date. In case persons are not on the ATL then the rate of withholding tax shall be increased by 100 percent on various transactions.

    Persons fail to file their returns by due date but file after the date will also not qualify to enlist their name on the ATL until fine is not paid to the Federal Board of Revenue (FBR).

    Currently the ATL is in applicable on the basis of income tax returns filed for tax year 2018. The FBR will issue new ATL on the basis of returns filed for tax year 2019 on March 01, 2020.

    The last date for filing of income tax returns for tax year 2019 is February 28, 2020. The new ATL shall carry the names of those taxpayers who filed their income tax returns up to February 28, 2020.

    A taxpayer should check his/her status on the ATL before making transactions in order to avail reduced rate of tax rates.

    CHECK ACTIVE TAXPAYER STATUS

    Active Taxpayer status can be checked in the following three (3) ways:

    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 through the following procedure:

    Type “ATL (space) 13 digits Computerized National Identity Card (CNIC)” and send to 9966.

    Check Active Taxpayer status of AOP and Company by SMS through the following procedure:

    Type “ATL (space) 7 digits National Tax Number (NTN)” and send to 9966.

    Check AJ&K Active Taxpayer status by SMS through the following procedure:

    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.

    CHECK ACTIVE TAXPAYER STATUS BY DOWNLOADING ATL

    You can also download ATL from:

    Active Taxpayer List (Income Tax)

    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.

  • FBR to issue ATL Tax Year 2019 on March 01

    FBR to issue ATL Tax Year 2019 on March 01

    KARACHI: Federal Board of Revenue (FBR) will issued Active Taxpayers List (ATL) for tax year 2019 on March 01, 2020 to enable persons filed income tax returns for the tax year availing reduced rates and other benefits.

    ATL is published every financial year on the March 01 and is valid up to the last day of February of the next financial year, the FBR said.

    For example, Active Taxpayer List for Tax year 2017 was published on March 01, 2018 and will be valid till February 28, 2019.

    Similarly, Active Taxpayer List for Tax year 2018 was published on 1st March 2019 and will be valid till February 29, 2020.

    The appearance of ATL has become more important following amendment introduced through Finance Act, 2019 under which 100 percent additional tax has been imposed on certain transactions by persons not appearing on the ATL.

    The FBR in an official memorandum said that previously the law provided for the concept of a non-filer and stipulates higher withholding rates for the same which were adjustable at the time of filing of income tax return.

    This tax regime had created a misconception that a non-filer can go scot free by choosing not to file income tax return.

    The measure was meant to increase the number of filers, however over time the focus shifted to raising additional revenue only.

    The measure had not achieved the desired results as the previous regime did not provide for any legal framework to ensure filing of return by such non filers.

    In order to remove the aforesaid misconception, the concept and the term of ‘non-filer’ is being abolished from the statute, wherever occurring.

    A separate Schedule has introduced to specifically provide a legal framework for punitive measures for persons not appearing on ATL and to ensure filing of return by such persons.

    The main attributes of this scheme are as under:-

    — Persons whose names are not appearing on the ATL will be subjected to hundred percent increased rate of tax.

    — The withholding agents will clearly specify the names, CNIC or any other identification of such persons in the withholding statement so that legal provisions to enforce return can come into effect.

    — Where a withholding agent is of the opinion that hundred percent increased tax is not required to be collected on the basis that the person was not required to file return, the withholding agent shall furnish an intimation to the Commissioner setting out the basis on which the person is not required to file return. The Commissioner shall accept or reject the contention on the basis of existing law. In case the Commissioner fails to respond within thirty days, permission shall be deemed to be granted to not deduct tax at hundred percent increased rate

    — Where the person’s tax has been deducted or collected at hundred percent increased rate and the person fails to file return of income for the year for which tax was deducted, the Commissioner shall make a provisional assessment within sixty days of the due date for filing of return by imputing income so that tax on imputed income is equal to the hundred percent increased tax deducted or collected from such person and the imputed income shall be treated as concealed income.

    — The provisional assessment shall be of no effect if the person files return within forty five days of completion of provisional assessment and the provisions of the Ordinance shall apply accordingly. Where return is not filed within forty five days of provisional assessment, it shall be treated as final assessment and the Commissioner shall initiate penalty proceedings for concealment of income.

  • Income tax return filing hits new record high

    Income tax return filing hits new record high

    KARACHI: Income tax return filing has increased to a new record high of 2.76 million as people making compliance to avoid 100 percent additional tax on persons not appearing on Active Taxpayers List (ATL).

    (more…)
  • No tax on cash withdrawal from banks on active taxpayers: FBR

    No tax on cash withdrawal from banks on active taxpayers: FBR

    ISLAMABAD: Federal Board of Revenue (FBR) on Tuesday said that there is no tax on cash withdrawal from banks for those whose names are on the Active Taxpayers List (ATL).

    Otherwise, the withholding tax rate on cash withdrawal is 0.6 percent for persons not appearing on the ATL.

    In order to ensure names on ATL, taxpayers are required to file their annual income tax returns. The FBR urged the taxpayers to avail the extended the last date for filing income tax returns for tax year 2019, which is December 31, 2019.

    The FBR said that in case of enlistment in the ATL, the taxpayers shall have following benefits:

    — Almost half of the withholding tax as compared with the inactive taxpayers

    — 5.5 percent tax on imports (raw material)

    — 6 percent tax on imports (commercial)

    — 15 percent tax on dividends

    — 10 percent tax on bank and savings scheme profit worth up to Rs0.5 million and 15 percent on above Rs0.5 million

    — 4.5 percent tax on sale of goods by persons except companies

    — 10 percent tax on provision of services by persons except companies

    — 7.5 percent tax on contract executed by person except companies

    — 15 percent tax on prize bonds money of prize bonds

    — 12 percent tax on commission

    — Annual token fee of vehicles from Rs800 to Rs10,000

    — Withholding tax on vehicle registration from Rs7,500 to Rs250,000

    — No tax on cash withdrawal of more than Rs50,000 from banks

    — No tax on bank transactions (cross cheque, pay order, demand draft etc.)

    — One percent tax on purchase of property

    — 10 percent tax on sale by auction

    — Tax on mobile phone import from Rs70 to Rs200

    — 10 percent tax deduction for payment against advertisement to non-resident person

    The FBR said that in case of no enlistment in the ATL, the following tax rates are applicable:

    — Almost double tax rates

    — 11 percent tax on imports (raw material)

    — 12 percent tax on imports (commercial)

    — 30 percent tax on dividends

    — 20 percent tax on bank and savings scheme profit worth up to Rs0.5 million and 30 percent on above Rs0.5 million

    — 9 percent tax on sale of goods by persons except companies

    — 20 percent tax on provision of services by person except companies

    — 15 percent tax on contract executed by person except companies

    — 30 percent tax on prize money of prize bonds

    — 24 percent tax on commission

    — Annual token fee of vehicles from Rs1,600 to Rs20,000

    — Withholding tax on vehicle registration from Rs15,000 to Rs500,000

    — 0.6 percent tax on cash withdrawal of more than Rs50,000 from banks

    — 0.6 percent tax on bank transactions (cross cheque, pay order, demand draft etc.)

    — 2 percent tax on purchase of property

    — 20 percent tax on sale by auction

    — Tax on mobile phone import from Rs140 to Rs400

    — 20 percent tax deduction for payment against advertisement to non-resident person

    The FBR said that those persons failed to file their return then the tax authorities would assess the applicable tax without serving any notice. Further, legal action will be taken resulting into imprisonment of one to three years.

    The FBR also said that late income tax return filers will pay fine.

    The FBR said that the filing of income tax returns is mandatory for all persons with annual income of Rs400,000 or more.

  • Income tax return filing hits new record high of 2.7 million

    Income tax return filing hits new record high of 2.7 million

    ISLAMABAD: Measures to increase tax burden on non-compliant persons have resulted into record income tax return filing of 2.7 million for tax year 2018.

    (more…)
  • Procedure to check active taxpayer status

    Procedure to check active taxpayer status

    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.

    DOWNLOAD LATEST ATL

    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:

    Company: Rs20,000

    Association of Persons: Rs10,000

    Individual: Rs1,000

    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.

  • Income tax return filing increases to record 2.667 million

    Income tax return filing increases to record 2.667 million

    ISLAMABAD: The income tax return filing has increased to record level of 2.667 million, according to Active Taxpayers List (ATL) for tax year 2018 released on Monday.

    (more…)
  • FBR explains benefits of timely filing income tax returns

    FBR explains benefits of timely filing income tax returns

    ISLAMABAD: Federal Board of Revenue (FBR) has explained benefits of filing annual income tax returns for tax year 2019 by due date i.e. September 30, 2019.

    The FBR in its ongoing campaign for encouraging people to file their income tax returns by due date highlighted advantages of filing by due date and also pointed out disadvantages of non-compliance.

    The FBR said that for not filing the return by due date the person/company will be charged withholding tax at double rates; FBR will assess the applicable tax without serving any notice; legal action will be taken resulting into imprisonment of one to three years; fine will be charged on late submission of income tax return.

    By filing the income tax returns by due date i.e. September 30, a person/company shall be enlisted to Active Taxpayers List (ATL). The following are the benefits of ATL enlistment:

    — Almost half of the withholding tax as compared with the inactive taxpayers

    — 5.5 percent tax on imports (raw material)

    — 6 percent on imports (commercial)

    — 15 percent tax on dividends

    — 10 percent tax on bank and saving scheme profit worth up to Rs0.5 million and 15 percent on above Rs0.5 million

    — 4.5 percent tax on sale of goods by persons except companies

    — 10 percent tax on provision of services by persons except companies

    — 7.5 percent tax on contracts executed by person except companies

    — 15 percent tax on prize money of prize bonds

    — 12 percent tax on commission

    — Annual token fee of vehicles from Rs800 to Rs10,000

    — Withholding tax on vehicle registration from Rs7,500 to Rs250,000

    — No tax on cash withdrawal of more than Rs50,000 from banks

    — No tax on bank transactions (cross cheque, pay order, demand draft etc.)

    — One percent tax on purchase of property

    — 10 percent tax on sale by auction

    — Tax on mobile phone import from Rs70 to Rs200

    — 10 percent tax deduction for payment against advertisement to non-resident person.

    The FBR also highlighted drawback in shape of double rate of tax on following transactions in case of not filing return by due date:

    — Almost double tax rate

    — 11 percent tax on imports (raw material)

    — 12 percent on imports (commercial)

    — 30 percent tax on dividends

    — 20 percent tax on bank and saving scheme profit worth up to Rs0.5 million and 30 percent on above Rs0.5 million

    — 9 percent tax on sale of goods by persons except companies

    — 20 percent tax on provision of services by persons except companies

    — 15 percent tax on contracts executed by person except companies

    — 30 percent tax on prize money of prize bonds

    — 24 percent tax on commission

    — Annual token fee of vehicles from Rs1600 to Rs20,000

    — Withholding tax on vehicle registration from Rs15,000 to Rs500,000

    — 0.6 percent tax on cash withdrawal of more than Rs50,000 from banks

    — 0.6 percent tax on bank transactions (cross cheque, pay order, demand draft etc.)

    — Two percent tax on purchase of property

    — 20 percent tax on sale by auction

    — Tax on mobile phone import from Rs140 to Rs400

    — 20 percent tax deduction for payment against advertisement to non-resident person.

  • Late return filers may get ATL status after payment of surcharge

    Late return filers may get ATL status after payment of surcharge

    ISLAMABAD: Persons, who fail to file their income tax return by due date, may be included into the Active Taxpayers List (ATL) after payment of surcharge.

    Inclusion in ATL is mandatory to avail reduced rate of withholding tax. Through Finance Act, 2019 the rates of withholding tax have been increased 100 percent for those persons who have either failed to file annual return or filed return after due date.

    This means only those individuals or companies will get ATL status who filed their annual income tax returns by due date.

    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:

    Company Rs20,000

    Association of Persons: Rs10,000

    Individuals: Rs1,000

    The FBR said a that 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.

    Only after the payment of surcharge will the name of the late filer become part of ATL.

  • Finance Bill 2019: Money withheld of persons not appearing on ATL to be treated as unexplained

    Finance Bill 2019: Money withheld of persons not appearing on ATL to be treated as unexplained

    ISLAMABAD: The government has taken harsh stance against persons having taxable income but not on the tax roll.

    In this regard the law has been introduced under which persons not appearing on the Active Taxpayers List (ATL) and their amount withheld on transactions will be treated as unexplained.

    Commissioners of Inland Revenue, Federal Board of Revenue (FBR) have been empowered to make assessment of income of such persons and issue notices.

    A budget commentary issued by EY Ford Rhodes Chartered Accountants said that the concept of filers and non-filers was introduced in the Ordinance through the Finance Act, 2014.

    Through this concept a distinction was created between person who duly filed their tax returns and the remaining persons who were considered non-filers.

    The basic intention of the legislature was to obtain documentation and compel the non-filers to become registered tax filers.

    Over the years, major distinction was introduced in the rates of tax withholding under various sections of the Ordinance to make the non-filers suffer heavy withholding of tax so that they may be compelled to ultimately come within the tax net and file proper declaration of their tax returns with FBR.

    However, over the last five years, it has been observed that the percentage of increase in tax filers has not been significant and the numbers of tax filers is still quite low as compared to other comparable economies.

    The present government has been talking about broadening of the tax base more strongly and the Prime Minister himself has on many occasions indicated his strong desire to significantly broaden the tax base.

    It is now proposed to enact a separate schedule in the Ordinance to deal with persons who are not on the ATL i.e. who are not in the tax net and are not filing their declaration so far.

    In this connection, Section 100BA has been proposed which governs the collection or deduction of advance income tax, computation of income and tax payable by such persons.

    The Tenth Schedule generally provides that where ever tax is required to be deducted or collected under any provisions of the Ordinance from a person whose name is not appearing in the ATL, the rate of withholding will be doubled in case of deduction or collection from such persons.

    However, the schedule provides exception in case of the following payments –

    (1) Salary;

    (2) Payment to non-residents other than on account of royalty, fees for technical service, insurance premium

    (3) Payment to a Permanent Establishment in Pakistan of a non-resident person other than on account of providing services or contract or any general payment to a non-resident.

    (4) Payment on account of exports

    (5) Tax deductions from payment of rent

    (6) Tax deductions from withdrawal of balance from pension funds

    (7) Tax collection from cash withdrawal from a bank

    (8) Tax collection on banking transactions

    (9) Collection of tax by NCCPL

    (10) Collection of tax on domestic or commercial electricity consumption

    (11) Tax collection from steel melters

    (12) Purchase of air tickets

    (13) Functions and gatherings

    (14) Cable operators

    (15) Educational institutions

    (16) Dealers and commission agents

    (17) Purchase of international air tickets

    (18) Non-cash banking transactions

    (19) Payment for use of machinery and equipment

    (20) Remittance of education related expenses

    (21) Extractions of minerals

    (22) Tobacco

    The Schedule seeks to provide a mechanism where a withholding agent is satisfied that the person not appearing in the ATL is not required to be a tax filer and hence the deduction of tax should not be attracted from payments to such persons.

    In such a situation, the payer would be required to furnish an application to the Commissioner in writing electronically providing the details of the person from whom he intends not to collect tax, giving details about the payee and the nature of payment and the basis on which he is not liable to be a tax filer.

    The Commissioner on such application would decide the matter within 30 days and direct the payer accordingly.

    Assessment of such person

    — The Schedule requires the Commissioner to undertake a provisional assessment of the person from whom tax has been withheld under the Schedule but he has failed to file the return of income within the prescribed time or extended time.

    — The provisional assessment is proposed to be carried out within 60 days of the due date of filing of return. The income of such person in such a case shall be imputed on the basis of tax that has been withheld at source and shall be treated as un-explained income.

    — Once the provisional assessment has been finalized and served on such person, he can file a return of income within 45 days of the service of the provisional order. In which case the provisional assessment shall stands abated.

    — If a return of income is not filed within 45 days of service of order of provisional assessment, then such assessment is to be treated as final assessment order. In such a case the Commissioner is also proposed to be empowered to pass an order within 30 days of finalization of assessment for imposition of penalty on account of non-furnishing of return and concealment of income.

    — The Schedule also seeks to empower the Commissioner to amend an assessment on the basis of definite information from an audit or otherwise.

    Consequent to the proposed enactment of the Schedule, to withdraw concept of filers and non-filers from various provisions of the Ordinance, several amendments have been proposed in various withholding provisions to remove reference to Filer and non-Filer.

    Similarly the restrictions introduced on purchase of immovable property and moveable property on Non-filers in Section 227C are also proposed to be abolished.