ISLAMABAD: Around 200,000 income tax return filers paid surcharge to get their names in Active Taxpayers List (ATL) during past 15 days.
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KTBA recommends daily update of ATL file; banks not relying on online verification
KARACHI: Karachi Tax Bar Association (KTBA) has advised the Federal Board of Revenue (FBR) to update Active Taxpayers List (ATL) on daily basis instead weekly as banks were not relying on the online verification of the active taxpayers for purpose of withholding tax deduction.
The KTBA on Saturday said that many taxpayers are making payment of surcharge U/s.182A of the Income Tax Ordinance, 2001 (Ordinance) for inclusion of their names in the ATL and upon the payment the status of taxpayer is immediately updated in the ATL on the web portal.
However, the excel file available on the FBR web portal of is not being updated which is causing severe problems to the taxpayers as far as withdrawals from banks are concerned.
“The banks are not relying on the online verification available on the web portal of FBR,” the KTBA said.
The KTBA suggested that the excel file (lists) available on the web portal of FBR is updated on daily basis and the banks are also informed to rely on the online verification before withholding deducting the tax on banking transactions in order to facilitate the taxpayers.
The tax bar said that it had received many complaints that where manual extensions were filed/submitted and where no reply was received (whether granted or refused) and the returns were filed within the time applied for; the names of such taxpayers are also not appearing in the ATL though such cases are liable to be treated as filed within the time allowed.
The KTBA advised that where taxpayers have filed the manual extensions within time and where the returns have been filed within the time applied for, the names of such taxpayers should be included in the ATL and the ATL be updated immediately without payment of surcharge as prescribed U/s.182A of the Ordinance.
There are several instances where the taxpayers have opted rightly to file their returns, in time, manually (paper returns) as they were legally not bound to file their returns electronically, their names are also not appearing in the ATL for which we are being informed by our members continuously. We feel that the manual returns have not been digitized and such taxpayers are facing severe problems due to non-appearance of their names in the ATL.
The tax bar suggested that where taxpayers have rightly filed/submitted their returns manually (paper turns), the names of such taxpayers should be included in the ATL forthwith for their facilitation.
The KTBA also received complaints from members and have also noticed that there are instances where extension applications have been submitted via IRIS within time and the same are appearing in the outbox of IRIS unattended by the concerned Commissioners and the returns have also been filed within the time applied for but their names are not appearing in the ATL.
The tax bar said that there is no fault of the taxpayers who have filed the extensions in time that remains unattended and the returns have also been filed within the time applied for.
It suggested that where taxpayers have applied for extensions on IRIS in time, whose applications have remained unattended and the returns have been filed within the time, the names of such taxpayers should also be included in the ATL forthwith for their facilitation
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Income tax return filing hits record high of 3.11 million, reveals last weekly ATL-2019
ISLAMABAD: The annual income tax return filing hit all time high of 3.11 million, according to the last weekly updated Active Taxpayers List (ATL) for Tax Year 2019 issued by Federal Board of Revenue (FBR).
The FBR updated the last weekly ATL for tax year 2019 on February 22, 2021 and received record number on the basis of return filed up to February 21, 2021.
The FBR is scheduled to launch ATL for tax year 2020 on March 01, 2021. Therefore, more returns may be filed for tax year 2019 by February 28, 2021.
The FBR launches ATL every year on March 01 which carries names of those persons filed their income tax returns for immediate past tax year.
Previously, the FBR received 2.8 million income tax returns for tax year 2018 up to February 16, 2020. This shows an 11 percent increase in return filing when compared the two periods.
The FBR on February 24, 2021 announced it will launch the ATL for tax year 2020 on March 01, 2020 on the basis of income tax returns filed by due date or returns filed after due date (till February 28, 2021) with payment of surcharge.
The FBR received income tax returns around 2.52 million for tax year 2020 up to January 30, 2021. However, this number will increase as the ATL 2020 will remain applicable till February 28, 2022.
The revenue body said that persons included in the ATL have various benefits such as exemption from withholding tax at the time of cash withdrawal. Further, other banking transactions and payment of educational fees are also exempted from withholding tax for those persons whose names are on the ATL.
Similarly, those persons appeared on the ATL are entitled to pay reduced rate of withholding tax in making transactions including imports, profits, services, contracts, profit on debt, prizes, purchase of motor vehicles and immovable properties etc.
The FBR said that names of those persons would be included in the ATL-2020 who filed their annual returns within given deadline or filed within extended date given by Commissioner Inland Revenue.
The revenue body said that the ATL is being updated on weekly basis and available on the official website and mobile applications.
Those individuals and companies that failed to make compliance of return filing by due date or extended date given by commissioners Inland Revenue would require to pay surcharges for appearance on the ATL.
The rate of surcharge is Rs20,000 for corporate entities and Rs10,000 for Association of Persons, the FBR added.
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Income tax return filing touches new peak at 3.03 million
ISLAMABAD: Income tax return filing hit record high at 3.03 million for tax year 2019, according to weekly Active Taxpayers List (ATL) updated on Monday.
The FBR issued the weekly ATL – 2019 updated on the basis of returns filed up to January 10, 2021.
The ATL-2019 will remain applicable till February 28, 2021 as the FBR will issue new ATL for tax year 2020 on March 01, 2021.
The return filers including salaried persons, business individuals, Association of Persons (AOPs) and companies can check their names on the ATL by visiting How to check ATL status?
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).
A taxpayer should check his/her status on the ATL before making transactions in order to avail reduced rate of tax rates.
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Updated ATL: FBR receives record 2.96 million returns
ISLAMABAD: The filing of income tax return has reached a new peak of 2.96 million, according to the updated Active Taxpayers List (ATL) issued by Federal Board of Revenue (FBR) on Monday.
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FBR asks taxpayers to update profile to avoid penalty
ISLAMABAD: Federal Board of Revenue (FBR) has asked taxpayers to update their profile with necessary information by December 31, 2020 in order to avoid fine and penalty.
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Above 120,000 income tax returns added to ATL during lockdown
ISLAMABAD: The tax authorities have received above 120,000 income tax returns since launch of new Active Taxpayers List (ATL) on March 01, 2020 and during ongoing lockdown to prevent spread of coronavirus, according to updated list issued June 01, 2020.
The updated ATL for tax, around 120,000 taxpayers filed their annual returns for tax year 2019 since March 01, 2020.
The number of active taxpayers increased to over 2.65 million as of May 31, 2020 from 2.53 million returns as shown in new ATL for tax year 2019.
The FBR updates ATL every week and on an average the revenue body receives around 20,000 returns per week. However, due to lockdown in the country after the outbreak of coronavirus the number of financial transactions had fallen drastically.
It is worth mentioning that additional 120,000 income tax returns have been filed after the due date. The due date for filing income tax returns for tax year 2019 was February 28, 2020.
As per law it was mandatory for individuals, Association of Persons (AOPs) and corporate entities to file annual return in order to avail reduced rates of withholding tax on certain transactions.
Filing return after due date a person is required to pay surcharge in order to appear on ATL besides paying late filing penalty.
The sources said changes in law through Finance Act, 2019 were also compelling to file their returns. Through Finance Act, 2019, Tenth Schedule was inserted to Income Tax Ordinance, 2001 under which a person not appearing on the ATL would be liable to pay 100 percent additional withholding tax while making certain transactions.
Prior to this change the persons not filing income tax returns were liable to pay enhanced rate of withholding tax.
Previously, the law provides 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.
A senior FBR official said that such tax regime had created a misconception that a non-filer can go scot free by choosing not to file income tax return.
The measure are 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 regime did not provide for any legal framework to ensure filing of return by such non-filers, the official said.
In order to remove the aforesaid misconception, the concept and the term of ‘non-filer’ was abolished from the statute, the official added.
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Persons not on new ATL to pay 100% additional withholding tax
KARACHI: Persons who have failed to submit their annual income tax returns and declaration of assets for tax year 2019 will pay 100 percent additional withholding tax on certain transactions, sources in Federal Board of Revenue (FBR) said on Monday.
They said that those taxpayers availing the benefit of reduced rate of withholding tax on the basis of returns filed for tax year 2018 would not more eligible.
The FBR issued new Active Taxpayers List (ATL) for tax year 2019 including names of those return filers who filed their returns up to February 29, 2020.
The new ATL included name of 2.53 million taxpayers who filed their returns for tax year 2019. These taxpayers were salaried persons, business individuals, Association of Persons (AOPs) and companies.
The FBR had extended the last date for filing income tax returns and declaration of assets up to February 28, 2020.
The sources said that through Finance Act, 2019 a new 10th Schedule to Income Tax Ordinance, 2001 was introduced under which the FBR imposed 100 percent additional withholding tax on those persons whose name were not on the ATL.
Previously, the law provides 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 has 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 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” was abolished from the statute, wherever occurring.
In its stead a separate Schedule is being 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 o 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.
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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.
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Late filers to get ATL status only after surcharge payment
KARACHI: Late filers will only get their names on the Active Taxpayers List (ATL) after payment of penalty or surcharge.
It has been observed that many taxpayers were filing their income tax returns for tax year after the last date of August 09, 2019 but they could not get their name on the ATL.
The taxpayers noticed that their returns were filed and shown on the completed task but their names were not appeared on the ATL.
However, this issued was resolved when they deposited penal amount to the Federal Board of Revenue (FBR).
Officials at 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.”
In order to make normal payment through electronic mode, the officials said that in the e-Payments tab, a person will access Create Payment and then select Income Tax Annual Return option.
The resulting selection will lead you to Income Tax e-Payment page. On this page a payment slip (PSID) will be created by:
Selecting the relevant Tax Year
Typing the Tax amount due
Selecting the mode of payment
Clicking the create button on the bottom of the page Confirm the e-Payment created. This will successfully create the e-Payment slip.
The e-Payment slip can be deposited in any National Bank (NBP)/State Bank (SBP) branch. Select the nearest city where a taxpayer wants to deposit the payment slip from the drop down list.
Click the print button to download the PSID on your computer. Deposit the PSID in any of the available branches of the city of your choice.