The Federal Board of Revenue (FBR) has announced relief for people who submit their income tax returns after the deadline.
Eligible taxpayers can join the Active Taxpayers List (ATL) without paying the required surcharge.
However, they must agree not to purchase or acquire property for six months.
The FBR has introduced these changes through amendments to the Income Tax Rules, 2002.
How late filers can get surcharge relief?
Taxpayers who file their returns late must submit an electronic undertaking through the FBR’s IRIS portal.
The authority has introduced a new form called ATL-U, for this purpose.
Individuals agree not to purchase or acquire any property for six months from the submission date, by submitting the form.
The FBR will verify compliance using information from banks and other available sources.
However, if a taxpayer breaks the agreement, the authority will seek an explanation before taking action. The surcharge exemption will be withdrawn after violation is confirmed.
The taxpayer’s inclusion in the ATL will then follow the normal rules.
The new arrangement offers eligible late filers a way to obtain active taxpayer status without paying the surcharge.
Automated system to check tax returns
The FBR has also introduced a new system to identify errors and differences in income tax returns.
The system operates under Rule 38B, added to the Income Tax Rules, 2002.
It will automatically examine returns and identify possible factual mistakes, legal errors and differences in reported information.
Taxpayers will receive online notices through the IRIS portal when problems are detected.
They will have at least seven days to explain or correct the issues before any legal or penalty action begins.
The relevant Inland Revenue officer will review the taxpayer’s explanation and decide whether further action is necessary.
All notices, responses and actions will be recorded on a dedicated dashboard.
