Key Takeaways
- FBR suggests a new way for late filers to join ATL without a fine.
- Taxpayers must undertake not to purchase property for six months.
- Proposal open for objections and suggestions for seven days.
The Federal Board of Revenue (FBR) has proposed a new mechanism for taxpayers who file their income tax returns late to join the Active Taxpayers’ List (ATL) without paying the Rs. 25,000 surcharge.
According to sources, late filers can now submit an undertaking through Form ATL-U in IRIS under Section 182A(3) to be included in the ATL without the surcharge.
However, taxpayers must agree not to purchase or acquire any property, or obtain ownership or beneficial interest in any property, for six months after submitting the undertaking.
The six-month restriction will commence from the date of the electronic acknowledgement generated after the successful submission of Form ATL-U through IRIS.
FBR will verify the undertaking using information from relevant authorities and financial institutions. If a violation is found, the taxpayer will be given an opportunity to explain the matter.
If the violation is established, the benefit of joining the ATL without paying the surcharge will be withdrawn from the date of the violation, and the taxpayer’s ATL status will be determined under Rule 81B(2A).
The draft amendment, which includes new sub-rules (2B), (2C), and (2D), was issued on October 6, 2026, and stakeholders have seven days to submit objections or suggestions.
FBR is inviting public feedback on the proposed changes to the Income Tax Rules, 2002, to ensure that the new mechanism is fair and effective.
The proposal aims to provide a new route for late filers to enter the ATL without the financial penalty, while maintaining the integrity of the tax system.
