ISLAMABAD – The Federal Board of Revenue (FBR) has proposed a new option for late tax filers. The proposal could allow them to join the Active Taxpayers’ List without paying the Rs. 25,000 surcharge. The proposal comes with a condition for individual taxpayers. Late filers would have to agree not to purchase or acquire property for six months.
They would also be restricted from obtaining ownership or beneficial interest in any property. The restriction would begin after submitting the required undertaking. The FBR issued the draft amendment to the Income Tax Rules, 2002, on October 6, 2026. The proposed changes would amend Rule 81B.
The draft introduces new sub-rules under the existing provision. These include sub-rules 2B, 2C and 2D. Under the proposal, late individual taxpayers could submit an undertaking through IRIS. The undertaking would be submitted using a new Form ATL-U. The facility would apply to taxpayers who file their latest income tax return after the due date. It would also cover taxpayers filing after an extended deadline.
After submitting the undertaking, taxpayers could be included in the Active Taxpayers’ List. They would not have to pay the proposed Rs. 25,000 ATL surcharge. The six-month restriction would begin from the electronic acknowledgement date. This acknowledgement would be generated after successful submission of Form ATL-U through IRIS.
During this period, taxpayers could not purchase or acquire property. They would also be unable to obtain ownership or beneficial interest in property. The FBR would have the authority to verify compliance with the condition. It could use information from government agencies, registries and financial institutions.
Other available sources could also be used for verification. If a taxpayer is found to have acquired property, they would receive an opportunity to explain. If the violation is established, the taxpayer could lose the benefit. Their ATL status would then be determined under the existing rules.
The proposed amendment also seeks to introduce Form ATL-U formally. The form would be added through Part XV of the First Schedule.
Taxpayers would need to provide several details in the form. These would include their name, CNIC or NTN and relevant tax year. The form would also require the return filing date. IRIS acknowledgement details and the undertaking date would also be included.
The proposal is not final yet. The FBR has invited stakeholders to submit objections and suggestions within seven days. The consultation period will allow stakeholders to review the proposed changes. The amendment could then move toward finalization after considering the feedback.
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If approved, the proposal would provide late filers with another route into the ATL. They could avoid the Rs. 25,000 surcharge by accepting the six-month property restriction. The proposed measure is therefore aimed at offering relief to late filers. However, its final form will depend on the consultation process and approval.
