ISLAMABAD” The Federal Board of Revenue (FBR) has introduced amendments to the Income Tax Rules, 2002, providing relief to individuals who file their income tax returns after the deadline.
Under the revised rules, late filers can now be included in the Active Taxpayer List (ATL) without paying the applicable surcharge. However, they must submit an electronic undertaking through the FBR’s IRIS portal, agreeing not to purchase or acquire any property for six months.
The FBR has introduced a new form specifically for individuals filing their income tax returns late. Those seeking inclusion in the ATL without paying a surcharge will be required to submit this form through the IRIS online portal.
The form includes details such as the taxpayer’s national identity card number, the relevant tax year and information about the filing of the income tax return.
Along with these details, applicants must provide an electronic undertaking confirming that they will not purchase or acquire any property during the following six months.
The FBR has clarified that individuals who submit this undertaking will be prohibited from purchasing or acquiring property throughout the specified period.
FBR to take action over property purchases
The tax authority will be authorised to take action if it discovers that an individual has purchased or acquired property during the six-month restriction period.
However, the FBR will first provide the taxpayer concerned with an opportunity to explain the transaction before proceeding with action.
If a violation of the undertaking is established, the exemption from the late-filing surcharge will be withdrawn. In such cases, the individual’s inclusion in the Active Taxpayer List will be governed by the standard rules.
The condition effectively links the relief from the surcharge to compliance with the six-month restriction on property purchases.
New automated system introduced
Separately, the FBR has introduced a new automated system to examine taxpayers’ income tax returns. Under the system, tax returns will be reviewed electronically to identify errors or discrepancies in the information submitted by taxpayers.
If the automated review detects any mistake or inconsistency, the concerned taxpayer will be notified online.
The FBR has also clarified that taxpayers will be given an opportunity to provide an explanation or clarification before any action is initiated.
The amendments introduce a new facilitation mechanism for late tax return filers while establishing conditions for receiving surcharge relief and strengthening the electronic review of income tax returns.
