The Federal Board of Revenue (FBR) has proposed a new facility that could allow individual taxpayers who file their income tax returns late to join the Active Taxpayers’ List (ATL) without paying the ATL surcharge.
But there is a catch. Taxpayers using the proposed facility would have to avoid buying or acquiring property, or obtaining ownership or beneficial interest in any property, for six months after submitting an undertaking. The FBR has given stakeholders seven days to submit objections or suggestions on the proposal.
The FBR issued the draft amendment to the Income Tax Rules, 2002, on October 6, 2026. The proposed changes would introduce new provisions under Rule 81B for individual taxpayers who file their latest income tax return after the original or extended deadline.
Under the proposed mechanism, eligible taxpayers could submit an undertaking through a new Form ATL-U on the IRIS portal under Section 182A(3).
Once the undertaking is successfully submitted, the taxpayer could be included in the ATL without paying the surcharge normally applicable to late filers.
The restriction would remain in place for six months from the date of the electronic acknowledgement issued by IRIS after the successful submission of Form ATL-U.
During this period, the taxpayer would have to refrain from purchasing or acquiring property or securing any ownership or beneficial interest in property.
The FBR would be able to verify compliance with the undertaking through information obtained from relevant authorities, agencies, registries, financial institutions and other available sources.
If the FBR identifies a possible violation, the taxpayer would be given an opportunity to present their case.
If the violation is confirmed, the taxpayer would lose the benefit of joining the ATL without paying the surcharge from the date of the violation. Their ATL status would then be determined under the existing Rule 81B(2A).
The proposed amendments also provide for the introduction of Form ATL-U through Part XV of the First Schedule.
The form would contain information including the taxpayer’s name, CNIC or NTN, tax year, date of return filing, IRIS acknowledgement or reference number, and the date on which the undertaking was submitted.
The proposed changes are not final at this stage. The FBR has invited objections and suggestions within seven days of issuing the draft.
If approved, the proposal would give late-filing individual taxpayers a new route to enter the ATL without paying the surcharge, subject to the six-month restriction on acquiring property.
