FBR allows late returns without surcharge

The Federal Board of Revenue has put forward draft rules that would allow late income tax filers to enter the Active Taxpayers' List without paying a surcharge. Late filing here covers returns submitted after the original due date or an extended deadline. Dawn reported that the draft amendments to the Income Tax Rules 2002 were issued on Tuesday through SRO1690, and feedback from stakeholders is being sought within one week before the rules are finalised.

The surcharge waiver is conditional. Eligible individuals must give an undertaking through the IRIS portal not to buy or otherwise take on any title or beneficial right over property for six months. The period runs from the date on the IRIS electronic acknowledgement that follows successful filing of the new Form ATL-U.

The FBR would be able to check compliance using its own records as well as information from authorities, agencies, registries, financial institutions or other lawful sources. If records show a property acquisition within the six months, the taxpayer would first get an electronic hearing. A proven breach would withdraw the surcharge-free status from the date of violation, after which the existing rules for late filers would apply.