How to become active tax filer in FBR

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How to Become Active Tax filler in FBR

What is Active Taxpayer List (ATL)

Active taxpayer list is a record of taxpayers who have submitted their tax returns of previous years. It’s updated on the basis of previous years submission of tax returns.

The active taxpayers list updates every Monday on FBR’s portal. You can check online on FBR’s website after submission of tax return of previous year. If last date for submission of tax return of previous year ended then penalty will have to be paid for becoming active tax filer.

How to include name in ATL

For example, if status of active tax filer is being updated then income tax return for the tax year 2019 is to be submitted along with penalty of Rs 1,000 in case of individual, Rs 10,000 for AOPs and Rs 20,000 in case of Private / public Company.

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Application of Tax Year 2019

Tax year 2019 will be applicable up to the due date for filling of tax return for tax year 2020. After due date of submission of tax return for tax year 2020, the active tax filer status will update on the submission of tax return for tax year 2020 along with prescribed penalty.

Penalty for becoming active tax filer

PersonSurcharge (PKR)
Company20,000
Association of Persons10,000
Individuals1,000
Amount of Penalty for becoming active tax filer in FBR

Reference

According to section 182A(a) of the income tax ordinance 2001: “[182A. Return not filed within due date.—(a) not be included in the active taxpayers’ list for the year for which return was not filed within the due date[:]
[Provided that without prejudice to any other liability under this Ordinance, the person shall be included in the active taxpayer ‘ list on filing return after the due date, if the person pays surcharge at Rupees-
(i) twenty thousand in case of a company;
(ii) ten thousand in case of an association of persons;
(iii) one thousand in case of an individual.]”

ACTIVE TAXPAYER STATUS UPDATION IN SPECIAL CASES (COMPANY, ASSOCIATION OF PERSONS, JOINT ACCOUNT HOLDERS, MINOR CHILDREN)

According to Income Tax Rules, 2002

The name of a Company and Association of Persons (AOPs) will update in list of active taxpayers automatically if these are incorporated or registered after 30th Day of June of the tax year, which year is necessary for submission of tax return for updating of status of active taxpayer and filer.

In Case of Joint Account Holders, the status of the bank account will be changed to active taxpayer and filer if any one of the account holder becomes active taxpayer and filer after submission of tax return of the specific tax year. Such Joint Account will enjoy all the benefits of filer in income tax.

If a minor person holds a bank account, then in this case minor’s parents, guardians and any persons depositing amount in minor’s bank account will have to comply the requirements of becoming an active taxpayer and filer.

PAYMENT OF PENALTY / SURCHARGE FOR UPDATING OF ACTIVE TAXPAYER LIST

Every year there is a due date for submission of tax returns, but if any person fails to submit his tax return within due date then he has to pay surcharge as per the rates mentioned above. Then there names will update in the active taxpayer and filer. For Instance, the late filers of Income Tax Return for Tax Year 2019 can pay Surcharge or penalty as explained under section 182(A) of Income Tax Ordinance 2001. Select Payment Nature “Misc” head during preparation of PSID.

After Payment of the surcharge the name of the person will update as active tax filer.  

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How to Check Active Taxpayer Status

Active Taxpayer status can be checked in the following three (3) ways:

1-    Verification by using Online Portal (e.fbr.gov.pk) in real time.
2-     Active Taxpayer List (ATL) available on the portal of FBR
3-    Checking of Active Taxpayer status via SMS

Process of Checking of Active Taxpayer status via SMS

Individuals:

Type “ATL (space) 13 digits Computerized National Identity Card (CNIC)” and send to 9966.

AOP and Company:

Type “ATL (space) 7 digits National Tax Number (NTN)” and send to 9966.

Process of Checking of AJ&K Active Taxpayer via SMS:
Individual,

type AJKATL (space) CNIC (without dashes). Send it to 9966.

AOP and Company:

Having NTN AJKATL (space) 11 digit NTN (without dashes). Send it to 9966.

Benefits of being active tax filer / taxpayer in FBR

  • Less rates of tax deduction at source by banks on both profits and cash withdrawals
  • Lower rate of withholding tax on registering and transferring vehicles
  • Benefit of Lower rate of tax on buying and selling of property
  • Having benefit of Lower tax rate on capital gains on sale of securities
  • Lower tax on dividend income
  • Lower tax rate of withholding on prize bond winnings
  • Active Taxpayer can claim refund of advance income tax already paid in excess.
  • Exemption from withholding / advance income tax on educational fees / school fees for income tax filers.
  • Income tax rate under section 148, at the import stage is increased by 100% in case importer is non filer in income tax.
  • Rate of Income tax on local supply of goods is increased by 100% in case supplier is non filer in income tax.
  • Income tax rate under section 233, as commission and brokerage is increased by 100% in case broker is non filer in income tax.

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