According to the last weekly updated Active Taxpayers List (ATL) for the tax year 2019 released by the Federal Board of Revenue (FBR), the filing of annual income tax returns has so far stood at 3.11 million.
The FBR updated the last weekly ATL for the tax year 2019 on February 22, 2021 and obtained a record number based on the returns filed by February 21, 2021. FBR is set to launch ATL for Tax Year 2020 on March 1, 2021. Therefore, more returns for the tax year 2019 can be filed by February 28, 2021.
The FBR launches the ATL on March 1 each year, which lists individuals who file income tax returns immediately after the previous tax year. Earlier, the FBR had received 2.8 million income tax returns for the tax year 2018 as of February 16, 2020. This represents an 11% increase in return filing over the two periods.
The FBR announced on February 24, 2021 that it will submit to the ATL for the tax year 2020 on the basis of income tax returns submitted within due date or within extension period allowed by FBR or after due date up to March 1, 2021 with payment of the penalty amount for late filing of tax returns for tax year 2020 (till February 28, 2021) on the basis of income tax returns submitted after due date up to February 28, 2021.
FBR received approx 2.52 million income tax returns up to 30 January 2021 for the tax year 2020. However, this number will increase as ATL 2020 runs until February 28, 2022.
Benefits of inclusion of names in Active Taxpayer List (ATL)
Taxpayers having names in Active Taxpayer List (ATL) have various benefits such as exemption from withholding tax at the time of cash withdrawal. Further, other banking transactions and payment of tuition fees are also exempt from withholding tax for those whose names are in the Active Taxpayers List (ATL).
Similarly, individuals who entitled to pay a lower rate of withholding tax on transactions including imports, profits, services, contracts, interest on loans, rewards, purchase of motor vehicles and immovable property. The FBR said the names of those who submitted their annual returns within the due date or filed within the extended date given by the Commissioner Inland Revenue would be included in the Active Taxpayer List (ATL) 2020 on 1st March 2021.
Penalty for inclusion of name in ATL
Individuals and companies who fail to comply with the return filing as per the date given by the Commissioner of Inland Revenue or the date of extension they now also require to pay a surcharge to appear in the ATL. The FBR added that the surcharge rate is Rs 20,000 for corporate companies and Rs 10,000 for the Association of Persons / Partnership business and Rs 1,000 for Individuals.
Payment of Penalty for which Tax Year ?
FBR has stopped to issue penalty challans for payment and inclusion of names in ATL for Tax Year 2019. Now, penalty challans only available for the Tax Year 2020. From 1st March, 2021 to 28th February 2022 for inclusion of name in active taxpayer list. Now, Tax return for tax year 2020 needs to submit along with payment of penalty.