ISLAMABAD – Imagine missing tax deadline and still getting ticket into Pakistan’s Active Taxpayers’ List without paying Rs25,000 surcharge. There’s just one catch: for the next six months, your property plans would have to stay on hold. That’s the striking new option the FBR has put on the table for late filers.
Late tax filers may soon get major relief from Federal Board of Revenue (FBR), but the proposed concession comes with a condition that could put their property plans on hold for six months.
FBR proposed allowing individuals who miss income tax return deadline to enter the Active Taxpayers’ List (ATL) without paying the Rs25,000 surcharge, provided they agree not to acquire property or obtain an ownership or beneficial interest in property for six months. The proposed change has come just as the deadline approaches and could offer a new route for taxpayers who file their returns after the prescribed or extended deadline.
A late-filing individual would be able to seek surcharge-free ATL status by submitting a special undertaking through Form ATL-U on the IRIS portal under Section 182A(3). But there is a significant catch. The taxpayer would have to formally undertake that, for six months, they will not purchase or acquire any property and will not obtain ownership or a beneficial interest in any property.
The six-month period would not simply begin when the taxpayer files the return. It would start from the date recorded on the electronic acknowledgement generated by IRIS after the successful submission of Form ATL-U.
The proposed mechanism would also give the tax authority broad powers to check whether taxpayers honour their undertaking. FBR could use information obtained from relevant authorities, agencies, property registries, financial institutions and other legally available sources to determine whether a taxpayer has acquired an interest in property during the restricted period.
If the authorities find evidence of a property acquisition, the taxpayer would first be given an opportunity to explain the transaction. However, if the FBR establishes that the undertaking was breached, the special relief would be withdrawn from the date of the violation.
The taxpayer’s ATL position would then be determined under Rule 81B(2A), the existing provision dealing with the status of late filers.
FBR has also proposed formally introducing Form ATL-U by adding Part XV to the First Schedule of the Income Tax Rules, 2002.
The proposal was issued by the FBR on October 6, 2026, and has not yet become law. The tax authority has given stakeholders seven days to submit objections or suggestions before the proposed amendment is considered for finalization.
FBR’s official website lists the draft as S.R.O. 1691(I)/2026, concerning amendments to Rule 81B and the First Schedule of the Income Tax Rules, 2002. The proposed move effectively offers late filers a choice: pay the Rs25,000 surcharge or seek surcharge-free ATL status by accepting a six-month restriction on property acquisition.
If approved, the measure could provide a fresh incentive for delinquent taxpayers to enter the ATL while giving the FBR an additional mechanism to monitor compliance.
