The Federal Board of Revenue (FBR) has proposed a new condition that could restrict certain late tax filers from purchasing or acquiring property for six months if they seek inclusion in the Active Taxpayers’ List (ATL) without paying the standard surcharge.
Under draft amendments to the Income Tax Rules, 2002, issued through SRO 1690, individuals who file their income tax returns after the deadline may be allowed to enter the ATL without the usual surcharge. However, they would be required to submit an undertaking confirming that they will not purchase property, acquire ownership, or obtain a beneficial interest in property for a period of six months.
The proposed six-month property restriction is not yet final. The FBR has issued the amendments in draft form and invited stakeholders to submit their feedback within one week. The proposal could therefore be revised, modified, or withdrawn before a final notification is issued.
The condition would also not necessarily apply to every taxpayer who files a return late. Based on the reported proposal, the restriction is specifically linked to late filers seeking ATL status without paying the applicable surcharge. Taxpayers who use the existing surcharge-based route would not be subject to the proposed property undertaking under the draft rules.
The proposed undertaking covers more than an ordinary property purchase, extending to the acquisition of ownership and beneficial interests in property. However, the draft does not clearly explain how the restriction would be enforced or whether transactions involving inheritance or gifts would be covered.
Further details are expected if the FBR finalises and formally notifies the proposed amendments.
