How to become A filer and included in Federal Board of Revenue's (FBR) Income Tax Active Taxpayers List

Concept of filer and non-filer taxpayer in Pakistan

Primary condition for becoming a filer in terms of Income Tax Ordinance 2001 which deals with income tax matters in Pakistan is that the taxpayer’s name should appear in the “Active Taxpayers List”. Section 2(23A) of the Income Tax Ordinance 2001 reads as under:

“filer” means a taxpayer whose name appears in the active taxpayers’ list issued by the Board from time to time or is holder of a taxpayer’s card;]”

This means that only the taxpayers’ whose name appear in Active Taxpayers List would be considered as ‘filers’

Active taxpayers List(ATL) is prepared by the Federal Board of Revenue and uploaded on the website of official Federal Board of Revenue. Everyone can be downloaded ATL from the following link:

http://www.fbr.gov.pk/ActiveTaxpayersList.aspx

Earlier, the Active Taxpayers List was updated on 15th of every month. However, considering the problems faced by the taxpayer now the Active Taxpayers Limit is updated on weekly basis. AT 12.00 of every Sunday the list is updated and uploaded in the next morning of Monday.

All the Banks, government departments and other withholding agents download the said list on weekly basis and treat the taxpayers ‘filers’ and ‘non-filers’ according to this list.

For further details visit:


How to know that you are filer and your name is in Active Taxpayers List (ATL)

You can check whether you are a filer or non-filer by:

a. downloading the list from FBR website

b. Type ATL and after one space your CNIC No. (without dashes) and sent it 9966. In a minute you will receive the message from 9966 that your name you are active taxpayer. For example write "ATL 3520211111111".

b. Visit official website of e.fbr.gov.pk and from "Search Taxpayers" tab select "Active Taxpayers(IT)". In the new window type your CNIC No., the image and press the button "Submit". You will know your status.


Active Taxpayer(IT)

A.T.L.

An Embarrassing Taxpayer

How to get oneself become Active Taxpayer and Filer?

If you want that your name, NTN/CNIC should appear in the Active Taxpayer List, you should have to submit your last income tax returns. The persons who have not submitted their returns for tax years 2014 have been ousted from the said list. However, in case they file their return their name will appear on the Active Taxpayers List that should be uploaded on the website of the Federal Board of Revenue on next morning. This means suppose you have filed your return on Saturday, September 19, 2015 for tax year 2015 by using the online facility of FBR, your name will appear in the Active Taxpayers List in the list that would be available on the FBR’s website on Monday, September 21, 2015. Those who file manual returns always find themselves in trouble. So you may submit the return online, which is easier and convenient way. If you are finding it hard to submit the return you may contact our legal Firm; Lawbiz Group, 187-Atta Turk Block, New Garden Town, Lahore. Phone 0345-4258240.

This is the position that is available in the statute book. However, there are many cases where the taxpayers have filed income tax returns for tax years 2014 well within time manually, as they were not legally required to submit the return online. However, even then their names are not appearing in the Active Taxpayers List. The Federal Board of Revenue should take necessary action to address the grievance of the bona fide taxpayers in this context.

If you want that your name, NTN/CNIC should appear in the Active Taxpayer List, you should have to submit your last income tax returns. The persons who have not submitted their returns for tax years 2014 have been ousted from the said list. However, in case they file their return their name will appear on the Active Taxpayers List that should be uploaded on the website of the Federal Board of Revenue on next morning. This means suppose you have filed your return on Saturday, September 19, 2015 for tax year 2015 by using the online facility of FBR, your name will appear in the Active Taxpayers List in the list that would be available on the FBR’s website on Monday, September 21, 2015. Those who file manual returns always find themselves in trouble. So you may submit the return online, which is easier and convenient way. If you are finding it hard to submit the return you may contact our legal Firm. Our Phone No. is 0345-4258240.

This is the position that is available in the statute book. However, there are many cases where the taxpayers have filed income tax returns for tax years 2014 well within time manually, as they were not legally required to submit the return online. However, even then their names are not appearing in the Active Taxpayers List. The Federal Board of Revenue should take necessary action to address the grievance of the bona fide taxpayers in this context.

Tax Adviser

Disadvantages of Non-active taxpayers and non-filers

In case your name appears in the active taxpayers list, you will be treated as a ‘filer’ and lesser withholding taxes should be payable by you. Some of the Instances are given below:

  1. You will not be subjected to withholding tax @ 0.3% on all banking transactions, which will be 0.6% after 30.09.2015. This tax is other than the tax mentioned at Sr. No.5 below.
  2. You will have to pay 50% less tax on purchase of vehicles and immovable properties.
  3. You will have to pay 50% less token tax.
  4. In case of dividend the filers shall be charged tax @ 10% and non-filers @ 15%.
  5. In case of cash withdrawals of more than Rs.50,000 the rate in the case of filer will be 0.3% and in case of non-filer 0.4%.
  6. On winning a prize on prize bonds you have to pay more tax if you are non-filer and not an active taxpayer.

It is also advisable that the taxpayers should file their returns well within the statutory time period so as to avoid any penal action as there are heavy penalties for non-filing or late filing of return. It may be noted that in case of late filing the penalty is equal to 0.1% of the tax payable for each day of default subject to a maximum penalty of 50% of the tax payable provided that if the penalty worked out as aforesaid is less than twenty thousand rupees or no tax is payable for that tax year such person shall pay a penalty of twenty thousand rupees. This means that minimum penalty is Rs.20,000.

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2 comments

Imran 14 months ago

It is very important for the taxpayers to file their returns in time to get themselves in the list of active taxpayers so that their tax may be withheld by the banks at the lower rates or even no deduction.


fakhruzzaman 3 months ago

very detailed instruction but simplification of Return filing for general public petty buisnes men is still a problem and resultantly filing and tax collection are lost. Where is updation ATL and tax payer card . will it be collected by the filer or be sent at home address.

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