The Federal Board of Revenue (FBR) has moved to ease the burden on taxpayers who missed the annual filing deadline, confirming that eligible individuals can now regain active filer status without paying the standard Rs 25,000 penalty. The relief applies to those who fell into non-filer status after failing to submit their income tax returns by the October 31 deadline.
Under ordinary rules, anyone seeking to restore their filer standing and secure a place on the Active Taxpayer List (ATL) must pay a surcharge of Rs 25,000. The FBR, however, has put in place a legal route that allows qualifying late filers to have this penalty waived in full.
The waiver is grounded in the Finance Act, effective from July 1, specifically Section 182A, subsection (3). This provision permits a taxpayer to escape the mandatory surcharge by furnishing a formal undertaking or affidavit addressed directly to the Commissioner. The mechanism is aimed at ordinary citizens, late filers, and newly registered National Tax Number (NTN) holders, for whom the Rs 25,000 charge is a heavy financial burden, especially where delays stemmed from late NTN registration or other unavoidable circumstances.
The exemption carries one binding condition. In return for the waiver, the taxpayer must declare that they will not buy any immovable property for the following six months. Immovable property in this context covers residential houses, commercial buildings, and vacant plots of land.
To make the declaration legally valid, the undertaking must be drafted and printed on Rs 300 stamp paper. In it, the individual formally promises the Commissioner to refrain from purchasing or acquiring any plot, home, or other immovable real estate for a full six months. Once the declaration is submitted and approved, the person's name is entered on the Active Taxpayer List, granting every statutory benefit and protection tied to recognized active filer status.
Breaking the promise carries immediate consequences. If the taxpayer buys a house, plot, or any immovable property within the six-month window, the transaction violates the sworn affidavit. The undertaking loses its legal validity and becomes void from the exact date the purchase is executed. The temporary exemption is then withdrawn, and the full Rs 25,000 surcharge becomes payable at once.
The entire process is handled digitally through the Iris tax portal, so there is no need to follow complex offline procedures. A dedicated feature named "ATL-U" (Active Taxpayer List – Undertaking) is available directly from the taxpayer's dashboard. The applicant prepares the declaration on Rs 300 stamp paper, scans the executed document, and uploads the electronic copy through the ATL-U interface.
After upload, the document is routed electronically to the relevant Commissioner for review and verification. Once the Commissioner formally approves the undertaking, the system automatically updates the applicant's record and enters their name in the ATL, with no requirement to pay the Rs 25,000 penalty.
The facility is especially useful for new taxpayers who obtained their NTN late in the cycle and for individuals who faced procedural delays beyond their control. Instead of paying the surcharge, they can submit a stamped undertaking pledging not to acquire immovable property for six months and smoothly restore their active filer standing.
For anyone currently classed as a non-filer because the October 31 deadline was missed, the ATL-U option on the Iris system offers a direct, legally approved path back to active filer recognition.
Contact information
Name: Choudry Mujahid Yasin ( CMY )
Phone: +923224929992 Whatsapp Available