Number of active taxpayers increases to 2,545,622

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Islamabad

Around 367,159 taxpayers have paid surcharge for appearance in the Active Taxpayers List (ATL) for availing exempt or reduced rates of withholding tax on various transactions.

According to the weekly updated ATL for tax year 2020, the number of active taxpayers increased to 2,545,622 on the basis of income tax return filed within due date and after payment of surcharge after due date by April 11, 2021.

The Federal Board of Revenue (FBR) issued the new ATL for tax year 2020 on March 01, 2021 which carried 2,178,463 names of taxpayers, who were entitled to avail reduced or exempt rates of withholding tax on various transactions.

The filing of income tax returns is mandatory for all the taxpayers who have taxable income or specified under Section 114 of Income Tax Ordinance, 2001.

As per statute the compliance of mandatory return filing was not enough to avail the reduced rate facility.

ccording to Section 182A of Income Tax Ordinance, 2001 the persons who fail to file annual return of income by due date or extended by commissioner Inland Revenue then their names would not be included in the active taxpayers list for the year for which return was not filed.—TLTP