Lahore: The Federal Board of Revenue (FBR) has streamlined the process for taxpayers to achieve active status, eliminating the need to submit previous years’ returns. Under the new directive, only the current year’s tax return is required to qualify taxpayers for inclusion in the Active Taxpayer’s List (ATL), simplifying compliance and encouraging timely filings.

According to Zameen.Com, the recent modifications stem from the issuance of S.R.O.1635(I)/2024, which revises the Income Tax Rules. This regulatory update states that filing a return by the due date is sufficient for taxpayers to be recognized as active filers in the ATL, discarding the previous requirement of submitting last year’s returns. The adjustment aims to streamline the filing process and reduce the bureaucratic load on individuals and businesses.

The revised rules specify that individuals who file their income tax returns by the set due date, whether original or extended by the Commissioner or the Board, will be listed in the ATL for the latest tax year, which is defined as the most recently completed tax year prior to the filing date. If returns are submitted past the due date, inclusion in the ATL will depend on the payment of a surcharge as mandated by section 182A of the Income Tax Ordinance. Additionally, new companies or associations formed after June 30 of the relevant tax year are eligible for ATL inclusion once their returns are due.

The FBR also recognizes filings with the Azad Jammu and Kashmir Central Board of Revenue or the Gilgit Baltistan Council Board of Revenue as valid for ATL inclusion, ensuring that taxpayers across these regions benefit from the updated regulations.