The Federal Board of Revenue (FBR) has issued clarification regarding eligibility criteria for inclusion in the Active Taxpayers List (ATL) for Tax Year 2026.

​To maintain active status and retain key tax benefits, taxpayers must comply with the filing timelines and statutory provisions set under the Income Tax Ordinance, 2001.

​FBR ATL Eligibility Deadline for Tax Year 2026

​Taxpayers who submit their income tax returns on or before the extended deadline of October 31, 2026, qualify for automatic inclusion in the Active Taxpayers List for Tax Year 2026.

​Failure to meet this deadline results in removal from the ATL, subjecting individuals and entities to higher withholding tax rates and compliance penalties.

​Late Filing Surcharge under Section 182A

​Under Section 182A of the Income Tax Ordinance, 2001, taxpayers who miss the deadline can restore their active status on the ATL only after filing their late tax return and paying the mandatory surcharge:

Taxpayer CategoryLate Filing Surcharge Amount

CompaniesPKR 100,000

Association of Persons (AOPs)PKR 50,000

IndividualsPKR 25,000

Key Consequences of Inactive Taxpayer Status

​Filing late or remaining off the Active Taxpayers List leads to significant financial and legal restrictions:

​Loss Carry-Forward Restrictions: Inability to carry forward business or financial losses to subsequent tax years.

​Withheld Tax Refunds: Tax refunds remain frozen while the taxpayer is excluded from the ATL.

​No Additional Payment on Delayed Refunds: Section 171 compensation for delayed refunds will not accrue for the period spent outside the ATL.

​Exemption from Surcharge for Individuals

​Under specific statutory provisions, individual taxpayers can qualify for an exemption from the late filing surcharge by submitting a prescribed undertaking to the Commissioner.

​Exemption Condition: The individual must declare that they will not purchase, acquire, or hold beneficial interest in any immovable or movable property for six months from the date of the undertaking.

​Summary Recommendations for Taxpayers

​File on Time: Ensure your income tax return for Tax Year 2026 is submitted prior to October 31 to maintain continuous ATL status.

​Avoid Penalties: Timely filing protects you from steep surcharge penalties under Section 182A and elevated withholding tax rates.