Real Estate Expert Asks FBR to Extend Return Filing Date By A Week

A real estate expert has asked the Federal Board of Revenue (FBR) to provide another seven days to understand S.R.O. 1448(I)/2024 pertaining to the changes to the Active Taxpayers List Rules. In a communication to FBR, real estate analyst Muhammad Ahsan Malik said that the notification in the draft form pertains to changes made in the ATL rules which are going to affect the common man and taxpayers but there is no explanatory note or statement of its effect and intent given in the notification. Therefore this notification cannot be understood by the general public because it is just a list of deletions and additions in the existing rules but the impact of those additions and amendments has not been provided by FBR. It is therefore recommended that another seven days’ notice be provided for comments by the general public and FBR must publish a comparative statement of the intended changes and state how the proposed changes are going to affect the taxpayers and general public. This is very important because without it, this draft SRO is just a formality and the FBR is trying to hide behind technicalities and will amend the rules just to make legal compliance of publishing it for comments whereas the real effect will remain hidden from the eyes of the general public, he added. Under S.R.O. 1448(I)/2024, the FBR will also include the name of a person in the Active Taxpayers List (ATL), who will file returns for the latest tax year, by the due date or extended due date by the Commissioner or due date extended by the Board. As per FBR, a person’s name shall be included in the ATL, if he files a return of income tax for the latest tax year, by the due date specified in section 118 or by the due date as extended under section 119 by the Commissioner or by the due date as extended by the Board under section 214A. The FBR explained that the “latest tax year” means the tax year last completed before the date on which the return is filed and shall include the tax year previous to that year in case the due date or extended due date for filing of return for the last completed year has not expired. In case a person files his income tax return for the latest tax year, after the due date or extended due date as mentioned in sub-rule (1), his name shall be included in the active taxpayer’s list, if he pays a surcharge as specified in proviso to clause (a) of sub-section (1) of section 182A of the Ordinance. The name of a company or an association of persons, whose return is not due to be filed because of incorporation or formation of such company or association of persons after the 30th day of June relevant to the latest tax year, shall be included in the active taxpayers’ list, FBR added.