Active (Late Filer), a new category, intorduced by the Federal Board of Revenue (FBR) for taxpayers who fail to file their income tax returns by due date or the extended deadline. This categorization was added in the Income Tax Ordinance 2001 via Finance Act 2024.
The FBR aimed to encourage timely tax filing. Late Filers are subject to higher Property Tax Rates.
How doesLate Fileraffect Tax Rates?
Active (Late Filer) and Active Filer are same except for property sale and purchase.
- Late filers are subject to higher tax rates when selling property.
- Late filers to face higher withholding tax rates when purchasing property.
Who will be Late Filer?
Active (Late Filer) is applicable from July 1, 2024. Taxpayers who file tax-returns after October 31, 2024will be Active (Late Filer) if they pay ATL Surcharge for 2024.
How to become Active Filer?
Getting Active from Active (Late Filer) isn’t that much easy anymore. For Active Filer you will need to file tax-returns on time for three years.
- Late Filer due to 2023 are now Active if 2024 tax-returns are filed before October 31, 2024.
- Late Filer who failed to file 2024 tax returns before October 31, 2024will become Active after September 30, 2027.
- To change Late Filer to Active, file upcoming three returns before September 30 each year.
While the FBR temporarily removed the “Active (Late Filer)” status for those who missed the2023 tax return deadline, it’s important to note that this relaxation does not extend to late filers for the2024 tax year. Individuals who filed their 2024 returns after the extended deadline will still be categorized as late filers and may face higher tax rates on property transactions.
