Active Taxpayer? Don’t Get Stuck Inactive: Understanding ATL Status

As an active taxpayer in Pakistan, maintaining a healthy Active Taxpayer List (ATL) status is crucial. But what triggers an ATL status to become inactive in March? This article explores the three main reasons and provides resources to stay compliant.

Why Did Your ATL Status Become Inactive?

The Federal Board of Revenue (FBR) reviews taxpayer information in March and may deactivate your ATL status for the following reasons:

  1. Late Tax Return: Failing to file your income tax return by the due date (October 31st for the previous tax year) can lead to deactivation.
  2. Non-Filing of Tax Return: Completely neglecting to file your income tax return, regardless of the due date, will likely result in deactivation.
  3. Unpaid Late Filing Challan: If you filed your return late but didn’t pay the associated late filing penalty (challan), known as ATL Surcharge by the deadline, your ATL status might be deactivated.

Example: If you haven’t filed your tax return for the tax year 2023 (income earned between July 1st, 2022 and June 30th, 2023), and the due date has passed (October 31st, 2023), your ATL status might be deactivated in March 2024.

How to activate ATL status?

Here’s how to ensure your ATL status remains active:

  • File Your Tax Return on Time: Make filing your income tax return a priority by the designated due date.
  • Pay Any Late Filing Penalty: If you miss the filing deadline, file the return as soon as possible and pay the associated late filing challan to avoid deactivation.
  • Monitor Your ATL Status: Regularly check your ATL status on the FBR’s website using your National Tax Number (NTN). This allows you to identify any potential issues and take corrective action promptly.

Consequences of an Inactive ATL Status:

An inactive ATL status can lead to various inconveniences:

  • Limited Business Transactions: Certain businesses may be reluctant to transact with you if your ATL status is inactive.
  • Difficulty Obtaining Loans: Financial institutions might hesitate to approve loans for individuals with inactive ATL status.
  • Delays in Government Services: Processing of government services, such as passport renewals, may be delayed due to an inactive ATL status.

Frequently Asked Questions:

Conclusion:

By understanding the reasons for ATL deactivation and taking proactive steps to stay compliant, you can ensure a smooth and hassle-free experience as an active taxpayer in Pakistan. Remember, timely filing, challan payments, and regular monitoring of your ATL status are key to maintaining an active and healthy tax profile.

8 Comments

  1. Sir, I am already filled tax return 2023 wef 31 Jan 2023, consider ATL now shown inactive. Please what reason?

  2. Assalam o alaikum.
    Same thing happened with me. I’m showing in inactive list whereas I have filled on due date.
    Please guide.

    1. Please login to your fbr account to verify if when your return was submitted check the document date and due date.

  3. Alyas Rehmatsays:

    I am an active taxpayer and also submitted my return last year.
    Today, when I checked ATL, I was surprised not to see my name there. I further checked as I am appearing as an active taxpayer up to Feb 2024 and then inactive; what could be the reason?

  4. Alyas Rehmatsays:

    am an active taxpayer and also submitted my return last year.
    Today, when I checked ATL, I was surprised not to see my name there. I further checked as I am appearing as an active taxpayer up to Feb 2024 and then inactive; what could be the reason?

    1. Assalamualikum
      Active Taxpayer list updates on 1st March every year.
      The reason could be late filing of return (after due date)
      You can pay the fine of 1,000 to get active (if above is the case)
      You can also WhatsApp for specific guidance.

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