Penalties & Surcharge for Late Filers of Income Tax Returns
• After Due date of December 16, 2019, for Submission of Tax Return for Tax Year 2019, FBR is going to start campaign against taxpayers, including doctors, hospitals, real estate, plazas and school owners.
• People Who are living in a canal house, owns a 1000cc cars, pays a commercial bill of Rs 0.5 million must have to submit their tax Returns for the Tax Year 2019, and in case of salaried individuals if they are receiving a salary of more than 0.4 million annually.
• After the deadline is over, Individuals, partnership Businesses and companies will have to pay Penalties and Surcharge to be included in the Active taxpayers list.
Responsibility & Penalty for Non submitting tax Returns
The deadline for filing income tax declarations is coming up on Monday (December 16, 2019), after the deadline ends the Federal Board of Revenue (FBR) will start Imposing Penalties & Surcharge for Late Filers of Income Tax Returns and further imposing a fine or Penalty of Rs 40,000 on peoples if they failed to submit their tax returns for the Tax Year 2019.
Strict action is going to be started against taxpayers after due date of tax return especially doctors, hospitals, real estate, plazas and school owners. People who owns a canal house, which has 1000cc or more capacity cars, pay a commercial bill of Rs 0.5 million or more and receive annual salary of more than 0.4 million, they will have to submit their tax Returns for the tax year 2019. ۔
Inclusion in ATL
A person’s name will be part of the current ATL, if the tax return submitted is related to the relevant ATL (Active Tax Payer List) tax year. For example, to be part of the ATL, published March 1, 2018, a person must file a tax declaration for the tax year 2017. Likewise, in order to be part of the ATL, published March 1, 2019, someone must submit the Tax returns for the tax year 2018. Otherwise, FBR Will start Penalties & Surcharge for Late Filers of Income Tax Returns.
The ban on the inclusion of a person’s name in the ATL, if that person has not filed a tax returns, by the Income Tax Authorities (FBR), till the due date, was introduced by the Finance Act, 2018. For example, to be part of the ATL, published on March 1, 2019, the person must file a tax return by the due date for the tax year 2018.
However, through the Finance Act, 2019, a person’s name may be part of the ATL, even if the person has filed a tax declaration after the date set by the Income Tax Authorities.
In addition, after the due date of filing of tax returns, the late filers of tax returns will charged surcharge under the Income Tax Ordinance, 2001 for placement in Active Taxpayer List (ATL):
Individual Rs 1,000
Partnership Rs 10,000
Companies Rs 20,000
ATL in Specific Cases
– In case of a company or AOP (Association of Persons) Business types whose returns cannot be filed or due after they become registered they are automatically included in Active Tax Payers List (ATL) or formed after June 30 of the tax year related to ATL.
– Bank Account Holders with a joint Bank account will be included in Active Tax Payers List (ATL) soon after, if any one of the joint bank account holder become Active Tax Filer by Inclusion of name in Active Tax Payer List.
– In Case of a minor child he will be considered Active tax filer. If parent or guardian of the minor child or any person who deposits the money in the minor child bank account is deemed to be in the active tax payer list (ATL) after Meets inclusion criteria.
For the tax year 2018, late filers can pay the “Surcharge for ATL” as defined under Section 182 (A) of Income Tax Ordinance 2001 by clicking on the “Misc” head of the tax payment type in the PSID.
Only after the surcharge is paid after the submission of tax return for the tax year 2018, the filer’s name will become part of the ATL (Active Taxpayers List).
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