Extension applications: FBR clarifies timely filers remain on ATL

ISLAMABAD: The Federal Board of Revenue (FBR) has categorically clarified that no taxpayer who has filed an extension application within the prescribed time limit has been removed from the Active Taxpayers List.

According to a clarification issued by the FBR on Monday, it has been observed that a misleading report is being circulated on certain media platforms regarding the declaration of a large number of taxpayers as ‘inactive’. FBR hereby clarifies that no taxpayer who has filed an extension application within the prescribed time limit has been removed from the Active Taxpayers List. The Active Taxpayers List for the year 2025 will be based on the returns filed for Tax Year 2024, along with all the new filers for Tax Year 2025 up to 15th November 2025.

Taxpayers who have duly filed an extension application through the system have been granted a 15-day extension automatically in accordance with the directions of the Chairman FBR. The manual filing of returns has been discontinued through recent amendments in the Income Tax Rules. However, individuals who filed manual returns last year are being granted a one month facilitation period to enable them to e-file their returns. Regional Tax Offices (RTOs) have been instructed to provide full assistance to such taxpayers to ensure a smooth transition to electronic filing.

The taxpayers who have missed the deadline can still submit an extension application through the online system up to 15th November, 2025, stating valid reasons for the delay to the concerned Commissioner.

FBR remains committed to facilitating taxpayers and ensuring that all genuine filers retain their active status while promoting transparency and compliance through digital systems.

Waheed Shahad Butt tax lawyer told Business Recorder that the FBR has made a false statement. The FBR has made him “inactive” on November 1 despite filing an application for extension on October 31. He did not timely file return till October 31. The same tax policy has been adopted for all taxpayers, who failed to file returns on October 31 but applied for extension on October 31.

Copyright Business Recorder, 2025