ISLAMABAD: The Federal Board of Revenue (FBR) Monday announced that the FBR will issue the updated Active Taxpayer List (ATL) after March 1, and only those taxpayers will be included in the list who filed their income tax returns for Tax Year 2020.
According to a statement issued by the FBR on Monday, the total number of filers has further increased to 2.316 million along with the tax collection rising up to Rs 43.6 billion till Jan 4, as compared to 2.181 million filers along with the tax collection of Rs 28 billion during the corresponding period of the previous year, showing an increase of 55 percent in tax collection in current year.
The FBR stated that the filing of income tax returns has improved significantly during the tax year 2020. A total of 1.768 million taxpayers filed their income tax returns before the deadline of Dec 8, 2020 while the tax received by FBR stood at Rs 22 billion by this date.
It is also mentionable here that the number of income tax Returns filed after the deadline of Dec 8, 2020 remained 0.547 million along with the tax collection Rs 22 billion approximately. FBR has launched a number of initiatives for the facilitation of taxpayers that have resulted in the increased number in filing of income tax returns.
Enlistment in ATL comes with a variety of benefits for taxpayers that include exemption from Withholding Tax in a number of financial transactions and withholding of tax at half of the rate on many other financial transactions carried out by non-filers i.e those are not on Active Taxpayers List. Possible legal action on account of concealment of income based of tax withheld on any financial transaction. It may be noted that the amount of fine on late filing increases in proportion with the delayed period of time.
Copyright Business Recorder, 2021