Active taxpayers: late filers of returns will not be allowed to avail benefits

Late filers of income tax returns would not be allowed to avail benefits of active taxpayers, as late filers would not be added in Active Taxpayers List of Federal Board of Revenue (FBR) even after filing of the returns.
A tax expert explained that a new section 182A (Return not filed within due date) has been added in the Income Tax Ordinance 2001. Finance bill 2018 proposes to insert a new section 182A, whereby, in case of late filing of return, the person would not be added in then active tax payers' list even after filing of the return. Moreover, losses for that year shall also not be allowed to be carried forward. The bill also proposes to delete section 214D, whereby, cases of late filers were automatically selected for audit owing to audit incapacity of FBR. However, a clarification would be required with respect to pending cases under section 214D, tax expert added.
According to section 182A (Return not filed within due date), where a person fails to file a return of income under section 114 by the due date as specified in section 118 or by the date as extended by the Board under section 214A or extended by the Commissioner under section 119, as the case may be, such person shall- (a) not be included in the active taxpayers' list for the year for which return was not filed within the due date; and (b) not be allowed, for that tax year, to carry forward any loss under Part VIII of Chapter IV", it added.