Late filers may join ATL without Rs 25,000 surcharge if they buy no property for 6 months

Individuals who file their Tax Year 2026 return late could get onto the Active Taxpayers List (ATL) without paying the Rs 25,000 surcharge, under draft rules the Federal Board of Revenue (FBR) published on 6 October 2026. The condition: you promise not to buy any property for six months.

The return deadline is 15 October 2026 (FBR Circular No. 3 of 2026-27). Filing by then still keeps you on the list at no extra cost. The draft only matters if you miss that date.

What the draft rule says

The draft, S.R.O. 1691(I)/2026, adds three sub-rules to rule 81B of the Income Tax Rules, 2002:

• (2B): an individual who files the latest return after the due date and submits an undertaking in a new Form ATL-U through IRIS is added to the ATL without the surcharge.
• (2C): the six months start on the date printed on the IRIS acknowledgement for Form ATL-U.
• (2D): the FBR can check compliance with information from "any authority, agency, registry, financial institution or other lawful source". If you buy or acquire property in those six months, you get an electronic hearing; if the breach is proved, the waiver is withdrawn from the date of the breach and the normal surcharge rule applies again.

In Form ATL-U you give your name, CNIC or NTN, tax year, the date you filed and the IRIS acknowledgement number, and declare that you will not "purchase, acquire or otherwise obtain ownership or beneficial interest in any property" for six months.

The undertaking itself is already in the law: section 182A(3) of the Income Tax Ordinance, added by the Finance Act 2026. The draft sets out how it works. Objections can be sent to the FBR within seven days of gazette publication, so the final rule may change.

What it means for you, in rupees

Under section 182A, a late filer is added to the ATL only after paying a surcharge:

The waiver is for individuals only. For a salaried person in Lahore or Karachi who misses 15 October, it saves Rs 25,000, as long as no plot, house or flat is bought or transferred in their name for six months. If you plan to buy property soon, file on time: buying property as a non-filer costs more in withholding tax than the surcharge, as our filer vs non-filer withholding rates guide shows. Estimate the capital gains tax on a sale before you decide.

Second draft: automated scrutiny notices

A second draft published the same day, S.R.O. 1690(I)/2026, inserts a new rule 38B on electronic scrutiny. An automated system will cross-match returns with other data and send an "advance intimation" through IRIS listing mistakes or discrepancies before any legal or penal action. You get at least seven days to explain or correct, and a reminder with at least another seven days if you do not reply. The Inland Revenue officer then decides whether any action is needed. Comments on this draft are due within three days of gazette publication.

What to do now

1. File by 15 October: work out what you owe with the income tax calculator and follow our IRIS filing guide.
2. Check your status afterwards with the ATL and NTN check.
3. Watch your IRIS inbox: under the new rule, a notice with a seven-day reply window may land there.

Deadline updates are on our income tax return last date page.