If a late filer of an income tax return intends to become an active tax filer after March 1, 2023, he will pay an ATL penalty or surcharge after submitting a tax return for the year 2022.
For example, in order to register as an active tax filer with FBR, one must submit a tax return for the tax year 2022, as well as a penalty or surcharge for ATL for the tax year 2022.
Taxpayers who submitted their tax returns for tax year 2022 after the deadline and whose status in FBR is currently “inactive” may be subject to an ATL surcharge at the rates specified below:
ATL Surcharge: Individual Person and Salaried Class:
The rate of surcharge for ATL in FBR for becoming an active tax filer for an individual or salaried taxpayer is Rs 1,000. The taxpayer must first file a tax return for the tax year 2022. Then, prepare a challan to pay the ATL surcharge. Following payment of such a surcharge, FBR will add the taxpayer’s name to the list of active taxpayers.
Surcharge for ATL-AOP and Partnership Business:
The rate of surcharge for ATL in FBR for being an active tax filer for an AOP or partnership business is Rs 10,000. Firstly, the taxpayer must file a tax return for the tax year 2022. Then, to prepare a challan to pay the ATL surcharge, FBR will add the AOP or partnership’s name to the list of active taxpayers.
ATL Surcharge: Private/Public Limited Company:
The rate of surcharge for ATL in FBR for becoming an active tax filer for a private or public limited company is Rs 20,000. The taxpayer must first file a tax return for the tax year 2022. Then prepare a challan to pay the ATL surcharge.
Benefits of being an Active Taxpayer
- When compared to inactive taxpayers, those on the Active Taxpayer List (ALT) must pay nearly half of the withholding tax.
- People appearing on ATL must pay a 5% tax on raw material imports, compared to 11% for inactive taxpayers.
- Those showing on ATL must pay 6% tax on commercial imports, compared to 12% for inactive taxpayers.
- Persons listed on ATL must pay 15% dividend tax, as opposed to 30% for inactive taxpayers.
- People appearing on ATL must pay a 10% tax on profits from banks and savings schemes up to Rs 50,000 and a 15% tax on profits above Rs 5,00,000, whereas inactive taxpayers must pay twice.
- Except for corporations, 10% tax will be withheld on services provided by people on the active taxpayer list, whereas 20% will be withheld from inactive taxpayers.
- Persons in ATL must pay 15% tax on money from prize bonds, compared to 30% for inactive taxpayers.