How to avoid surcharge under section 182A
Ever since the Finance Act 2026 is passed and FBR has increased the ATL Surcharge under section 182A of the Income Tax Ordinance, 2001. This blog will help taxpayers and they will know How to avoid Surcharge under section 182A of the Income Tax Ordinance, 2001.
The new amended section 182A of the Income Tax Ordinance, 2001 reads as under:
182A. Return not filed within due date. (1) Notwithstanding anything contained in this Ordinance, 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
- not be included in the active taxpayers’ list for the year for which return was not filed within the due date
- Provided that without prejudice to any other liability under this Ordinance, the person shall be included in the active taxpayers’ list on filing return after the due date, if the person pays surcharge at Rupees-
- one hundred thousand in case of a company;
- fifty thousand in case of an association of persons;
- twenty-five thousand in case of an individual.
“Explanation. For the removal of doubt it is clarified that the provisions of this section shall apply from tax year 2018 and onwards for which the first Active Taxpayers List is to be issued on first day of March, 2019 under Income Tax Rules, 2002.; and
(b) not be allowed, for that tax year, to carry forward any loss under Part VIII of Chapter IV
(c) not be issued refund during the period the person is not included in the active taxpayers’ list; and
(d) not be entitled to additional payment for delayed refund under section 171 and the period the person is not included in the active taxpayers’ list, shall not be counted for computation of additional payment for delayed refund.
(3) The conditions of payment of surcharge mentioned in sub-section (1), shall not apply to an individual who furnishes an undertaking before the Commissioner by declaring that he shall not purchase, acquire, or otherwise obtain ownership or beneficial interest in any property for a period of six months commencing from the date of furnishing such undertaking in such form as may be prescribed.
Here is Step-by-Step submission via IRIS
This is for information of all respected members that taxpayers filing as Individuals, including Sole Proprietorships – as a business registered under CNIC is legally treated as an “Individual” under the Income Tax Ordinance, 2001 – can now submit the undertaking through FBR IRIS 2.0 Portal to avoid the late-filing surcharge.
If you are filing as an Individual or a Sole Proprietorship Business (since a business registered under a CNIC falls legally under “Individual”), you can submit the undertaking via FBR IRIS 2.0 Portal:
1. Log in to your personal account on the IRIS 2.0 Portal.
2. Navigate to the Declaration tab or search for Form ATL-U in the taskbar.
3. Open the form and select the relevant Tax Year.
4. Fill in the required reference details (such as your late-filed return’s IRIS acknowledgement number).
5. Read and digitally sign the Undertaking Statement, which legally binds you to the following condition:”I shall not purchase, acquire or otherwise obtain ownership or beneficial interest in any property for a period of six months…”
6. Submit the form to generate your electronic acknowledgment. Your status on the ATL will change to active automatically without requiring the Rs. 25,000 penalty.
