Return not filed within due date Section 182A

Return not filed within due date Section 182A: Section 182A was introduced through the Finance Act, 2018. As per this section, where a person fails to file a return of income under section 114 within the due date as specified in section 118 or by the date as extended by the Board or as extended by the Commissioner, such person shall not be included in the active taxpayers list for the year for which return was not filed within due date and such person shall not be allowed to carry forward any loss under Part VIII of Chapter IV.

As a result, persons who file return after the due date would be subjected to higher tax rate for not appearing in the ATL for the whole year whereas such persons had filed their return.

Through the Finance Act, 2019, a proviso has been added in clause (a) of sub-section (1) of section 182A which allows inclusion in the ATL after the due date on payment of surcharge which is Rs.20,000 in case of a company, Rs.10,000 in case of an AOP and Rs.1,000 in case of an individual.

Further, clauses (c) and (d) have been added in sub-section (1) stating that no refund shall be payable to a person during the period the person is not included in the ATL and shall also not be entitled to compensation for delayed refund for the period the person is not appearing in the ATL and such period shall not be counted for the purpose of computing additional payment for delayed refund.

For example, a person has outstanding refund for the tax year 2018 but return for the tax year 2019 has not been filed even after expiry of due date.

In such a situation neither refund for tax year 2018 shall be issued nor the period shall be counter for compensation for delayed refund for the period the person is not appearing in the ATL.

These explanations have been issued by FBR after the Finance Act 2019 approved / passed from the parliament of Pakistan.