Introduction
If you filed your income tax return after the due date, your name stays off the Active Taxpayers List (ATL) — and until now the only way back on was to pay a surcharge. FBR's SRO 2097(I)/2026 (dated 10 November 2026) opens a second door: an individual can join the ATL without paying the surcharge by signing a simple undertaking — Form ATL-U — promising not to buy any property for six months.
Bottom line: Late-filing individuals can get on the ATL surcharge-free by furnishing Form ATL-U on IRIS and undertaking not to acquire any property for 6 months. Buy property in that window and the surcharge comes back — from the date of breach. This waiver is for individuals only, not AOPs or companies.
Why a surcharge exists at all
Under Section 182A of the Income Tax Ordinance 2001, if you file your return after the due date (or extended date), you are kept off the ATL for that year. The only way back on — until this SRO — was to pay a late-filer surcharge:
| Taxpayer type | ATL surcharge (Finance Act 2026) |
|---|---|
| Individual | Rs 25,000 |
| Association of Persons (AOP) | Rs 50,000 |
| Company | Rs 100,000 |
These amounts were raised by the Finance Act 2026 (previously the Rs 1,000 / 10,000 / 20,000 band).
What's new — the undertaking route
The Finance Act 2026 inserted sub-section (3) in Section 182A, which says the surcharge condition shall not apply to an individual who undertakes that he will not purchase, acquire or otherwise obtain ownership or beneficial interest in any property for six months. SRO 2097(I)/2026 is the piece that makes this work in practice — it prescribes the form and procedure by amending the Income Tax Rules 2002.
What the SRO changed: It added new sub-rules (2B), (2C), (2D) to Rule 81B, and added a new Part XV to the First Schedule — the Form ATL-U undertaking.
The rules, decoded
| Sub-rule | What it means |
|---|---|
| 81B(2B) | A late-filing individual who furnishes Form ATL-U through IRIS is included in the ATL without paying the surcharge. |
| 81B(2C) | The 6-month clock starts from the date on the IRIS electronic acknowledgement of the ATL-U — not the return filing date. |
| 81B(2D) | FBR may verify from any registry, bank or authority. If you acquired property in the 6 months, you get a hearing; if breach is proven, the waiver is withdrawn from the date of breach and the surcharge applies. |
Step-by-step: how to use Form ATL-U
- File your income tax return for the latest tax year through IRIS (even though it is after the due date).
- Open Form ATL-U in IRIS (Part XV of the First Schedule) and fill in: name, CNIC/NTN, tax year, date of filing, IRIS acknowledgement/reference number, and date of furnishing the undertaking.
- Sign the undertaking — you declare you will not purchase, acquire or obtain ownership/beneficial interest in any property for six months.
- Submit through IRIS (electronic verification under Rule 73). Note the acknowledgement date — your 6-month period runs from here.
- Your name appears on the ATL without the Rs 25,000 surcharge.
Should you take the waiver? Pros & cons
| Pros — why to take it | Cons — what to watch |
|---|---|
| Save the Rs 25,000 surcharge outright — real cash saved. | No property for 6 months — any plot, flat, house or even a share/beneficial interest in property is blocked. |
| Immediately get filer benefits — lower WHT on banking, vehicle registration/token, property transfers, dividends and cash withdrawals. | A single breach revives the full surcharge — calculated from the date of breach, not refunded back. |
| 100% online through IRIS — no challan, no manual payment, instant ATL inclusion. | FBR cross-checks registries & banks during the 6 months — you can be caught and issued a notice. |
| Good for anyone who only missed the deadline and has no near-term property plans. | The restriction runs a full 6 months from the IRIS acknowledgement — it does not end when the next ATL is issued. |
| Keeps you compliant and on the ATL without borrowing or arranging funds for the surcharge. | Available to individuals only — AOPs and companies cannot use it and must pay the surcharge. |
Rule of thumb: No property plans in the next 6 months → take the waiver. Any chance of a property deal → pay the surcharge and stay free to buy.
⚠️ Decide before you sign: If you plan to buy a plot, flat or any property in the next six months, pay the surcharge instead. The undertaking covers beneficial interest too — so even acquiring a share through a family arrangement can count as a breach.
Who should use this?
This is ideal for a salaried individual or small business owner who simply missed the deadline, wants ATL benefits, and has no property plans in the near term. If you are mid-way through a property deal, paying the surcharge is the cleaner route.
Not sure of your current status? Check it first with our ATL Status Check tool.
Sources & References
- SRO 2097(I)/2026 dated 10 November 2026 — Federal Board of Revenue (amendment to Income Tax Rules 2002; Form ATL-U, Part XV) — download PDF
- Section 182A(1) & 182A(3), Income Tax Ordinance 2001 (sub-section (3) inserted by Finance Act 2026)
- ATL surcharge amounts (Finance Act 2026): individual Rs 25,000, AOP Rs 50,000, company Rs 100,000
- Rule 81B & Rule 73, Income Tax Rules 2002
- Federal Board of Revenue — fbr.gov.pk
Disclaimer: This article is for general educational purposes and reflects FBR notifications current as of November 2026. Tax rules change — verify against the latest SRO and your IRIS profile, or consult a qualified tax advisor before acting.
Not sure whether to take the waiver or pay the surcharge? Get help from Umair Mubeen — Pakistan tax educator, Karachi. WhatsApp: +92 333 248 2742
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