Late Filer to Active Filer — How to Upgrade Your ATL Status Under S.R.O. 1638(I)/2024

Introduction

One of the most frequently asked questions by taxpayers in Pakistan is: "I filed my return late — when will my status change from Late Filer to Active Filer?" The good news is that a significant regulatory update in October 2024 has made this process much faster and more straightforward than before.

Under S.R.O. 1638(I)/2024 dated 18 October 2024, the Federal Board of Revenue has overhauled how the Active Taxpayers List (ATL) is updated and how a taxpayer's status transitions from Late Filer to Active Filer. The two key changes are: the ATL is now updated daily instead of weekly, and there is a clear pathway for late filers to regain full Active Filer status.

This article explains exactly what changed, what it means for late filers, and what steps you need to take to upgrade your status from Late Filer to Active Filer as quickly as possible.

Legal Basis — S.R.O. 1638(I)/2024

S.R.O. 1638(I)/2024 was issued by the Federal Board of Revenue on 18 October 2024. This Statutory Regulatory Order amended the rules governing the Active Taxpayers List (ATL) under the Income Tax Ordinance, 2001 in two significant ways:

1. The frequency of ATL updates was changed from weekly to daily
2. The mechanism for late filers to appear on the ATL and eventually upgrade to Active Filer status was formally clarified

Before this SRO, the ATL was updated every Monday — meaning a taxpayer who filed their return and paid the surcharge on a Tuesday would have to wait until the following Monday to appear on the ATL. With daily updates, the wait is reduced to the next working day.

What Is the Difference Between Late Filer and Active Filer?

As the table shows, Late Filer status — while better than Non-Filer — still carries significantly higher withholding tax rates on property transactions compared to Active Filer. Understanding how to move from Late Filer to Active Filer is therefore a financially important objective.

Change 1 — ATL Now Updated Daily

Before S.R.O. 1638(I)/2024, the Active Taxpayers List was updated every Monday. This meant that if a taxpayer filed a late return on Wednesday and paid the surcharge, they would remain off the ATL until the following Monday — a wait of up to 5 working days.

Under the new SRO, the ATL is now updated every day. This has a direct practical benefit:

• A late filer who files their return and pays the surcharge on any day will appear on the ATL as a Late Filer by the next day
• This eliminates the weekly wait and allows taxpayers to access Late Filer status — which is still better than Non-Filer status — much more quickly
• For taxpayers with urgent property transactions or financial dealings, this daily update is highly significant

Change 2 — How to Upgrade from Late Filer to Active Filer

Under S.R.O. 1638(I)/2024, there is a clear and automatic pathway to upgrade from Late Filer to Active Filer:

This is the most important practical takeaway from S.R.O. 1638(I)/2024. You do not need to do anything special to upgrade from Late Filer to Active Filer — simply file the next year's return on time and the system automatically upgrades your status.

Step-by-Step — Late Filer to Active Filer Journey

Practical Scenarios

Scenario 1 — Urgent Property Transaction (Need ATL Fast)

Mr. Hassan missed his Tax Year 2024 return deadline (September 30, 2024). He has an urgent property purchase coming up in November 2024. As a Non-Filer, he would pay 10.5% advance tax on the purchase instead of the 1.5% Active Filer rate.

What he should do:

1. File the Tax Year 2024 return immediately on IRIS — even though it is late
2. Pay the Rs. 1,000 surcharge for late filing
3. He will appear on the ATL as a Late Filer the next day (4.5% rate on property purchase)
4. To become an Active Filer (1.5% rate), he must file Tax Year 2025 return on time by September 30, 2025

Scenario 2 — Automatic Upgrade Path

Ms. Sana was a Late Filer in Tax Year 2024 (she filed after September 30, 2024 and paid the surcharge). She files her Tax Year 2025 return by September 28, 2025 — before the deadline.

Result: Her status automatically upgrades to Active Filer from the date Tax Year 2025 ATL is published — no additional action required.

What Is the Surcharge for Late Filing?

To appear on the ATL as a Late Filer after missing the September 30 deadline, a taxpayer must:

1. File the late income tax return on FBR IRIS
2. Pay a surcharge of Rs. 1,000 — this is separate from any penalty for late filing under Section 182

The surcharge is a mandatory payment specifically for ATL inclusion as a Late Filer. Without paying the surcharge, filing the return alone does not result in ATL inclusion as a Late Filer.

How to Check Your Current ATL Status

You can verify your current ATL status — whether Active, Late Filer, or not on ATL — using either of these methods:

• SMS: Send your CNIC (without dashes) as an SMS to 9966 — instant reply with your status
• Online: Visit www.fbr.gov.pk → ATL search → enter CNIC or NTN
• IRIS: Log in to iris.fbr.gov.pk and check your taxpayer profile

Frequently Asked Questions (FAQs)

Q1: I filed late and paid the surcharge — why am I still not showing on the ATL?
Under the new daily update system, you should appear on the ATL the next working day after filing and paying the surcharge. If more than 2 working days have passed and you are still not showing, log in to IRIS to verify that your return was successfully submitted and the surcharge payment was processed. If both are confirmed, contact FBR helpline at 051-111-772-772.

Q2: Is Late Filer status the same as being on the Active Taxpayer List?
Yes — Late Filers do appear on the ATL, but with a Late Filer tag. This means they enjoy most ATL benefits but at Late Filer rates (which are higher than Active Filer rates for property transactions). The key difference is on Section 236C (property sale: 7.5% vs 4.5%) and Section 236K (property purchase: 4.5% vs 1.5%).

Q3: If I file late for Tax Year 2025 as well, will I remain a Late Filer?
Yes. If you also file Tax Year 2025 late, you will remain a Late Filer — the upgrade to Active Filer only happens when you file on time. Consistently filing on time before September 30 is the only way to maintain and regain Active Filer status.

Q4: Does the Rs. 1,000 surcharge replace the penalty for late filing?
No. The Rs. 1,000 surcharge is specifically for ATL inclusion as a Late Filer. The penalty under Section 182 for late filing is a separate obligation — minimum Rs. 1,000 or higher depending on the delay and income. Both may apply simultaneously.

Q5: I am a Late Filer — which withholding tax rates apply to me?
Late Filers pay Late Filer rates on property transactions (Section 236C: 7.5% on sale, Section 236K: 4.5% on purchase) but generally pay the same rates as Active Filers on bank profit (Section 151: 20%), dividends (Section 150: 15%), and international card payments (Section 236Y: 5%). Always verify current rates as these may change through Finance Acts.

Conclusion

S.R.O. 1638(I)/2024 dated 18 October 2024 has made significant improvements to how the ATL is managed in Pakistan. The shift from weekly to daily ATL updates means late filers can appear on the ATL within one working day of filing and paying the surcharge. And the clear pathway from Late Filer to Active Filer — simply file the next year's return on time — removes the ambiguity that previously surrounded this transition.

The practical message is clear: if you missed last year's deadline, file the late return and pay the surcharge immediately to become a Late Filer. Then file next year's return on time by September 30 to automatically upgrade to Active Filer status. Every day spent as a Non-Filer with a property transaction pending costs significantly more in advance tax than the effort of filing the return.