The Federal Board of Revenue (FBR) has unveiled a new proposal for late tax return filers. The draft arrives with just a week left before the final deadline. Under the plan, individuals could join the Active Taxpayers’ List without paying the Rs. 25,000 ATL surcharge. However, the relief comes with a condition.

Late filers must promise not to acquire any property for six months. Moreover, the FBR has given stakeholders only seven days to share objections or suggestions. Stakeholders who want changes will need to move quickly.

The FBR issued the draft amendment to the Income Tax Rules, 2002, on October 6, 2026. It would amend Rule 81B by adding new sub-rules (2B), (2C), and (2D). Furthermore, the draft proposes adding Part XV to the First Schedule to introduce Form ATL-U.

An individual who files the latest return after the due date or extended deadline could submit an undertaking through Form ATL-U in IRIS under Section 182A(3). Therefore, the taxpayer could enter the ATL without paying the surcharge. The six-month clock would start on the date IRIS generates the electronic acknowledgement. During this period, the taxpayer could not purchase property or gain ownership or beneficial interest in any property.

The FBR would verify compliance using information from authorities, agencies, registries, financial institutions, and other sources. If it finds a purchase during the six months, the taxpayer would first get a chance to explain. Finally, if the violation stands, the benefit would end from the date it occurred. The taxpayer’s ATL status would then follow Rule 81B(2A).

The new form would ask for the taxpayer’s name, CNIC or NTN, tax year, and return filing date. Applicants would also provide the IRIS acknowledgement or reference number and the date of the undertaking. Still, the proposal is not final and remains open to change. Should the FBR approve it, the plan would let late filers skip the ATL surcharge, though with a property restriction.