ISLAMABAD: The Federal Board of Revenue (FBR) has proposed a six-month restriction on property purchases for individuals who file their income tax returns after the prescribed deadline and seek inclusion in the Active Taxpayers’ List (ATL) without paying the applicable surcharge.
The proposal is part of draft amendments to the Income Tax Rules 2002 issued through SRO 1690. Under the proposed mechanism, a late filer could qualify for ATL inclusion without the normal surcharge by giving an undertaking not to purchase property or acquire ownership or a beneficial interest in property for six months.
The FBR has invited stakeholders to submit their views on the proposed amendments within one week. This means the measure remains at the consultation stage and could be revised or withdrawn before any final notification.
The proposed restriction would effectively give late filers a choice between paying the applicable surcharge or accepting a temporary restriction on property-related acquisitions. The exact procedure for recording and monitoring the undertaking would depend on the final rules.
The draft language also covers more than a conventional property purchase. It refers to acquiring ownership or a beneficial interest, potentially extending the restriction beyond transactions where a person simply registers a property in their own name. However, the available proposal does not provide detailed clarification on every type of property transfer.
The measure reflects the government’s broader efforts to connect tax compliance with financial and property transactions. Property purchases already involve several tax and documentation requirements, making taxpayer status an important consideration for buyers.
If the proposal is approved in its current or a modified form, late filers planning to purchase property would need to consider the potential six-month restriction before choosing how to regularise their ATL status.
For now, buyers and property professionals should not treat the proposed ban as an active restriction. The final position will depend on the feedback received by the FBR and any amendments or notification issued after the consultation process.
