Budget 2026-27 Taxation July 1, 2026Hamza Shahnawaz Taxpayers can avoid surcharge by pledging not to acquire any property for six months ISLAMABAD: In a significant relief measure for individual taxpayers, the Finance Act, 2026 has introduced a provision allowing the Federal Board of Revenue (FBR) to waive the late return filing surcharge for individuals who submit a prescribed undertaking restricting future property purchases. The amendment to the Income Tax Ordinance, 2001 offers eligible taxpayers a chance to avoid the surcharge imposed on late filing of income tax returns, provided they agree to refrain from acquiring any property for a specified period. Six-Month Property Restriction Required Under the newly introduced provision, the requirement to pay the late return filing surcharge will not apply to an individual who furnishes an undertaking before the Commissioner of Inland Revenue. In the undertaking, the taxpayer must declare that they will not purchase, acquire, or obtain ownership or beneficial interest in any property for six months from the date the undertaking is submitted. The declaration must be furnished in the form prescribed by the FBR. Relief Linked to Compliance The amendment is designed to provide relief to individuals who have failed to file their tax returns on time while encouraging future tax compliance. Instead of immediately imposing the surcharge, the law…