July 30, 2024 Karachi, July 30, 2024 – In a bid to ensure timely compliance with income tax filing requirements, the Federal Board of Revenue (FBR) has announced the imposition of higher withholding tax rates on late filers and non-filers. This significant change has been enacted through amendments in the Finance Act, 2024. The FBR released Circular No. 1 of 2024-25 of Income Tax, which elaborates on crucial amendments made to the Income Tax Ordinance, 2001. The Finance Act, 2024 has expanded the scope of Section 100BA and the Tenth Schedule of the Ordinance to include additional categories of taxpayers subject to higher withholding taxes. Prior to these amendments, Section 100BA of the Income Tax Ordinance, 2001, outlined higher withholding tax rates for individuals not listed in the Active Taxpayers List (ATL). However, the recent changes have broadened this provision to target those who, despite appearing in the ATL, have failed to file their income tax returns by the specified deadlines. Specifically, the amendment to Section 100BA and the introduction of Rule 1A in the Tenth Schedule now categorize taxpayers into two distinct groups for the application of higher withholding tax rates. The first group comprises individuals not appearing in the ATL at the time of a transaction. The second group includes those who are listed in the ATL but have not filed their returns within the due date…