Mr. Ashfaq Tola, the chairman of Pakistan’s Reforms and Resource Mobilization Commission (RRMC), proposed to the Federal Board of Revenue (FBR) in a recent meeting that taxpayers should be given the option to address the tax on immovable properties under section 7E of the Income Tax Ordinance, 2001 (ITO) while filling out the online declaration form through the ‘IRIS’ system.
The suggestion was made after several taxpayers disputed the validity of this requirement, leading to the filing of multiple cases in provincial High Courts.
The appellant taxpayers were granted leave to appeal by the Supreme Court of Pakistan against the Sindh High Court’s (SHC) Order, and a stay order was issued in their favor. However, it was subject to the condition that they deposit fifty percent of the tax demand. Additionally, Section 236C was amended by the Finance Act 2023 (Act 23) by adding subsection (2A).
The amendment obligates individuals to provide evidence of payment of the deemed income tax liability on any immovable property before its sale or transfer. Moreover, the FBR released Circular No. 01 of 2023-24 on July 21, 2023, which outlines the payment rules and methods.
Mr. Ashfaq Tola has proposed the inclusion of exempted properties and stay orders in taxpayer’s online tax information. This proposal aims to improve compliance with section 236C (2A) of the Income Tax Ordinance, 2001, and establish a digital database of eligible taxpayers.
Furthermore, this would simplify the process of real estate registration. Tola also recommends shifting the certificate application process online through IRIS to boost efficiency.
For the latest Real Estate News and Blogs, visit Realtorspk blogs.
