The Federal Board of Revenue (FBR) has further extended the deadline for digital payments by the corporate sector till 31 January 2022.
The FBR has issued a circular in this regard, titled “Operations (Income Tax) Subject: Extension in Deadline Stipulated under Section 21(1a) of the Income Tax Ordinance, 2001.”
The circular states, “The Federal Board of Revenue is pleased to extend the deadline for digital payments by corporate sector stipulated up to 31 January 2022.”
Sources told ProPakistani that the decision of extending the deadline has been taken after requests of the taxpayers.
Previously, the FBR had extended the deadline for digital payments by the corporate sector up to November 30, 2021.
Tax experts told Propakistani that at the moment, the corporate sector practically could not switch over to the digital mode of payment on short notice in the absence of any definition of “digital mode.” Therefore, the tax machinery had to clarify the definition of the “digital mode,” as the business community was not clear regarding which payment comes within the said purview.
Notably, the government wants to encourage the taxpayers to shift from manual mode to digital mode for tax payments to reduce time and risk of corruption.