FBR to Give Time Extension to Taxpayers Aggrieved from Section 7E

In a major development, the Federal Board of Revenue (FBR) has decided to give time extension to the taxpayers to file their income tax returns, where taxpayers feel aggrieved from the controversial section 7E (tax on deemed income basis of the immovable properties) of the Income Tax Ordinance 2001.

On Tuesday, the FBR made this commitment before the Lahore High Court (LHC) during the case of the constitutionality of Section 7E (tax on deemed income) of the Income Tax Ordinance, 2001, inserted through the Finance Act, 2022.

This means that now the taxpayers can get the extension in time for filing of income tax returns about the declarations to be made in section 7E (tax on deemed income of the immovable properties) of the Income Tax Ordinance 2001.

The order issued by the LHC stated that the reply has been filed by the federal government as well as the office of the Attorney General for Pakistan (AGP). The reply on behalf of FBR has also been filed.

LTO Lahore Order

Regarding interim relief, Chief Commissioner, Large Taxpayer Office (LTO) Lahore Badshah Khan Wazir, on instructions from FBR Chairman Asim Ahmed, said that the petitioners in this and connected petitions or any other taxpayer, feeling aggrieved from the impugned Section 7E of the Income Tax Ordinance, 2001 (Ordinance of 2001), if approaches with an application in writing, under the law, for extension of time to file the return, the same shall be entertained and time shall be granted.

However, the taxpayer shall establish before the concerned Commissioner that he falls within the mischief of impugned Section 7E of the Ordinance of 2001.

LHC has relisted the case for 18th October 2022, the order of the court read.



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