The Federal Board of Revenue (FBR) has prescribed the relevant form for the taxpayers for payment of tax under section 7E – the tax on deemed income basis under the Income Tax Ordinance, 2001. This new way of payment or new format of payment is now enunciated for the tax payers.
In this regard, the board issued SRO.1829(I)/2021 here on Tuesday to issue a new form through proposed amendments in Income Tax Rules 2002.
According to the new form, the FBR has asked the taxpayers to specify the total value of the capital assets taxable under section 7E; deemed income under section 7E and tax on deemed income under section 7E. The form has also prescribed separate columns for the cost/declared value and fair market value of the immovable property.
This notification would be applicable for the tax year 2022.
The said form would be part of the income tax return for the tax year 2022 to be filed by the extended period of 31st October 2022.
FBR to Extend Time for Filing Income Tax Returns
The FBR had assured the Lahore High Court (LHC) that it will give an extension of time to the taxpayers to file income tax returns, who feel aggrieved by the impugned Section 7E of the Income Tax Ordinance, 2001.
The board added 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, it is clarified that the taxpayer shall establish before the concerned Commissioner that he falls within the mischief of impugned Section 7E of the Ordinance of 2001.