Islamabad: The Federal Board of Revenue (FBR) introduced an online platform to assist citizens in obtaining exemption certificates or making tax payments for the transfer of immovable properties under Section 7E, as reported by news sources On Friday, September 1.
Taxpayers can now easily fulfill their tax obligations or acquire exemption certificates under Section 7E of the Income Tax Ordinance, 2001, through the newly integrated online feature within the ‘IRIS’ system. Transactions falling within the purview of Section 7E can be completed without necessitating visits to the Commissioners Inland Revenue. Additionally, the newly automated system includes a dedicated payment challan for individuals who are not tax filers.
The Finance Act of 2022 introduced a new section, Section 7E, which came into effect from the tax year 2022 and onwards. This section mandates that every individual residing in Pakistan is deemed to have earned income equal to five percent of the fair market value of their capital assets located within Pakistan. It’s important to note that specific exclusions and exceptions apply to certain capital assets as per the relevant tax laws.
To facilitate the implementation of this new provision, the Pakistan Revenue Automation Limited (PRAL) has undertaken automated adjustments within the Integrated Revenue Information System (IRIS) of the Federal Board of Revenue (FBR). These modifications aim to streamline the assessment and reporting procedures in accordance with the updated tax regulations.