Corporates may switch over to digital tax payments in 40 days

Published September 21, 2021
The Federal Board of Revenue has introduced significant changes to the Income Tax ordinance, 2001. — AFP/File
The Federal Board of Revenue has introduced significant changes to the Income Tax ordinance, 2001. — AFP/File

ISLAMABAD: The Federal Board of Revenue (FBR) is considering allowing the corporate taxpayers a grace period of 40 days to switch over to the digital mode of payments effective from Nov 1.

An official announcement on Monday said that in the intervening period corporate taxpayers may use the traditional banking transaction methods including cross cheques, cross-bank draft, cross pay orders, or any other crossed banking instrument showing transfer of amount from the business bank account of the taxpayer in addition to digital mode of payment as long as those are compliant with the law.

The amendments were introduced under the Tax Laws (3rd Amendment) Ordinance, 2021. The FBR has introduced significant changes to the Income Tax ordinance, 2001, with a view to documenting the economy, capturing the supply chains and broadening the tax base.

Under the new measures, the scope of payments is restricted via traditional banking channels on account of expenditures exceeding Rs250,000 to taxpayers other than companies. Consequently, it is now mandatory for companies to make payments on expenditures exceeding Rs250,000 through digital mode only.

However, expenditures on account of utility bills, freight charges, travel fair, and payment of taxes and fines would continue to be admissible either paid in cash or traditional banking instruments.

Published in Dawn, September 21st, 2021

Opinion

Editorial

Taking stock
Updated 14 Aug, 2022

Taking stock

There are numerous reasons behind our predicament, and many of our wounds are self-inflicted.
Medicine in short supply
14 Aug, 2022

Medicine in short supply

THAT rising import prices of pharmaceutical raw materials and increasing production costs of manufacturers have...
Police excesses
Updated 13 Aug, 2022

Police excesses

Crass thuggery and victimisation of ordinary citizens are unlikely to earn govt plaudits from any quarter.
Afghan cleric’s killing
13 Aug, 2022

Afghan cleric’s killing

THAT a suicide bomber belonging to the self-styled Islamic State group managed to target a senior Taliban cleric in...
No room for hockey
13 Aug, 2022

No room for hockey

THERE have been accusations and clarifications as the blame game rumbles on. Yet despite workers of the PTI ...
Militancy redux
Updated 12 Aug, 2022

Militancy redux

There is fear and confusion all around, and it is for the state to bring clarity to the situation.