The Federal Board of Revenue (FBR) has taken a significant step by introducing an online facility on September 1st, enabling citizens to obtain exemption certificates or pay taxes related to the transfer of immovable properties under Section 7E.
This new online feature has been seamlessly integrated into the ‘IRIS’ system, making it easier for taxpayers to fulfill their obligations. Transactions falling under Section 7E can now be efficiently processed without the need for physical visits to the Commissioners Inland Revenue offices.
Additionally, the newly automated system incorporates a dedicated payment challan specifically designed for non-filers.
Section 7E, a provision introduced under the Finance Act of 2022, has become effective from the tax year 2022 onward. It mandates that every individual residing in Pakistan is deemed to have earned income equivalent to five percent of the fair market value of their capital assets located within Pakistan. It’s crucial to note that specific exclusions and exceptions apply to certain capital assets, as prescribed by the relevant tax laws.
To facilitate the implementation of this new tax provision, the Pakistan Revenue Automation Limited (PRAL) has taken the initiative to automate modifications within the Integrated Revenue Information System (IRIS) of the Federal Board of Revenue (FBR).
These changes have been designed to streamline the assessment and reporting processes, ensuring compliance with the updated tax regulations.
This move not only simplifies tax compliance for individuals but also enhances the efficiency and transparency of the tax collection system, ultimately contributing to a more robust and user-friendly tax administration for the benefit of taxpayers and the government alike.
This online facility represents a significant leap in digitizing tax processes, aligning with the broader goal of fostering a more efficient and accessible tax ecosystem in Pakistan. By enabling taxpayers to handle Section 7E transactions online, the FBR is not only reducing the burden of physical visits but also promoting greater tax compliance.