Friday Jan 22, 2021
ISLAMABAD: President Arif Alvi on Thursday promulgated the Income Tax Amendment Ordinance 2021 which extends the deadline for availing tax amnesty scheme for the construction sector, reports The News.
The Income Tax Amendment Ordinance 2021 has been made effective from January 1, 2021.
Under the ordinance, the income computed and tax payable shall be on a project-to-project basis, which shall be calculated and paid at the specified rates. It also suggests that the estimated project life for tax purposes should not exceed three and a half years.
The ordinance states that in case of existing incomplete projects, the estimated project life will be considered four years maximum from tax year 2020 through tax year 2023.
It also states that the tax payable will be reduced by the percentage of completion up to the last day of the accounting period pertaining to tax year 2019 or tax year 2020, as declared in the registration form.
Provided further that where the benefit of sub-section 3 of section 100D is required to be claimed by builder or developer, the project shall be registered latest by June 30, 2021, Ordinance 2021 said.
Under the Ordinance, the last date for seeking immunity by builders and developers from probing their source of funds, and availing fixed tax regime has been extended from December 31, 2020, to June 30, 2021.
Similarly, the last date for builders and developers who are seeking a fixed tax regime has been extended from December 31, 2020, to December 31, 2021.
The ordinance also extends the last date for completion of projects till September 30, 2023, compared to the earlier deadline of September 30, 2022. While the last date for buyers of housing units and plots has been extended from September 30, 2022, to March 30, 2023.
The ordinance has also amended the registration and filing of returns by builders and developers.
Under the revised procedure, a builder or developer will electronically register a project on IRIS through the FBR website on or before December 31, 2021.