Islamabad: According to news reported on August 6, the Federal Board of Revenue (FBR) is planning to implement a cutting-edge online function within the revised "IRIS" system that will enable citizens to either claim exemptions or make a 1% tax payment under Section 7E for immovable property. According to reports, the board made two important announcements for the real estate industry that were intended to make property transactions more convenient and transparent.
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The sources claim that the FBR has launched an online service that does away with the requirement that taxpayers physically visit the Commissioner of Inland Revenue's office. Additionally, the change will successfully allay worries about exploitation throughout the exemption certificate application procedure. Additionally, the FBR has decided to put off the release of new valuation tables for real estate till next month which were initially planned for release in August 2023.
The decisions, which were made public after a meeting between FBR Chairman Amjad Zubair Tiwana and officials from the real estate industry at the FBR Headquarters, are especially important. They discussed Section 7E of the Income Tax Ordinance requirement that every seller of real property obtain an exemption certificate from the Commissioner of Inland Revenue or pay a 1% tax.
Notably, the rules mentioned in Section 7E of the Income Tax Ordinance apply to all citizens of Pakistan, tax filers as well as non-filers. Previously, tax filers who received an exemption under this provision were required to go in person to the appropriate commissioner to pick up documentation of their exemption. The FBR is getting ready to introduce a user-friendly online platform that will streamline the process of acquiring exemption certificates in a forward-thinking approach. It was emphasised that these proposals represent a forward-looking step for the real estate industry, embracing efficiency and digitalization while ensuring fair taxation practices.
