ISLAMABAD: To avoid penalty on the corporate sector, the Federal Board of Revenue (FBR) has granted another extension to the sector to switch to digital mode of payments, up to January 31st, 2022.
In this regard, the FBR has issued an income tax circular 11 of 2021-22, here on Tuesday, on the extension in deadline stipulated under Section 21(Ia) of the Income Tax Ordinance, 2001.
Sources told Business Recorder here on Tuesday that the FBR had deferred implementation of the digital mode of payment by the corporate sector till the effective date is notified by the Board under the Finance (Supplementary) Bill, 2021.
Legally speaking, the deadline for the corporate sector for switching over to the digital mode of payments expired on December 31, 2021, and it is now applicable from January 1, 2022.
Now, the FBR has issued the circular to cover the intervening period from the date of the issuance of the Finance (Supplementary) Bill, 2021 and passage of the said bill.
Corporate sector: FBR defers implementation of digital mode of payment
The circular would also ensure that the FBR would not penalise the corporate sector for not shifting over to digital mode of payment.
The proposed, Finance (Supplementary) Bill, 2021 is not law till passed by the Parliament and assent given by the president.
Technically, the digital mode of payment for the corporate sector becomes applicable from January 1, 2022.
If the FBR issues Income Tax Circular for further extension, it would not be applicable in January 2022, the tax experts added.
The income tax circular issued on Tuesday said: In exercise of the powers conferred under Section 214A of the Income Tax Ordinance, 2001 (hereinafter “the Ordinance”) and taking cognizance of various representations filed by the taxpayers, the FBR is pleased to extend the deadline for digital payments by corporate sector stipulated under Section 21(1a) of the Ordinance up to January 31, 2022.
Copyright Business Recorder, 2021
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