ISLAMABAD: The Federal Board of Revenue (FBR) has amended the banking schedule of the Income Tax Ordinance 2001 to align the banking income close to the taxable income from July 1, 2025. The FBR’s budget explanatory circular on Finance Act 2025 stated that the FBR has introduced change in the seventh Schedule Provisions for Banking Companies Seventh Schedule.
The seventh schedule has been amended to align the banking income close to the taxable income. In this regard, rental expenses and expenses on refurbishment of offices are allowed in a specified manner as laid down in the provisions.
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The expense on account of bad debts is also reinforced in accordance with the laid down principles. Some filing requirements are also placed upon the external auditors to bring authenticity in expense claim on account of bad debts.
The Board reaffirms its commitment to provide every support for facilitating compliance to the newly introduced provisions in the ordinance. The Board will also ensure that the provisions related to enforcement be carried out in judicious manner with redressal committees in place comprising of representatives of business community and the Board, FBR added.
Copyright Business Recorder, 2025
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