Islamabad November 02, 2021: The Federal Board of Revenue (FBR) has extended the deadline for digital payments by the corporate sector stipulated in Section 21 (la) of Income Tax Ordinance-2001 up to 30th November, 2021.
FBR has exercised this power conferred under Section 214A of the Income Tax Ordinance-2001 after receipt of various representations filed by the taxpayers, said a press release receive here today.
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The measure has already come under heavy criticism from various quarters including the Karachi Tax Bar Association (KTBA) and the Federation of Pakistan Chambers of Commerce and Industry (FPCCI).
The KTBA said that the measure, which makes it mandatory to incur business expenditures for its admissibility broadly via digital means, “is remarkably in contradiction with other modes of payment through banking channels”.
Similarly, the FPCCI also strongly recommended to the FBR to immediately defer policy of switching over to the digital mode of payments for a four-month period, as it is not possible for the business community to adopt it from November 1, 2021.