SECTION 7E FBR TAX ON DEEMED INCOME
SECTION 7E FBR TAX ON DEEMED INCOME
For tax year 2022 and beyond, income specified in this section shall be subject to taxation at the rates outlined in Division VIIIC of Part-I of the First Schedule.”
A resident individual will be considered to have earned taxable income under this section equal to five percent of the fair market value of capital assets located in Pakistan, excluding the following, on the last day of the tax year
- Self-using one capital asset;
- owned business premises for business person is a Filer at any time during the year;
- owned agriculture land for agriculture activity (excludes farmhouses and land annexed to them);
- Capital assets allotted to certain individuals such as Shaheeds or dependents of Shaheeds belonging to Pakistan Armed Forces, war wounded persons serving Pakistan Armed Forces, Federal and Provincial Government and more;
- Income from any property which is chargeable to tax under the Ordinance and tax on the same has been paid in same period
- Same year purchasing capital asset on which advance tax u/s 236K has been paid
- Assets below 25 Million
- Constructor,builders and developers those are registered with Directorate General of Designated Non-Financial Businesses and Professions of Board (DNFBP)
Above are the detais of SECTION 7E FBR
122(9) (Notice to amend assessment) from FBR
122(9) (Notice to amend assessment) from FBR
122(9) (Notice to amend assessment) from FBR where you have mentiond Proceedings are being initiated against you on account of definite information u/s 122(5) received from Directorate of Intelligence & Investigation regarding purchase of property amounting to Rs.13,010,000/- during the tax year 2022
You have declared nil income whereas you made investment to purchase aforementioned property amounting to Rs. 13,010,000/- and have paid advance tax thereon u/s 236k amounting to Rs.260,200/- which you have failed to declare in your wealth statement for the tax year under consideration. The income declared does not commensurate with such a huge investment.
You are therefore given the opportunity to show cause u/s 122(9) read with section 122(5) as why the investment made to purchase the property amounting to Rs. 13,010,000/- may not be considered concealed income and may not be added in your total income under section 111(1)(b) of the Income Tax Ordinance, being income from “other sources”
This will also render you liable to the penalty of 100% of the amount of tax sought to be evaded u/s 182 of the Ordinance.
You are required to provide the following documents:
- All bank account statements from 01.07.2021 to 30.06.2022.
- Sale/ purchase agreement of the property purchased
- Source of investment made to purchase the property
- Any Other documents relevant to your case
The reply substantiated by the documentary evidence should reach the office of the undersigned by the due date. In case of failure the same shall be considered as concealed income under section 111(1) (b) of the ordinance 2001 and the assessment u/s 120 will be amended accordingly u/s 122(1).
Reason for received 122(9) (Notice to amend assessment) from FBR
During the filing of tax return either you missed to mention the taxes in 236k section or you missed to add this
property.
When you will receive 122(9) (Notice to amend assessment) from FBR
Before the finalizing of assessment the officer will give you opportunity to provide written proper response.
What you do if you received 122(9) (Notice to amend assessment) from FBR
When you received 122(9) (Notice to amend assessment) from FBR then within due date you should proper reply this notice with evidence in attachment portion. If you cannot reply hire a tax advisor who will give proper reply.
If you not reply received 122(9) (Notice to amend assessment) from FBR within due date then what will happen ?
Fbr will give you three opportunity of clear 15 days should be offer to the assesses before making assessment.
What If no compliance Made of received 122(9) (Notice to amend assessment) from FBR?
If no reply on time after given three opportunities they will send you demand notice.You may file appeal within thirty days after the reciving of demand notice
Contact us for replying of 122(9) (Notice to amend assessment)
How to file tax retrun in Pakistan
In Pakistan, the Federal Board of Revenue (FBR) provides an online system for filing taxes called the e-Filing system. Here are the general steps to file your taxes online in Pakistan:
Register for an e-Filing account by visiting the FBR website and providing your personal and business information.
Gather all necessary documents, such as your income statement, tax withholding certificates, and any other relevant documents.
Log in to your e-Filing account and enter your financial information, including your income and deductions.
Submit your tax return and make any necessary payments online.
Keep records of your tax return and payment receipts for future reference.
Please note: The process and requirement may change over time, please refer to FBR website for the updated information.
NTN Registration IRIS
NTN Registrationn IRIS (National Tax Number) form from the Federal Board of Revenue (FBR) in Pakistan online, you can follow these steps:
Go to the FBR website (https://www.fbr.gov.pk/)
On the homepage, click on the “Online Services” tab.
From the dropdown menu, click on the “NTN/STRN Inquiry” option.
On the next page, you will see a form titled “NTN/STRN Inquiry Form“.
Fill out the form with the required information, including your name, address, and CNIC (Computerized National Identity Card) number.
Click on the “Submit” button.
If you are eligible to get an NTN Registration IRS, the FBR will provide you with a copy of the NTN form. You will need to fill it out and submit it to the FBR along with the required documents to complete the process.
Note: The FBR may require you to provide additional documentation or information in order to process your NTN Registration IRIS application.