Extension for Digital Payment in Compliance to Section 21(la)
The deadline of Extension for Digital Payment in compliance to Section 21(la) in which FBR has required companies to use digital modes of payments for business expenses.
Earlier an amendment has been brought and companies were told to make payments more than Rupees 250,000 digitally 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 Federal Board of Revenue 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.
FBR through legislation made it mandatory that companies make payments through Digital Means.
What is meant by Digital Means
Payment through online means, e-Wallet, online modes of payments, internet banking and through electronic means of payment.
Digital Payment does not include payments via cheques, Pay orders, demand drafts and any other means that include paper banking.
For more information on FBR’s new regulations / circulars/ SROs/ amendments in taxation laws in Pakistan please visit https://www.fbr.gov.pk/