The Federal Board of Revenue (FBR) has introduced a new automated system (portal) to facilitate taxpayers in obtaining exemptions or paying taxes under section 7E of the Income Tax Ordinance, 2001.
Effective from September 1, 2023, the new online system, known as “IRIS,” offers taxpayers the convenience of applying for exemptions or paying taxes under section 7E without the need to visit the tax commissioner’s office. This digital platform is designed to streamline the process and reduce inconvenience for taxpayers.
The FBR’s IRIS system operates in parallel with the old system, allowing taxpayers the option to choose between the new online portal or the traditional method to ensure a smooth transition.
Additionally, the new automated system includes a special dedicated payment challan for non-filers, simplifying the payment process for those who do not have a tax filing history.
Muhammad Ahsan Malik, a real estate expert, explained that this updated software by the FBR marks a significant step toward digitizing tax-related processes. Taxpayers can now obtain exemption certificates, pay taxes, or generate challans from the comfort of their homes, eliminating the need to physically visit the Commissioner Inland Revenue (FBR).
Furthermore, the FBR’s IRIS Portal has removed the discretion of Commissioners Inland Revenue in deciding matters related to section 7E, providing a more standardized and efficient process.
Under the Finance Act of 2022, section 7E was introduced, which treats every resident person as having derived income equivalent to five percent of the fair market value of capital assets in Pakistan, subject to specific exclusions as defined by the law.
Automated enhancements to the FBR’s IRIS system, implemented by the Pakistan Revenue Automation Limited (PRAL), enable taxpayers to access section 7E documents through their IRIS accounts. If any tax payments are due under the system, taxpayers can make payments or the system will automatically grant exemptions based on specific criteria.
For cases where tax payments are necessary under the automated system, taxpayers can approach their relevant withholding agent, such as the property registrar, to fulfill their tax obligations.