Businesses can switch to digital tax payments in 40 days – Journal

ISLAMABAD: The Federal Board of Revenue (FBR) is considering giving corporate taxpayers a 40-day grace period to switch to digital payment effective November 1.

An official announcement released on Monday said that in the meantime, corporate taxpayers can use traditional bank transaction methods, including cross checks, cross bank drafts, cross payment orders or any other cross banking instrument showing the transfer of the bank. amount of the professional bank account of the taxpayer in addition to the digital payment method as long as these comply with the law.

The changes were introduced under the Tax Laws Ordinance 2021 (3rd Amendment).

Under the new measures, the scope of payments is restricted through traditional banking channels due to spending exceeding Rs 250,000 for non-business taxpayers. Therefore, it is now mandatory for companies to make payments on expenses exceeding 250,000 rupees via digital mode only.

However, expenses for utility bills, transportation costs, the travel fair, and payment of taxes and fines would continue to be eligible, either in cash or through traditional banking instruments.

Posted in Dawn, September 21, 2021

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