Pkrevenue.com

Category: Budget

This is parent category of budgets presented by Pakistan government. Here you will find year-wise federal and provincial budgets.

  • Punjab presents Rs2,653 billion outlay budget 2021/2022; salary and pension increased by 10 percent

    Punjab presents Rs2,653 billion outlay budget 2021/2022; salary and pension increased by 10 percent

    LAHORE: The Punjab government on Monday presented a total outlay of Rs2,653 billion provincial budget for fiscal year 2021/2022, which is 18 percent higher than the outgoing fiscal year.

    Punjab Finance Minister Makhdoom Hashim Jawan Bakht presented the budget in the provincial assembly. He announced an increase of 10 percent in salary and pension of all provincial government employees. Besides, the provincial government also announced a 25 percent increase as special allowance for those employees between grade – 1 to grade -19, who were never granted any type of allowance in the past.

    The Punjab government also announced to increase monthly minimum wage from Rs17,500 to Rs20,000.

    Giving details of the budget 2021/2022, the provincial minister said that the province would get Rs1,684 billion under National Finance Commission (NFC) Award, which would be 18 percent from the outgoing fiscal year.

    He said that the provincial revenues have been estimated at Rs405 billion for the next fiscal year, which is 28 percent higher than the outgoing fiscal year.

    The Punjab government allocated Rs560 billion for annual development plan (ADP) for next fiscal year, which is 66 percent higher than the outgoing fiscal year.

    The provincial minister announced tax concessions worth Rs50 billion during the fiscal year starting from July 01, 2021.

    The minister said that an amount of Rs40 billion would be granted as tax incentive for construction sector during the next fiscal year. This concession would be available by maintaining stamp duty at one percent during the next fiscal year.

    The provincial government decided to continue reduced rate of sales tax on services from 16 percent to five percent during the next fiscal year. The reduced rate of sales tax would be available on services included small hotels, guest houses, marriage halls, lawns, caterers, IT services, tour operators, jims, property dealers, rent a car service, cable tv oprators, treatment of textile and leather, commission agent of commodity operation, auditing accounting and tax consultancy services, photography and parking services etc.

    In addition to mentioned above services, the provincial government decided to add more 10 services into reduced rate of tax regime. The government allowed reduced rate of sales tax on services from 16 percent to 5 percent to beauty parlor, fashion designers, home chefs, architects, laundries and drycleaners, supply of machinery, warehouse, dress designers and rental bulldozers etc.

    The government decided to reduced sales tax rate from 19 percent to 16 percent on call centers.

  • Bill withdraws income tax exemptions, concessions under Second Schedule

    Bill withdraws income tax exemptions, concessions under Second Schedule

    ISLAMABAD: A bunch of income tax exemptions and concessions has been proposed through Finance Bill, 2021, which will be implemented from July 01, 2021.

    According to commentary on budget 2021/2022 by PwC A. F. Ferguson & Co. Chartered Accountants, the following exemptions and concessions have been withdrawn through Finance Bill, 2021:

    Salary income of the Pakistani seafarer:

    (a) working on Pakistan flag vessel for 183 days or more during a tax year; or

    (b) working on a foreign flag vessel provided that such income is remitted to Pakistan not later than two months of the relevant tax year through normal banking channel.

    Any special allowance or benefit (not being entertainment or conveyance allowance) or other perquisite within the meaning of section 12 specially granted to meet expenses wholly and necessarily incurred in the performance of the duties of an office or employment of profit.

    Any income of a newspaper employee representing Local Travelling Allowance paid in accordance with the decision of the Third Wage Board for Newspaper Employees constituted under the Newspaper Employees (Conditions of Service) Act, 1973, published in Part II of the Gazette of Pakistan, Extraordinary, dated the 28th June, 1980.

    The following perquisites received by an employee by virtue of his employment, namely:-

    (i) free or subsidized food provided by hotels and restaurants to its employees during duty hours;

    (ii) free or subsidized education provided by an educational institution to the children of its employees;

    (iii) free or subsidized medical treatment provided by a hospital or a clinic to its employees; and

    (iv) any other perquisite or benefit for which the employer does not have to bear any marginal cost, as notified by the Board.

    Any profit on debt payable to a nonresident person-

    (i) in respect of such private loan to be utilized on such project in Pakistan as may be approved by the Federal Government for the purposes of this clause, having regard to the rate of profit and the terms of repayment of the loan and the nature of project on which it is to be utilized;

    (ii) on a loan in foreign exchange against export LC credit which is used exclusively for export of goods manufactured or processed for exports in Pakistan

    (iii) being a foreign individual, company, firm or association of persons in respect of a foreign loan as is utilized for industrial investment in Pakistan provided that the agreement for such loan is concluded on or after the first day of February, 1991, and is duly registered with the State Bank of Pakistan:

    Provided that this clause shall have retrospective effect of exemption to the agreements entered into in the past and shall not be applicable to new contracts after the 30th day of June, 2010, prospectively.

    Any income derived from a private foreign currency account held with an authorised bank in Pakistan, or certificate of investment issued by investment banks in accordance with the Foreign Currency Accounts Scheme introduced by the State Bank of Pakistan, by a resident individual who is a citizen of Pakistan:

    Provided that the exemption under this clause shall not be available in respect of any incremental deposits made in the said accounts on or after the 16th day of December, 1999, or in respect of any accounts opened under the said scheme on or after the said date.

    Any distribution received by a taxpayer from a collective investment scheme registered by the Securities and Exchange Commission of Pakistan under the Non-Banking Finance Companies and Notified Entities Regulations, 2007, including National Investment (Unit) Trust or REIT Scheme or a Private Equity and Venture Capital Fund out of the capital gains of the said Schemes or Trust or Fund :

    Any income chargeable under the head “capital gains” derived by a resident individual from the sale of constructed residential property: Provided that exemption under this clause shall only apply, if

    (a) at the time of sale, the residential property was being used for the purpose of personal accommodation by the resident individual, his spouse or dependents and for which any of the utility bills is issued in the name of such individual;

    (b) the land area of the property does not exceed 500 square yards in case of a house and 4000 square feet in case of a flat; and

    (c) exemption under this clause has not previously been availed by the individual, his spouse or dependents.

    Any income derived by a person from plying of any vehicle registered in the territories of Azad Jammu and Kashmir, excluding income arising from the operation of such vehicle in Pakistan to a person who is resident in Pakistan and non-resident in those territories.

    Profit and gains derived by a taxpayer from an industrial undertaking set up in Larkano Industrial Estate between the 1st day of July, 2008 and the thirtieth day of June, 2013, both days inclusive, for a period of ten years beginning with the month in which the industrial undertaking is set up or commercial production commenced, whichever is the later.

    Exemption under this clause shall apply to an industrial undertaking which is owned and managed by a company registered under the Companies Ordinance 1984 (XLVII of 1984) and formed exclusively for operating the said undertaking.

    Profit and gains derived by a taxpayer, from a fruit processing or preservation unit set up in Balochistan Province, Malakand Division, Gilgit Baltistan and FATA between the first day of July, 2014 to the thirtieth day of June, 2017, both days inclusive, engaged in processing of locally grown fruits for a period of five years beginning with the month in which the industrial undertaking is set up or commercial production is commenced, whichever is later.

    Profit and gains derived by a taxpayer, from an industrial undertaking set up between 1st day of July, 2015 and 30th day of June, 2016 engaged in operating warehousing or cold chain facilities for storage of agriculture produce for a period of three years beginning with the month in which the industrial undertaking is set up or commercial operations are commenced, whichever is later.

    Profit and gains derived by a taxpayer, from an industrial undertaking set up between the first day of July, 2015 and the 30th day of June, 2017 for establishing and operating a halal meat production unit, for a period of four years beginning with the month in which the industrial undertaking commences commercial production.

    The exemption under this clause shall apply if the industrial undertaking is –

    (a) owned and managed by a company formed for operating the said halal meat production unit and registered under the Companies Ordinance, 1984 (XLVII of 1984), and having its registered office in Pakistan;

    (b) not formed by the splitting up, or the re construction or reconstitution, of a business already in existence or by transfer to a new business of any machinery or plant used in a business which was being carried on in Pakistan at any time before the commencement of new business; and

    (c) halal meat production unit is established and obtains a halal certification within the period between the first day of July, 2015 and the 30th day of June, 2017.

    Profit and gains derived by a taxpayer, from industrial undertaking set up in Khyber Pukhtunkhwa and Baluchistan between 1st day of July, 2015and 30th day of June, 2018 for a period of five years beginning with the month in which industrial undertaking is set up or commercial production is commenced, whichever is later:

    Provided that exemption under this clause shall be admissible where—

    (a) the industrial undertaking is setup between the first day of July, 2015 and 30th day of June, 2018, both days inclusive; and

    (b) the industrial undertaking is not established by the splitting up or reconstruction or reconstitution of an undertaking already inexistence or by transfer of machinery or plant from an undertaking established in Pakistan at any time before 1st July 2015.

    Profit and gains derived by a taxpayer from an industrial undertaking, duly certified by the Pakistan Telecommunication Authority, engaged in the manufacturing of cellular mobile phones, for a period of five years, from the month of commencement of commercial production:

    Provided that the industrial undertaking has been setup and commercial production has commenced between the first day of July, 2015 and the thirtieth day of June, 2017 and the industrial undertaking is not formed by the splitting up, or the reconstruction or reconstitution, of a business already inexistence or by transfer to a new business of any machinery or plant used in a business which was being carried on in Pakistan.

    The benefit represented by free provision to the employee of medical treatment or hospitalization or both by an employer or the reimbursement received by the employee of the medical charges or hospital charges or both paid by him, where such provision or reimbursement is in accordance with the terms of employment:

    Provided that National Tax Number of the hospital or clinic, as the case may be, is given and the employer also certifies and attests the medical or hospital bills to which this clause applies;

    (b) any medical allowance received by an employee not exceeding ten per cent of the basic salary of the employee if free medical treatment or hospitalization or reimbursement of medical or hospitalization charges is not provided for in the terms of employment.

    The withdrawal of this exemption needs to be reconsidered.

    The following perquisites received by an employee by virtue of his employment, namely:-

    (i) free or subsidized food provided by hotels and restaurants to its employees during duty hours;

    (ii) free or subsidized education provided by an educational institution to the children of its employees;

    (iii) free or subsidized medical treatment provided by a hospital or a clinic to its employees; and

    (iv) any other perquisite or benefit for which the employer does not have to bear any marginal cost, as notified by the Board.

  • Tax officers empowered to arrest persons for concealing income

    Tax officers empowered to arrest persons for concealing income

    ISLAMABAD: The Federal Board of Revenue (FBR) has introduced a significant amendment to the Income Tax Ordinance, 2001, through the Finance Bill, 2021, empowering tax officers to arrest individuals in cases of income concealment.

    (more…)
  • Capital gain on immovable properties above Rs5 million to be taxed at normal rate

    Capital gain on immovable properties above Rs5 million to be taxed at normal rate

    KARACHI: The government has taken taxation measures on capital gains from disposal of immovable properties and introduced normal tax regime on gains on immovable properties above Rs5 million.

    According to commentary on budget 2021/2022 and Finance Bill, 2021 released by PwC A. F. Ferguson & Co. Chartered Accountants, under the existing provisions, gains on disposal of immovable properties are taxed at special (reduced) slab rates along with reduction in gain based on holding period.

    Gains on disposal of immovable properties held for more than four years are effectively non-taxable.

    The proposed amendment at the outset seeks to clarify that this regime for immovable properties is not applicable on persons habitually engaged in transaction of sale and purchase of properties or where sale is adventure in the nature of trade or business.

    Income of such persons would be taxable under the head of business with consequential effect that no benefit of holding period and special rate of tax would apply.

    Furthermore, it is proposed that gains up to Rs 5 million will be taxed at a special rate of 5percent as against the existing rate of 2.5 percent.

    The gains exceeding Rs 5 million will be taxed at normal rate though the benefit of holding period in computation would continue to apply as per existing provisions given below:

    1. Where the holding period of an immovable property does not exceed one year: the calculation for tax shall be

    A = Consideration minus cost

    2. Where the holding period of an immovable property exceeds one year but does not exceed two years: the calculation shall be A x 3/4

    3. Where the holding period of an immovable property exceeds two years but does not exceed three years: the calculation shall be A x 1/2

    4. Where the holding period of an immovable property exceeds three years but does not exceed four years: the calculation shall be A x 1/4

    5. Where the holding period of an immovable property exceeds four years: the calculation shall be Zero

    In case of disposal of a depreciable immovable property at a consideration higher than its cost, the provisions of law deem consideration as cost of such property, thus, resulting into recoupment of tax deprecation only.

    The rationale for such provision was that the Federal Government did not have powers under the Constitution of Pakistan to tax gain on disposal of an immovable property.

    However, the 18th amendment to the Constitution was construed by the Federal Government to have given them jurisdiction to tax such gains.

    Consequently, specific provisions were introduced for taxation of gains on immovable properties, but no such amendment was made for depreciable immovable assets.

    An amendment is now proposed to tax the aforesaid ‘excess’ as capital gains under section 37. As a result, in case of depreciable immovable assets, the excess should be dealt in the same manner as applicable for other immovable properties particularly with the concept of holding period.

    The placement and language of the proposed amendment contradicts section 22(8) thus resulting in anomalous situation, which should be reconsidered.

  • Uniform taxation for property income introduced

    Uniform taxation for property income introduced

    KARACHI: A major shift in taxation on property income has been introduced through Finance Bill, 2021 and all taxpayers shall be subject to uniform taxation on net-income basis at the applicable rates.

    According to commentary on budget 2021/2022 and Finance Bill, 2021, by PwC A. F. Ferguson & Co. Chartered Accountants, at present, Individuals and Association of Persons (AOPs) can opt for their property income to be chargeable to tax on gross rent without any deductions, at specified (lower) tax rates.

    Companies’ property income, however, is subject to tax after certain admissible deductions at applicable corporate rate.

    Through the proposed amendments, property income for all taxpayers shall henceforth be subject to uniform taxation on net-income basis at the applicable rates.

    Withholding tax rates applicable to the property income of Individuals and AOPs are also proposed to be revised as under:

    1.  Where the gross amount of rent does not exceed Rs300,000: No tax shall be levied

    2. Where the gross amount of rent exceeds Rs. 300,000 but does not exceed Rs. 600,000: the tax shall be 5 per cent of the gross amount exceeding Rs. 300,000

    3. Where the gross amount of rent exceeds Rs. 600,000 but does not exceed Rs. 2,000,000: the tax shall be Rs15,000 plus 10 per cent of the gross amount exceeding Rs. 600,000

    4. Where the gross amount of rent exceeds Rs. 2,000,000: the tax shall be Rs155,000 plus 25 per cent of the gross amount exceeding Rs. 2,000,000.

    Further, the adjustment of property income for a tax year against loss under any other head of income is proposed to be reinstated.

    The adjustment of such losses could give rise to a situation where effectively no tax is payable on property income.

    In order to give full effect to this amendment, the Government may, therefore, consider introducing enabling provision for issuance of exemption / reduced rate certificates in eligible cases.

  • Key amendments to tax laws introduced through Finance Bill 2021

    Key amendments to tax laws introduced through Finance Bill 2021

    KARACHI: Finance Minister Shaukat Tarin while presenting budget 2021/2022 has announced certain relief measures and major policy changes in the taxation regime through Finance Bill, 2021.

    In its commentary on budget 2021/2022, PwC A.F. Ferguson & Co. Chartered Accountants, the Finance Bill 2021 represents the first budget presented by the current Finance Minister and effectively third by the Current Government.

    As announced by the Minister in the pre-budget sessions, certain relief measures and major policy changes in the taxation regime have been made part of the Finance Bill.

    The significant amendments aim to revive the economy and to facilitate the businesses include following:-

    a) Introduction of Special / simplified tax regime for Small & Medium Enterprises engaged in manufacturing sector;

    b) Final tax regime for export of services;

    c) Reduction in general minimum tax rate from 1.5% to 1.25% with an enabling provision to carry forward the minimum tax for loss making entities;

    d) Telecommunication companies included in the definition of industrial undertaking;

    e) Reduction in capital gains tax rate for securities traded on stock exchanges;

    f) Abolishment of 12 withholding tax provisions including on cash withdrawals and other banking transactions;

    g) Saving the benefits accrued under expired / repealed exemption provisions;

    h) Facilitative provisions relating to exemption certificates for corporate sector and tax credit entities;

    i) Adjustment of losses allowed against income from property;

    j) Curative amendment for minimum tax exemption on Special Economic Zone entities;

    k) Rationalisation of amendment proceedings and introducing time limit for finalization of income tax proceedings;

    l) Abolishment of sales tax on advances;

    m) Increase in threshold for sales tax exemption of Cottage industries;

    n) Exemptions and concessions introduced for Special Technology Zones;

    o) Introduction of a new concept of Border Sustenance Market and its related concessions and exemptions;

    p) Zero rating on export of services from Islamabad Capital Territory; and

    q) Exclusion of listed companies from the restriction on claim of input tax beyond 90% of output tax.

    As earlier indicated by the Finance Minister, specific provisions in income tax have been introduced empowering the relevant Officers to arrest persons involved in concealment of income. In the environment of Pakistan, such powers need to be exercised very carefully so as not to result in undue harassment to the taxpayers. It is therefore suggested that these provisions may need to be re-evaluated for providing some preliminary mechanism of adjudication or approvals to ensure that the principles of natural justice and fair trial are adhered to.

    The difference in tax rates between corporate and non-corporate taxpayers is not allowing proper corporatization mainly due to higher incidence of tax on dividend income particularly in case of inter-corporate dividends other than 100% wholly owned groups. In line with international best practices, there is a need to reconsider the overall tax regime for dividend income especially for inter-corporate dividends which is essential to convert non-corporate businesses into documented corporate sector entities.

    Furthermore, tax credit relating to new industrial undertakings particularly for equity-based projects may also need to be reinstated especially for those sectors where the manufacturing involves local raw material and transfer of technical knowhow from abroad.

    Through Finance Act, 2019, a positive step was taken to convert various final tax withholdings into minimum tax and it was expected that eventually the same would lead to complete income based taxation regime. However, so far, no such steps have been taken and instead a higher tax incidence is being retained for certain services sector which need to be rationalized. Needless to say, such minimum tax regime is only hitting the sectors which are dealing with documented customers whereas other players of same sector dealing with non-withholding agents are being taxed at a lower rate. Furthermore, there is no specific provision allowing the carry forward of minimum tax paid in this manner. All these issues require a serious consideration.

    Keeping in view the level of documentation in Pakistan economy, there is a need to effectively utilize the online marketplace and similar platforms for gathering information for undocumented business sector instead of imposing tax on such platforms under the garb of sales tax provisions. It is suggested to have a transitional road map for this purpose.

    Certain measures have been taken which result in further enhancement of tax incidence on salaried taxpayers, such as withdrawal of exemption on medical allowances and reimbursements as well as taxation of interest beyond certain threshold earned from retirement benefit schemes. Both these actions need reconsideration.

    Reduced rate of withholding tax on certain services has been introduced only for resident taxpayers thus creating a discriminatory treatment for non-residents engaged in similar services. It is expected that the Finance Act, 2021 will take corrective measures to remove this anomaly.

    The proposal relating to the manner of taxing gains on disposal of immovable business property is likely to create an anomalous situation which requires redressal.

    To maintain the confidence of business and investors, it is expected that the relief measures will not be disturbed through frequent amendments by way of supplementary finance bills during the next fiscal year. Continuity of tax policy is key to the sustainable economic growth.

  • FBR, SBP to make procedure for tax payment on export of services

    FBR, SBP to make procedure for tax payment on export of services

    ISLAMABAD: The government has imposed income tax on export of services and in this regard Federal Board of Revenue (FBR) and State Bank of Pakistan (SBP) will make procedure for payment of tax.

    According to budget 2021/2022 documents, the Finance Bill 2021 proposed a new section 154A for imposition of income tax on export of services.

    The proposed new section is as follow:

    “154A. Export of Services.– (1) Every authorized dealer in foreign exchange shall, at the time of realization of foreign exchange proceeds on account of the following, deduct tax from the proceeds at the rates specified in Division IVA of Part III of the First Schedule –

    (a) exports of computer software or IT services or IT enabled services in case tax credit under section 65F is not available;

    (b) services or technical services rendered outside Pakistan or exported from Pakistan;

    (c) royalty, commission or fees derived by a resident company from a foreign enterprise in consideration for the use outside Pakistan of any patent, invention, model, design, secret process or formula or similar property right, or information concerning industrial, commercial or scientific knowledge, experience or skill made available or provided to such enterprise;

    (d) construction contracts executed outside Pakistan; and

    (e) other services rendered outside Pakistan as notified by the Board from time to time;

    (2) The tax deductible under this section shall be a final tax on the income arising from the transactions referred to in this section, upon fulfilment of the following conditions –

    (a) return has been filed;

    (b) withholding tax statements for the relevant tax year have been filed; and

    (c) sales tax returns under Federal or Provincial laws have been filed, if required under the law;

    (d) no credit for foreign taxes paid shall be allowed.

    (3) The provisions of sub-section (2) shall not apply to a person who does not fulfill the specified conditions or who opts not to be subject to final taxation:

    Provided that the option shall be exercised every year at the time of filing of return under section 114.

    (4) Where a taxpayer, while explaining the nature and source of any amount, investment, money, valuable article, expenditure, referred to in section 111, takes into account any source of income which is subject to final tax in accordance with the provisions of this section, he shall not be entitled to take credit of a sum that can be reasonably attributed to the business activity or activities mentioned in sub-section (1).

    (5) The Board in consultation with State Bank of Pakistan shall prescribe mode, manner and procedure of payment of tax under this section.

    (6) The Board shall have power to include or exclude certain services for applicability of provisions of this section.”

  • Commissioners IR to issue amended assessment order in 120 days

    Commissioners IR to issue amended assessment order in 120 days

    ISLAMABAD: Commissioners Inland Revenue have been bound to issue order in amended assessment within 120 days under Section 122 of Income Tax Ordinance, 2001.

    According to budget 2021/2022 documents, the Finance Bill 2021 proposed amendment Section 122 of the Income Tax Ordinance, 2001.

    The amendment proposed through Finance Bill 2021 in sub-section (9), for the full stop at the end, a colon shall be substituted and thereafter the following new provisos shall be added, namely:–

    “Provided that order under this section shall be made within one hundred and twenty days of issuance of show cause notice or within such extended period as the Commissioner may, for reasons to be recorded in writing, so however, such extended period shall in no case exceed ninety days. This proviso shall be applicable to a show cause notice issued on or after the first day of July, 2021.

    Provided further that any period during which the proceedings are adjourned on account of a stay order or Alternative Dispute Resolution proceedings or agreed assessment proceedings under section 122D or the time taken through adjournment by the taxpayer not exceeding sixty days shall be excluded from the computation of the period specified in the first proviso.”

  • FBR allowed probe foreign income beyond past five years

    FBR allowed probe foreign income beyond past five years

    ISLAMABAD: The Federal Board of Revenue (FBR) has been authorized to probe foreign income of a taxpayers beyond past five years as time limitation in this regard has been withdrawn through Finance Bill 2021.

    According to budget 2021/2022 documents, the Finance Bill 2021 proposed amendment to Section 114 of the Income Tax Ordinance, 2001.

    It is proposed amendment in sub-section (5) of Section 114, to insert new proviso, namely:–

    “Provided further that the time-limitation provided under this sub-section shall not apply if the Commissioner is satisfied on the basis of reasons to be recorded in writing that a person who failed to furnish his return has foreign income or owns foreign assets.”

  • Turnover increased to Rs100 million for minimum tax levy

    Turnover increased to Rs100 million for minimum tax levy

    ISLAMABAD: The government has increased threshold of annual turnover to Rs100 million from Rs10 million for imposing minimum income tax from July 01, 2021 onwards.

    According to Budget 2021/2022 documents, Finance Bill 2021 has proposed amendment to Section 113 of Income Tax Ordinance, 2001.

    The Section 113 after the proposed amendment is:

    Minimum tax on the income of certain persons.- (1) This section shall apply to a resident company, permanent establishment of a non-resident company, an individual (having turnover of one hundred million rupees or above in the tax year 2017 or in any subsequent tax year) and an association of persons (having turnover of one hundred million rupees or above in the tax year 2017 or in any subsequent tax year) where, for any reason whatsoever allowed under this Ordinance, including any other law for the time being in force—

    (a) loss for the year;

    (b) the setting off of a loss of an earlier year;

    (c) exemption from tax;

    (d) the application of credits or rebates; or

    (e) the claiming of allowances or deductions (including depreciation and amortization deductions) no tax is payable or paid by the person for a tax year or the tax payable or paid by the person for a tax year is less than the percentage as specified in column (3) of the Table in Division IX of Part-I of the First Schedule of the amount representing the person’s turnover from all sources for that year:

    The Finance Bill 2021 also added an explanation:.- For the removal of doubt, it is clarified that the definition of turnover covers receipts from all business activities in line with expression “ turnover from all sources” used in sub-section (1) including but not limited to receipts from sale of immoveable property where such receipt is taxable under the head Income from Business.”

    More provisos has been proposed through Finance Bill 2021:

    “Provided that if tax is paid under sub-section (1) due to the fact that no tax is payable or paid for the year, the entire amount of tax paid under sub-section (1) shall be carried forward for adjustment in the manner stated aforesaid:

    Provided further that the amount under this clause shall be carried forward and adjusted against tax liability for five tax years immediately succeeding the tax year for which the amount was paid.”;