Baa Advisory

07/05/2026

Good news for property owners: Section 7E declared null and void.

The Federal Constitutional Court has declared Section 7E of the Income Tax Ordinance as unconstitutional (Ultra Vires).

This decision is being considered a very important development for the real estate sector and property owners of Pakistan.

What was Section 7E?
According to Section 7E, introduced under the Finance Act 2022, if a person has more than one property, the government used to assume that this property was generating income equal to 5 percent of its market value, even if there was no rent or income in reality. Federal income tax was levied on this fictitious income.

What was the constitutional conflict?

According to legal experts, under the Constitution of Pakistan, the federation can only tax “income”, while the provinces have the authority to tax immovable property. Therefore, it was argued that Section 7E was actually a property tax, which was called income tax.

Court Decision
The Federal Constitutional Court ruled in its decision that Section 7E was an excess of the federal government's constitutional powers, therefore the law is unconstitutional.

This decision is being considered a major legal and financial relief for property owners and has also clarified the constitutional limits of the taxing powers of the federation and the provinces.

31/03/2026

FBR notification regarding Digital Sales tax invoicing and Integration of Sales Tax Registered Persons

21/02/2026

28/01/2026

⚖️ Landmark Ruling: Federal Constitutional Court Upholds Super Tax

Big news for the national exchequer! The Federal Constitutional Court has issued its short order on Sections 4B and 4C of the Income Tax Ordinance 2001, effectively green-lighting the Super Tax. This move is expected to inject approximately PKR 300 billion into the public treasury.

Here are the key takeaways from the verdict:

• 10% Rate Confirmed: For Tax Year 2022, a 10% Super Tax applies to 15 specific sectors (under Section 4C) provided their income exceeded Rs. 300 million.
• Banking Sector: The Court ruled that Section 4C is applicable to banking companies starting from Tax Year 2023 and onwards.
• Oil & Petroleum Protection: For companies under Petroleum and Concession Agreements (Fifth Schedule), the Court has directed a case-by-case review. Commissioners must ensure that any new notices respect the specific "agreed caps" within individual agreements.

This judgement marks a significant moment for fiscal policy, balancing the need for public revenue with the legal protections of existing business concessions.

Federal Board of Revenue

11/12/2025

اگر کوئی شخص 50 لاکھ روپے سے زائد قیمت کی غیر منقولہ جائیداد (زمین/گھر/پلاٹ) بینک کے ذریعے ادائیگی کیے بغیر خریدتا ہے تو اس پر:

خریدی گئی جائیداد کی مالیت کا 5% بطور Penalty (جرمانہ) لاگو ہوگا۔

یہ جرمانہ Income Tax Ordinance 2001 کے سیکشن 75A کے تحت وصول کیا جائے گا۔

Income Tax Ordinance, 2001 — Section 75A (Mode and Manner of Payment)

اگر جائیداد کی Fair Market Value پانچ ملین (50 لاکھ) سے زیادہ ہو

اور ادائیگی Non-Banking Transaction ہو

تو 5٪ Penalty لگے گی۔

1. سب رجسٹرار، لینڈ ریکارڈ افسران اور ٹرانسفرنگ افسران کو حکم دیا گیا ہے کہ:
ہر Non-Banking Transaction پر لازمی 5% جرمانہ وصول کیا جائے۔

2. اگر کوئی افسر یہ جرمانہ وصول نہیں کرتا تو:
اس افسر کے خلاف کارروائی ہوگی اور وہ خود ذمہ دار ہوگا۔

3. یہ بات Pre-PAC Meeting (02-12-2024) میں ظاہر ہوئی کہ کئی افسران جرمانہ نہیں لے رہے تھے، جس پر سخت ناراضگی ظاہر کی گئی۔

سادہ زبان میں مثال

اگر آپ نے 80 لاکھ کا گھر خریدا اور پیسے بینک کے ذریعے نہیں دیے بلکہ کیش میں ادا کر دیے:

تو آپ کو 80,00,000 × 5% = 4,00,000 روپے جرمانہ دینا پڑے گا۔

اہم نوٹ

یہ جرمانہ صرف خریدار پر لاگو ہوتا ہے۔

اس کا مقصد پیسہ سفید/بلیک کی روک تھام ہے۔

رجسٹری دفتر بغیر Penalty ٹرانسفر نہیں کرے گا۔

04/11/2025

📢 FBR Clarification on Active Taxpayers List (ATL) 2025 and Extension Filers

FBR has issued an important clarification regarding taxpayer status and extensions:

• No Removal from ATL: Taxpayers who filed an extension application within the prescribed time limit have not been removed from the Active Taxpayers List.

• Automatic Extension: Those who duly filed an extension application have been automatically granted a 15-day extension.

• ATL 2025 Determination: Your status on the Active Taxpayers List for 2025 will be determined by your Tax Year 2024 Return Filings. New filers up to November 15, 2025, will also be included.

Action Required: If you filed for an extension, ensure your Tax Year 2024 return is submitted immediately to maintain your ATL status.

28/10/2025

Petition against Late uploading of Tax return form in Islamabad High Court

15/10/2025

Extension in Annual Income tax return filing 2025 further to 31 October 2025