Latest news with #FinanceAct
Business Recorder
3 hours ago
- Business
- Business Recorder
Unregistered taxpayers: 4pc ‘further sales tax' to be abolished
ISLAMABAD: The government is all set to take a bold documentation measure to abolish four percent 'further sales tax' on un-registered sales taxpayers and sustain huge revenue loss by registering the entire supply chain of businesses in budget (2025-26). Sources told Business Recorder here on Tuesday that the abolition of the four percent 'further sales tax' will result in revenue loss to the Federal Board of Revenue (FBR), but it will be instrumental in registration of the entire supply chain covering dealers, wholesalers and retailers. From manufacturing stage till retail outlets, the entire supply chain would come under the documented regime. The same is the situation with the importers where subsequent supply chain of imported goods are not registered with the sales tax department. Budget 2025-26: KCCI urges govt to expand tax net, targets 4.6mn unregistered entities The un-registered sales tax persons are enjoying the same status of 'non-filers of income tax returns' and carrying out all business transactions by paying higher rates of withholding taxes or further tax on sales tax side. The revenue loss after abolition of the 'further sales tax' would be temporary and revenue gains are much higher in long term period. Through Finance Bill (2025-26), the FBR has proposed amendments in the Sales Tax Act for the documentation of the entire supply chain with the sales tax department. In 2023, the FBR had increased the rate of 'further sales tax' from three to four percent in the amended Finance Bill 2023. Presently, the rate of further tax is four percent on the supplies made to the un-registered persons. The rate of 'further sales tax' was increased by one percent to discourage supplies made to the unregistered persons. If a person intended to remain out of the sales tax net, he is required to pay higher rate of further tax at the rate of four percent. Under the law, the 'further tax' is charged on supplies of taxable goods made by a registered person to a person who has not obtained a sales tax registration number or has obtained a registration number but is not an active taxpayer. The said rate of sales tax under sub-section (1A) of Section 3 of the Sales Tax Act was enhanced to four percent through the Finance Act, 2023. Officials added that the sales tax base totalled between 40,000 to 60,000 who are paying sales tax including those depositing very low amount of sales tax. Copyright Business Recorder, 2025
Scottish Sun
4 days ago
- Business
- Scottish Sun
Virtually unknown stamp duty loophole that means you pay TWICE – and who can avoid it
Scroll down to find out how to pay stamp duty HOUSE THAT Virtually unknown stamp duty loophole that means you pay TWICE – and who can avoid it Click to share on X/Twitter (Opens in new window) Click to share on Facebook (Opens in new window) A VIRTUALLY unknown stamp duty loophole could leave you paying the tax twice. Cohabiting homeowners who buy their partner out following a separation may find themselves hit with the land tax more than once. Sign up for Scottish Sun newsletter Sign up 1 You could end up paying stamp duty more than once if you're buying out a partner Credit: PA Stamp duty is, typically, a one-off payment you make if you buy a property or piece of land over a certain price in England and Northern Ireland. But if you bought a property with a partner and you're unmarried, you might have to pay stamp duty again if you break up and want to buy their share of the property. You'll only avoid paying it if the transfer is part of a formal divorce or separation agreement. The extra stamp duty you might have to pay depends on how much is left on your mortgage and the equity in your property (the part of your home you've already paid off). You'll only have to pay stamp duty again if the "chargeable consideration" is more than £125,000. The "chargeable consideration" is the total value of what you're taking on to own the property, such as the remaining mortgage and any equity. For example, if you pay your ex-partner £100,000 for their share of the equity and take on £200,000 of their mortgage, the total "chargeable consideration" would be £300,000. In this case, you would need to pay stamp duty on £175,000, which is the amount above the £125,000 threshold for residential properties. The rules about paying stamp duty after separating from a partner can be tricky, so it's a good idea to speak to a solicitor or tax advisor to work out exactly how much you owe. Keep in mind that you will likely need to pay for their services. The Sun's James Flanders explains how to find the best deal on your mortgage Simon Nosworth, partner at Osbornes Law, said: "If you're married you can be sheltered from having to pay stamp duty upon divorce when you're splitting up assets like a mortgage. "This is because you've got protection under the Finance Act. "However, if you're unmarried you don't have this protection. "Broadly it is unfair, but there is no way around it." What is stamp duty? STAMP duty land tax (SDLT) is a lump sum payment anyone buying a property or piece of land over a certain price has to pay. You pay the tax when you: Buy a freehold property Buy a new or existing leasehold Buy a property through a shared ownership scheme Land is transferred to you or property in exchange for payment, for example, you take on a mortgage or buy a share in a house The rate you pay depends on the price and type of property and certain thresholds. If you are a first-time buyer no stamp duty is due if the property is worth £300,000 or less. You'll also get a discount if the purchase price is £500,000 or less and will only pay 5% SDLT on the portion from £300,001 to £500,000. Those who aren't first-time buyers will pay different rates depending on the value of their new home: If it's up to £125,000 - no stamp duty is paid For the next £125,000 (the portion from £125,001 to £250,000) - stamp duty is charged at 2% For the next £675,000 (the portion from £250,001 to £925,000) - stamp duty is charged at 5% For the next £575,000 (the portion from £925,001 to £1.5 million_ - stamp duty is charged at 10% For the remaining amount (the portion above £1.5million) - stamp duty is charged at 12% You'll usually have to pay 5% on top of SDLT rates if buying a new residential property means you'll own more than one. An HMRC spokesperson said: "Stamp duty in these cases may only be payable on the share purchased, not on the total value of the property." How to pay the stamp duty You have to pay stamp duty within 14 days of any transaction date. If the deadline is on a weekend or bank holiday, you need to make sure your payment reaches HMRC by the end of the previous working day. You will need your 11-character unique transaction reference number to hand. This reference will always be made up of nine numbers and two characters (for example, 123456789MC). You can find this on your paper return or on your electronic SDLT5 certificate. You can pay online by clicking on the "pay now" button found via You can also pay by cheque, but must allow three working days for your payment to reach HMRC. Make your cheque payable to "HM Revenue and Customs only" and write your reference number on the back. If you've filed a paper return, you need to complete the payslip and send this with your cheque to: BT Stamp Duty Land Tax HM Revenue and Customs BX9 1LT Send your cheque (including a payslip or quoting the unique transaction reference) to: HM Revenue and Customs Direct BX5 5BD Do you have a money problem that needs sorting? Get in touch by emailing money-sm@ Plus, you can join our Sun Money Chats and Tips Facebook group to share your tips and stories
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Business Standard
27-05-2025
- Business
- Business Standard
CBDT extends ITR filing deadline to September 15 amid major changes
In a relief to taxpayers, the Central Board of Direct Taxes (CBDT) has extended the last date for filing the income-tax return (ITR) for assessment year (AY) 2025-26 from July 31 to September 15. The decision follows revisions to the structure and content of the notified ITR forms, which have provisions and several new reporting requirements introduced by the Finance Act, 2024. 'In view of the extensive changes introduced in the notified ITRs and considering the time required for system readiness and rollout of Income Tax Return (ITR) utilities for Assessment Year (AY) 2025-26, the Central Board of Direct Taxes (CBDT) has decided to extend the due date for filing returns,' the CBDT said. In a statement to the media on Monday, the CBDT acknowledged that credits from statements on tax deducted at source (TDS), due for filing by May 31, would begin reflecting in early June, limiting the window for return filing without an extension. ITR-1 now includes an option to report long-term capital gains up to ~1.25 lakh. ITRs 2, 3, 5, and 6 require more detailed disclosures under the 'Capital Gains Schedule' with reporting required for transactions before and after July 23, 2024, owing to different tax implications following the changes made last year in the tax law. 'This extension is expected to mitigate the concerns raised by stakeholders and provide adequate time for compliance, thereby ensuring the integrity and accuracy of the return filing process,' the CBDT said. Tax experts welcomed the move, calling it a step to ease taxpayer compliance amid evolving requirements. 'The ITR forms notified for FY2024-25 incorporate enhanced reporting, such as splitting capital gains before and after July 23, 2024, following rationalisation measures in the Finance Act,' said Sonu Iyer, partner and national leader, People Advisory Services (Tax), EY India. 'This provides taxpayers adequate time to comply,' Iyer added. Vivek Jalan, partner, Tax Connect Advisory Services LLP, said: 'Every year, TDS/TCS (tax collected at source) credits are reflected only by mid-June, leaving taxpayers just about six weeks for compliance. Extending the deadline to September 15 alleviates this hardship.' Jalan urged the government to consider a permanent extension of the due date to August 31 under the proposed Income Tax Bill 2025, which is expected to come into effect from April 1, 2026. While the extension offers much-needed relief to salaried individuals and small businesses not subject to audit, experts said the press release was silent on whether the due date for tax payment had also been extended and whether interest under Section 234A would apply. 'In the absence of clarification, there is a possibility that interest under Section 234A may apply if there is a tax liability and the return is filed after July 31 without full payment. To avoid this, taxpayers should pay any self-assessment tax by July 31,' said Gaurav Makhijani, associate partner, Rödl & Partner. Timely payment will avoid interest under Section 234B for shortfalls in advance tax, he said.
Business Recorder
26-05-2025
- Business
- Business Recorder
FBR to levy 18% sales tax in erstwhile tribal areas
ISLAMABAD: The government has decided to impose 18 percent sales tax on goods manufactured in erstwhile tribal areas in the federal budget (2025-26). Sources told Business Recorder that the withdrawal of sales tax exemption would generate over Rs45 billion during 2025-26. The revenue impact will be higher in case income tax concessions are also withdrawn for the said areas. The Federal Board of Revenue (FBR) is drafting the necessary legal changes in light of court orders and relevant provisions of law. Ex-FATA/PATA: Rs45bn GST exemptions under scrutiny Through Finance Act, 2024 exemption available to ex-FATA/PATA (import/ supply of goods and supply of electricity) was retained till June 30, 2025. However, the exemption on import shall be available subject to presentation of pay order instead of post-dated cheque which would be released on furnishing (within six months) of the consumption/installation certificates issued by the concerned Commissioner. Copyright Business Recorder, 2025
Business Recorder
26-05-2025
- Business
- Business Recorder
FBR to levy 18pc ST in erstwhile tribal areas
ISLAMABAD: The government has decided to impose 18 percent sales tax on goods manufactured in erstwhile tribal areas in the federal budget (2025-26). Sources told Business Recorder that the withdrawal of sales tax exemption would generate over Rs45 billion during 2025-26. The revenue impact will be higher in case income tax concessions are also withdrawn for the said areas. The Federal Board of Revenue (FBR) is drafting the necessary legal changes in light of court orders and relevant provisions of law. Ex-FATA/PATA: Rs45bn GST exemptions under scrutiny Through Finance Act, 2024 exemption available to ex-FATA/PATA (import/ supply of goods and supply of electricity) was retained till June 30, 2025. However, the exemption on import shall be available subject to presentation of pay order instead of post-dated cheque which would be released on furnishing (within six months) of the consumption/installation certificates issued by the concerned Commissioner. Copyright Business Recorder, 2025
