ITO Section 7C

Tax on builders.

(1) Subject to this Ordinance, a tax shall be imposed on the profits and gains of a person deriving income from the business of construction and sale of residential, commercial or other buildings at the rates specified in Division VIII A of Part I of the First Schedule.'

(2) The tax imposed under sub-section (1) shall be computed by applying the relevant rate of tax to the area of the residential, commercial or other building being constructed for sale.

(3) The Board may prescribe:

• (a) the mode and manner for payment and collection of tax under this section;
• (b) the authorities granting approval for computation and payment plan of tax; and
• (c) responsibilities and powers of the authorities approving, suspending and cancelling no objection certificate to sell and the matters connected and ancillary thereto.

[(4) This section shall apply to projects undertaken for construction and sale of residential and commercial buildings initiated and approved

• (a) during tax year 2017 only;
• (b) for which payment under rule 13 S of the Income Tax Rules, 2002 has been made by the developer during tax year 2017; and
• (c) the Chief Commissioner has issued online schedule of advance tax installments to be paid by the developer in accordance with rule 13 U of the Income Tax Rules, 2002.]