ITO Section 7D

Tax on developers.

(1) Subject to this Ordinance, a tax shall be imposed on the profits and gains of a person deriving income from the business of development and sale of residential, commercial or other plots at the rates specified in Division VIII B 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 plots 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 development and sale of residential and commercial plots 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 ZB of the Income Tax Rules, 2002.”;