Section 7D: Tax on developers

1[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 VIIIB 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. 2[(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 13S 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 13ZB of the Income Tax Rules, 2002.”;

Effective date: 2001-09-13

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