Corporate sector given extension in deadline for converting to digital payments

Companies will be bound to make digital payments from business bank accounts on transactions exceeding Rs250,000

ISLAMABAD: The Federal Board of Revenue (FBR) has given the corporate sector an extension in the deadline for converting to digital payments by another month.

A notification issued by the tax department in this regard on Wednesday states that the FBR is extending the deadline for digital payments up to December 31, 2021.

It is pertinent to note that the FBR had earlier extended the deadline up to November 30.

It is pertinent to mention here that the government had made an amendment vide Tax Laws (3rd Amendment) Ordinance, 2021, making all companies, as defined under Section 80)(2)(b) of the Ordinance, liable to use digital mode for payment to their vendors from business bank accounts on transactions exceeding Rs250,000, failing which non-digital transactions will not be accepted as a valid expense.

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