In a bid to maintain the inflow of investments in the construction industry, the government has decided to extend the amnesty scheme through Income Tax (Amendment) Ordinance, 2021.
The immunity for first purchaser of a building or unit of a building from a new project or existing project subject to full or remaining payment has been extended from 30.9.2020 to 31.3.2023 under the Income Tax (Amendment) Ordinance, 2021. Important changes have been made in section 100D and 11th Schedule relating to builders and developers:
(a) For a new project completion, the deadline has been extended from 30.9.2022 to 30.9.2023.
(b) For an incomplete existing project, the completion date has been extended from 30.9.2022 to 30.9.2023.
c) Tax Year 2020 income, profits and gains of a builder or developer of an incomplete existing project earned, the Amnesty will not be applicable.
Builder or developer being an individual, AOP & Company, for investment in new project, the deadline for depositing into new bank account, in order to avail immunity, has been extended from 31.12.2020 to 30.6.2020.
Due to the introduction of amnesty scheme the construction industry has seen a huge influx of investment. All the allied industries have also benefited due to this scheme.