LAHORE, Apr 06 (APP): The Lahore High Court (LHC) on Thursday struck down imposition of income tax on immovable property under Section 7(E) of Income Tax Ordinance 2001.<\/p>\n
The court held that it was beyond the competence of federal legislator to treat the market value of immovable property as income under Entry 47, therefore, it was declared ultra vires.<\/p>\n
The court also declared exemptions given to persons under clauses (i), (iii) and (iv) of Section 7E (2)(d), as ultra vires after terming them discriminatory, offending the Article 25.<\/p>\n
Justice Shahid Jamil Khan passed the orders while partially allowing more than 1000 petitions filed by Muhammad Usman Gull and others questioning the constitutionality of Section 7E \u2013 tax on deemed income of the Income Tax Ordinance, 2001, inserted through the Finance Act, 2022.<\/p>\n
The petitioner’s had stated that parliament was not competent to make laws about tax on immovable as after the 18th Constitutional Amendment, 2010, only the provincial legislature was eligible and competent to tax immovable property.<\/p>\n","protected":false},"excerpt":{"rendered":"
LAHORE, Apr 06 (APP): The Lahore High Court (LHC) on Thursday struck down imposition of income tax on immovable property under Section 7(E) of Income Tax Ordinance 2001. The court held that it was beyond the competence of federal legislator to treat the market value […]<\/p>\n
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