UK Law Associates

26/07/2026

⚖️ CASE LAW UPDATE | 2026 PTD 185

Routine Inspection ≠ Search & Seizure

The Lahore High Court has clarified an important principle under the Sales Tax Act, 1990:

✅ Section 38 empowers FBR to conduct routine inspections of business premises without obtaining a Magistrate's warrant.

✅ Section 40 applies only to search & seizure, where a Magistrate's warrant is mandatory.

📌 Key Takeaways:
• Section 38 and Section 40 operate independently.
• Routine inspection does not require a warrant.
• Search & seizure requires a Magistrate's warrant.
• Constitutional Petition dismissed.

Understanding this distinction is essential for taxpayers, tax practitioners, and corporate businesses dealing with FBR inspections.

Hasnain A Rind Baloch & Co.
Taxation | Corporate | SECP | Litigation

📧 [email protected]
📍 Suit No. A-01, 1st Floor, Plot No. 45-C, Tauheed Commercial Area, Phase V, DHA Karachi

27/06/2026

📌Tax Year 2026 Closing Alert

UK Law Associates announces the approaching close of the fiscal year 2026. All taxpayers are advised to ensure compliance procedures are finalized in accordance with statutory requirements.

Our professional team is available to assist with:
• Advance Tax Payments Recording
• Asset & Investment Verification
• Withholding Tax Documentation
• Bank Reconciliation Finalization
• PRCs for Foreign Remittances

Timely completion of these obligations is essential to avoid penalties and ensure seamless compliance.

For consultation and support:
📞 +92 339 2627942
✉️ [email protected]

26/06/2026

On this solemn occasion of the 10th of Muharram, we join the nation in commemorating the supreme sacrifice and martyrdom of Imam Hussain (A.S.). May the timeless principles of truth, justice, and integrity guide our path forward.

23/06/2026

🌟 Supreme Court of Pakistan | 2024 PTD 865 🌟
Chief Commissioner/Commissioner IR Zone‑II/III, RTO Peshawar
vs M/s. Akbar Khan Filling Station & Others

⚖️ Key Legal Crux:
The Supreme Court reaffirmed that Section 156A of the Income Tax Ordinance 2001 applies to commission income earned by petrol pump operators in FATA when the contractual arrangements, payments, and tax deductions occur in taxable areas.

📚 Technical Highlights:
Final Tax Regime: Tax deducted under Section 156A on commission/discount is final; refund claims under Section 170 are not maintainable.

Situs of Accrual: Income accrued through contracts and payments executed outside FATA is taxable under the Ordinance.

Onus on Taxpayer: Business location in FATA does not confer immunity; taxpayers must prove income was derived exclusively from non‑extended territories under Article 247(3) of the Constitution.

Appellate Misinterpretation: Lower forums erred by focusing on pump location rather than contractual nexus and accrual situs.

💡 Professional Insight:
This judgment underscores that territorial non‑extension of tax laws does not shield income where contractual nexus lies in taxable jurisdictions. Refund claims based solely on FATA immunity are untenable unless both accrual and enforcement situs fall outside the Ordinance’s scope.

📞 Contact us on
Cell: +92 339 2627942
Email: [email protected]

16/06/2026

Finance Bill 2026 proposes the withdrawal of the reduced minimum tax regime available to distributors of pharmaceutical products, FMCG products, and ci******es.

The proposed omission of Entry 3(a) of Division IX, Part I of the First Schedule would remove the concessional minimum tax treatment currently available under Section 113.

As a result, affected distributors would move from the reduced turnover tax rate of 0.25% to the general minimum tax rate of 1.25%.

This represents a substantial increase in the minimum tax burden and signals a policy shift towards narrowing sector-specific concessions within the minimum tax framework.

Businesses operating within these distribution networks should evaluate the financial and compliance implications of the proposed change.

15/06/2026

The Finance Bill 2026 introduces a new rule under Section 76(8A) of the Income Tax Ordinance: the cost of inherited immovable property will now be determined at its Fair Market Value (FMV) on the date of the original owner's death, rather than the historical purchase price.

What does this mean for heirs?

When you eventually sell inherited property, your capital gain will be calculated from the higher FMV cost base — not the old, lower price your parent or grandparent paid decades ago. In most cases, this means significantly lower capital gains tax for beneficiaries.

However, there are concerns to watch:

⚠️ The proposal may conflict with Section 79 of the Ordinance, which currently preserves the deceased owner's original cost basis for inherited assets.

⚠️ Wealth statement reconciliations could become complicated if the inherited value on record differs from the deceased's declared amount.

The government may need to amend related provisions to ensure consistency across the tax framework.

13/06/2026

Pay your Advance Income Tax today and take pride in serving the nation

The last date for paying the 4th quarterly instalment of Advance Income Tax is 15 June 2026

12/06/2026

تنخواہ دار طبقے کے لیے خوش آئند ریلیف، مختلف آمدنی کے طبقات میں ٹیکس کی شرحوں میں %3 فیصد سے %6 فیصد تک کمی اور سالانہ سرچارج کا مکمل خاتمہ ایک مثبت اقدام ہے۔
41 سے 56 لاکھ روپے سالانہ آمدنی والے افراد کو سب سے زیادہ فائدہ حاصل ہوگا، جہاں ٹیکس کی شرح %35 فیصد سے کم ہو کر %29 فیصد کر دی گئی ہے، یعنی 6 فیصد کی نمایاں کمی۔
32 سے 41 لاکھ روپے سالانہ آمدنی والوں کے لیے ٹیکس کی شرح %30 فیصد سے %25 فیصد کر دی گئی ہے، جو 5 فیصد کا قابلِ ذکر ریلیف ہے۔
گزشتہ سال 10 فیصد سے کم کر کے 9 فیصد کیے گئے سالانہ سرچارج کا مکمل خاتمہ تنخواہ دار طبقے کے لیے ایک اور خوش آئند پیش رفت ہے۔
مجموعی طور پر یہ تجاویز باقاعدگی سے ٹیکس ادا کرنے والے تنخواہ دار طبقے پر بڑھتے ہوئے بوجھ کو کم کرنے کی جانب ایک مثبت قدم ہیں۔
حکومت کی جانب سے %3 فیصد سے %6 فیصد تک ٹیکس میں کمی اور سالانہ سرچارج کے خاتمے کا فیصلہ تنخواہ دار طبقے کے لیے بلاشبہ ایک اہم ریلیف ثابت ہو سکتا ہے۔

30/09/2025

📢 Good News for Taxpayers!

FBR has extended the deadline for filing Income Tax Returns till 15th October 2025. Taxpayers who have not filed their returns yet are advised to file at the earliest.

⏳ Don’t wait until the last day—avoid penalties and stay compliant.

📌 Extended Deadline: 15th October 2025
📞 Contact: 0339 2627942
🌐 www.uklawassociates.com.pk

19/09/2025