What Is The Income Tax Ordinance 2001 And What Are The Rules And Regulations Of This Law?

Another commission constituted by the government submitted its report in May 2001. The commission suggested that income tax ordinance 1979 should be replaced by income tax ordinance 2001, which is claimed to be simple and less complicated. This new income tax was promulgated on 13th September 2001 and it has become effective form 1st July 2002. Before promulgation, necessary changes have been made through finance ordinance 2002. The assessments of tax year 2003 are being finalized under income tax ordinance 2001 so this book is completely based on this ordinance. The central board of revenue has claimed that the new ordinance is a justifiable pragmatic easy to understand and in accordance with the global environment.

The government claims that by introduction of this ordinance, truly revolutionary changes have been brought in the income tax law and these changes are aimed at simplifying its application and enabling taxpayers to comply with its provisions. The new law has abolished the role of assessing officer who used o determine the income taxpayer and compute his tax liability. These responsibilities have now been entrusted to taxpayers himself. It has been claimed that under the new ordinance, the self-assessment procedure will be more meaningful and many conditions that were necessary for such an assessment have been withdrawn.

Tax related issues of a salaried individuals in pakistan