Remittance through Non-Banking Channels
The previous section 111 of the Income Tax Ordinance stated that foreign remittances could only be accepted through the banking channel. This created issues for people who used money exchange services, as their remittances were not considered legal. However, the new amendment to Section 111 clears this ambiguity by allowing remittance through money service bureaus, exchange companies, or money transfer operators. This move is expected to make it easier for Pakistanis to remit money through legal channels and reduce the burden on the banking system.
Assessment Timeframe Extension
Section 121(3) of the Income Tax Ordinance, 2001, deals with the timeframe for tax assessments. Previously, the Federal Board of Revenue (FBR) could make assessments for up to five years. However, the new Finance Bill 2022 has increased this timeframe to six years. This means that the FBR now has an additional year to review the tax returns and assess any discrepancies.
Timeframe for Conclusion of Assessment Proceedings
The amendment to Section 122(9) of the Income Tax Ordinance, 2001, now requires the FBR to conclude assessment proceedings within 180 days of issuing the assessment notice. This is a change from the previous timeframe of 120 days. The extension of the timeframe will allow taxpayers to have more time to prepare and respond to the assessment notice.
The changes introduced in the Finance Bill 2022 will have a significant impact on how remittances are handled in Pakistan and how assessments are conducted by the FBR. These changes will make it easier for Pakistanis to remit money through legal channels and help the FBR in conducting fair assessments. It is important for taxpayers to stay up-to-date with any changes in tax laws and regulations to ensure compliance and avoid penalties.