ByLahore, Pakistan: The Lahore High Court (LHC) has ruled that the enhanced rates of withholding tax on late filers of income tax returns will not be applicable to transactions completed before the promulgation of the Finance Act 2024.
The LHC rejected the government’s attempt to apply the increased rates retroactively, stating that such a move would be unlawful. ProPakistani
The court emphasized that the provisions of the Finance Act 2024 should be applied prospectively and should not affect past transactions.
This decision provides relief to taxpayers who have already completed their tax returns for the year 2023-24. The LHC’s ruling clarifies the legal position on the applicability of the increased tax rates and will have implications for future tax assessments.
