The Income Tax Ordinance, 2001 has undergone significant revisions through the enactment of new Tax Laws (Amendment) Act, 2024.
Key updates to the Income Tax Ordinance aim to streamline tax appeals and improve efficiency.
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Higher Value Cases [Section 122A]:
- Commissioner’s review authority is limited to assessments under Rs 20 million.
- Larger cases go directly to a senior body for potentially faster and more qualified oversight.
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Appeal Process [Section 124]:
- Time limits for appeals remain unchanged.
- Only appeals under Rs 20 million are handled by the Commissioner (Appeals), reducing workload.
- A new section defines the financial value thresholds for appeals to different authorities.
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Appellate Tribunal [Section 130]:
- The Tribunal is restructured with defined roles, appointment criteria, and powers.
- Members will have specific qualifications to enhance effectiveness.
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Appeal Filing [Section 131]:
- Time to file appeals is reduced from 60 to 30 days.
- Filing fees are increased to deter frivolous appeals.
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Faster Resolutions [Section 134A]:
- The Tribunal must decide appeals within 90 days (down from 180 days).
- Dispute resolution through Alternative Dispute Resolution (ADR) is encouraged for cases under Rs 50 million (previously Rs 100 million).
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High Court Appeals [Section 133]:
- The timeframe to file a reference to the High Court is shortened to 30 days.
- A new case management system is expected to expedite processing.
These changes aim to create a more efficient tax system with faster dispute resolutions and clearer jurisdictional lines. Taxpayers and professionals are advised to stay informed about these updates.
