71st update dated December 31, 2009

 This update covers:-

-Finance (Amendment) Ordinance, 2009;

-Letter F. No.4(1)ITP/2008-49 ;
These are briefly summarized as follows:-

Part I – Income Tax Ordinance

1.        Amendments have been made in the Ordinance by the Finance (Amendment) Ordinance, 2009 dated October 28, 2009 in the following  sections:

2(clauses 2, 11B, 13, 13A, 38A, 48A & 65); 114(6), (6A); 116(2A); 119(6); 121(1)(a); 122(3); 122A(1); 122C; 127(1); 130(4); 137(2), (6); 146B(1); 161(1B); 162(2); 174(3); 177(1) to (10); 202; 203(1), (1A), (1B), (2) to (4); 205(1), (1A), (1B), (2), (3), (5), (6); 205A; 207; 209(2), (4); 210(1), (1A), (1B); 211(1), (2); 215(1), (2); 237(2); 239(3), (7); 239B.

Bulk of the amendments relate to the re-naming of various officers of the Department as officers of the Inland Revenue; the Appellate Tribunal as the Appellate Tribunal Inland Revenue; and additional tax as default surcharge.

However amendments have also been made as follows:

        -s. 114(6) and (6A), providing for revision of returns to benefit from lower default surcharge etc. where notice u/s 122(9) is issued or being issued.

        -s.116, providing for return in response to a provisional assessment to be accompanied by a wealth reconciliation and explanation of sources.

        -s. 122C, providing for a new mechanism for provisional assessment.

-s. 174, requiring records and accounts to be maintained for 6 years or till completion of all proceedings instead of the current 5 years.

-s. 177, extensive amendments re: powers of the Commissioner to call for record and accounts.

-s. 203, providing for the appointment and qualifications of Special Judges and related matters.

2.        On page 542A, new Rule 8A has been inserted by Letter F.No. 4(1)ITP/2008-49 dated December 23, 2009. This is re: Banking Companies – Tax Charge for Irrecoverable Debts.