Historical background of income tax law in Pakistan

1) Promulgation of Income Tax Act, 1922:

When Pakistan came into being, the Government of Pakistan promulgated the Income Tax Act, 1922, as adapted upto the date for acclimation the taxation arrangement in Pakistan.

2) An Applicability of the Income Tax Act, 1922:

The accoutrement of the Act were continued to the accomplished of Pakistan except the defined areas.

3) Formation of the Taxation Inquiry Committee:

"A Taxation Inquiry Committee", was alien in 1958 which was abide of admiral and the assembly of barter and commerce.

4) Recommendations of Taxation Inquiry Committee:

"Taxation Inquiry Committee" submitted a address afterwards agog assay of prevailing tax arrangement and appropriate some recommendations. Some of the recommendations were accommodated which resulted in the alteration of Assets Tax Act, 1922.

5) Abolishment of Cool Tax:

Before 1959, cool tax was imposed on the incomes of all the bodies but in registered close and companies.

6) Expression of Rate Slab as a Allotment of Income:

In 1959, the ante of anniversary slab were bidding as a allotment of assets because the recommendations of "Taxation Inquiry committee".

7) Change in Banking Year:

Before 1960, the banking year was advised from 1st April to 31st March but in 1960, it was afflicted from 1st July to 30th June.

8) Addition of Assets Tax Committee:

In 1961, FBR alien an "Income Tax Committee". Main purpose of addition of such board was to accomplish recommendations for description of the Assets Tax Act, 1922 and action of taxation.

9) Addition of Self Appraisal Scheme:

Before 1965, an appraisal administrator was adjourned the assets and bent the tax accountability of the being but in 1965, "Self Appraisal Scheme" was introduced.

10) Promulgation and Enforcement of the Assets Tax Ordinance, 1979:

Till 1979, lot of amendments were fabricated in the ambience of the Assets Tax Act, 1922. As a aftereffect of these amendments, the Act became a complicated law and difficulties arose in its working. Keeping these difficulties in view, the Government promulgated a new assets tax law namely "The Assets Tax Ordinance, 1979" through the Finance Ordinance on June 28, 1979 and included all the basal abstraction of the repealed Act, so that the account of the accomplished case law congenital up over the endure 57 years is not rendered useless.

11) Formation of National Tax Reform Commission:

In 1985, the Federal Government formed a National Tax Reform Commission. It was abide of associates of Senate and National Assembly, top government admiral and acclaimed industrialist. Major purpose of such agency was to advance way and agency to advance the absolute anatomy of tax laws in Pakistan.

12) Assets Tax Analysis 1999-2000:

In 1999-2000, beneath the Assets Tax Ordinance, 1979, an assets tax analysis was conducted to assay the prevailing taxation anatomy and to annex the suggestions and recommendations from surveyors.

13) Addition of Tax Absolution Schemes:

Many tax absolution schemes were alien beneath the Assets Tax Ordinance, 1979. These schemes were alien to accommodate a adventitious to atramentous money holders, so that they can change their atramentous money into white money. Latest arrangement was alien in the year 2002.

14) Promulgation of the Assets Tax Ordinance, 2001:

After 22 years of the promulgation of the Assets Tax Ordinance, 2001, to improve the taxation system, a government of Pakistan alien a new assets tax law namely, "The Assets Tax Ordinance, 2001" which was promulgated on September 13, 2001. It was appear in the Extraordinary Gazette of Pakistan at pages address Nos. 969 to 1217.

15) Abbreviate Appellation of the Assets Tax Ordinance, 2001:

Under area 1, the Ordinance specifies that "The Assets Tax Ordinance, 2001" shall be the abbreviate appellation of the law.

16) Applicability of the Assets Tax Ordinance, 2001:

Under area 1, the Ordinance specifies that the Assets Tax Ordinance, 2001 shall extend to the accomplished of Pakistan.

17) Date of the Enforcement of the Assets Tax Ordinance 2001:

Section 1 of the Ordinance, empowers the Federal Government to acquaint the date from which the Assets Tax Ordinance, 2001 shall came into force. The Federal Government, vide its notification No. S.R.O. 381 (1)/ 2002, anachronous 15th June, 2002, appear that the Assets Tax Ordinance, 2001 shall came into force on the aboriginal day of July, 2002.

18) Status of the Assets Tax Ordinance, 2001:

According to area 3 "The Assets Tax Ordinance, 2001" overrides added laws acknowledged in Pakistan. It means, in case of any bucking amid the accoutrement of the Assets Tax Ordinance, 2001 and any added law of the country, the accoutrement of the Assets Tax Ordinance, 2001 shall prevail.

19) Purpose of the Assets Tax Ordinance, 2001:

The conference of the Ordinance specifies the article of law. It specifies that the Assets Tax Ordinance, 2001, is promulgated to consolidate and to alter law apropos assets tax and accommodate for affairs accessory to and affiliated with the assets tax.

20) Assets Tax Rules, 2002:

The FBR beneath the ascendancy of area 237 of the Assets Tax Ordinance, 2001 fabricated the Assets Tax rules, 2002. These rules were appear on July1, 2002 in Extraordinary Gazette of Pakistan at pages 1819 to 1966.

21) Finance Act, 2009:

To amend the assets tax law in Pakistan according to the requirements of time, altered methods of changes accept been adopted by competent assets tax authorities like S.R.O's and Circular’s etc. Finance Act is the approved antecedent of change, it is presented in the ages of June in anniversary year. Finance Act, 2009 is one footfall to constancy action of change.