Scope of Regulation income tax of 2001

Extent of the Assets Tax Ordinance, 2001:

The Assets Tax Ordinance, 2001 applies to the accomplished of Pakistan. The analogue of chat "Pakistan" has been provided in Article 1(2) of the Constitution of Pakistan, 1973. The afterward territories accept been included therein:

1) Pakistan shall be a FederalRepublic to be accepted as the Islamic Republic of Pakistan.

2) The territories of Pakistan shall comprise—

a) The territories of Balochistan, the North-West Frontier, the Punjab and Sindh;

b) The IslamabadCapitalTerritory.

c) The Federally Administered Tribal Areas; and

d) Such States and territories as are or may be included in Pakistan, whether by accretion or otherwise.

3) [Majlis-e-Shoora (Parliament)] may by law accept into the Federation new States or areas on such agreement and altitude as it thinks fit.

a) "Tribal areas" agency the areas in Pakistan which; anon afore the basal day, were Tribal Areas, and includes—

i) The Tribal areas of Balochistan and the North-West Frontier Province; and

ii) The above States of Amb, Chitral, Dir and Swat;

b) "Provincially Administered Tribal Areas" means---

i) The commune of Chitral, Dir and Swat (which includes Kalam), the [The Tribal Area in Kohistan district], Malakand Protected Area, the Tribal Area abutting [Mansehra] commune and the above State of Amb: and

ii) Zhob district, Loralai commune (excluding Duki Tehsil), Dalbandin Tehsil of Chgai Commune and Marri and Bugti Tribal territories of Sibi district; and

c) "Federally Adminstered Tribal Areas" includes---

i) Tribal Areas abutting Peshawer district;

ii) Tribal Areas abutting Kohat district;

iii) Tribal Areas abutting Bannu district;

iv) Tribal Areas abutting Dera Ismail Khan distrct;

v) Bajaur Agency;

vi) Orakzai Agency;

vii) Mohamand Agency;

viii) Khyber Agency;

ix) Kurram Agency;

x) North Waziristan Agency; and

xi) South waziristan Agency.

Sources / apparatus of Assets Tax law:

The afterward are the capacity of assets tax law in Pakistan:

1) The Legislative Law, i.e. The Assets Tax Ordinance, 2001.

2) The Procedural Law, i.e. The Assets Tax rules, 2002.

3) The notifications, circulars etc. issued by the FBR.

4) The case law

5) Finance Acts or Ordinances.

1) Assets Tax Ordinance, 2001:

Income Tax Ordinance, 2001 is the basal basic of assets tax law in Pakistan. All the assets tax law revolves about the Assets Tax Ordinance, 2001. All affairs of taxation apropos ciphering of taxable income, ciphering of tax liability, transaction of tax, accretion of tax, appeals, refund, penalties and case etc. accept been discussed in the Ordinance. The Assets Tax Ordinance, 2001 has 240 sections which accept been discussed in 13 chapters. Each affiliate deals with a accurate accountable and has been disconnected into parts. Many locations accept been added subdivided into divisions. There are aswell Seven Schedules of the Assets Tax Ordinance, 2001. Each Schedule deals with a accurate accountable and has been disconnected into parts. Some locations are added subdivided into divisions. Schedules are aswell advised as allotment of the Ordinance.

2) Assets Tax Rules:

The FBR getting the authoritative physique and the accomplished assets tax controlling ascendancy in Pakistan is empowered to accomplish rules apropos the procedural affairs affiliated with the accomplishing of the anxious laws like the Assets Tax Ordinance, 2001. These rules are fabricated for the advice of its admiral as able-bodied as the tax payers. 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 Archive of Pakistan at pages 1819 to 1966. Assets tax rules accept the aforementioned force as the sections in the Assets Tax Authorization and such are implemented in the aforementioned manner.

3) Notifications, Instructions, Orders, SROs etc.:

Notifications, instructions, orders, SROs etc. are issued by the FBR u/s 206 of the Assets Tax Ordinance, 2001 for the advice of its officials. Similarly, the Federal Government is aswell empowered u/s 53 of the Assets Tax Ordinance, 2001 to absolved assertive types of Assets or specific bodies from assets tax and to appoint appropriate bargain ante for assertive bodies or acquiesce a abridgement in tax accountability by authoritative amendments to the Second Schedule to the Ordinance. Such amendments are usually fabricated by way of accustomed Authoritative Orders (SROs) issued by the Federal Government by notification in the official gazette. However, all such amendments during a accurate banking year accept to be placed afore the civic Accumulation at the end of that year.

4) Assets Tax Case Law:

Different disputes arises in account of apprehension the assets tax beneath the taxable limits, appraisal of persons, transaction and accretion of tax, refunds etc. brought about afore the competent authorities for accommodation in account of above-mentioned disputes. When such disputes are decided, these decisions are not alone advice in ambience the present disputes but aswell for approaching decisions and advertence to such decisions is after fabricated in adjustment to get all-important guidance.

5) Finance Acts or Ordinances:

In adjustment to accomplish the bread-and-butter requirements and added amusing and bread-and-butter needs of the country, some important amendments are fabricated in the prevailing assets tax authorization every year. Such changes should be accustomed by the assembly, if Accumulation is not in existence, President of Pakistan shall accept these changes. If such anniversary changes are accustomed by the Civic Assembly, are alleged Finance Act and if these are accustomed by President, are alleged Finance Ordinance. Finance Act or Authorization is presented for the advice apropos action of the computation, appraisal and administering etc. for the advancing tax year. For example, Finance Act, 2008 was acclimated to compute taxable income, tax accountability etc. of tax year 2009.