ISLAMABAD: The federal government has withdrawn the discretionary powers of conducing inquiry in certain tax matters by Commissioners Inland Revenue.
Finance Minister Shaukat Tarin while presenting budget 2021/2022 on Friday announced curtailing the discretionary power of the tax authorities.
He said that the discretionary powers of the income tax authorities are proposed to be curtailed:
(1) Tax authorities can conduct inquiry in certain matters regarding amendment of assessment without selection of case for audit. The power to conduct inquiry is proposed to be withdrawn;
(2) Time limit for disposal of show cause notices is proposed to be 120 days; and
(3) The power of the commissioner to reject advance tax estimates has also been proposed to be withdrawn.