ISLAMABAD: Lahore High Court (LHC) has declared that the enhanced rates of withholding tax on late filers of income tax returns would not be applicable on transactions/ returns/ assessments completed prior to the promulgation of the Finance Act 2024.
In this regard, the LHC has issued an order on a petition filed by Defence Housing Authority.
LHC order said that the writ petition seeks a declaration from this court to the effect that the amendments made in section 100BA read with Rule 1-A of the Tenth Schedule introduced in the Income Tax Ordinance 2001 through Finance Act 2024 are prospective in nature.
The writ petition has been allowed and it is declared that rule 1-A and its proviso do not have any retrospective operation and that these provisions shall have no effect on the transactions/ returns/ assessments concluded and completed prior to the promulgation of the Finance Act 2024, LHC added.
Copyright Business Recorder, 2024
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