KCCI has suggested FBR to abolish multiple provisions of audit under the Income Tax Ordinance, 2001, simplify procedure for ease of doing business, and exclude manufacturers of fast moving consumer goods (FMCGs) from application of withholding tax under Section 236G and 236H on Income Tax Ordinance, 2001. KCCI in its proposals for budget FY22 said that presently audit proceedings can be started u/s 177 as well as through balloting u/s 214C and likewise enquiries can also be made by the Commissioner u/s 122(5A). There is a concept of a special audit panel u/s 177(11) as well. The sub-section 7 is ambiguous and provides the commissioner and his subordinates with a tool to harass, extort and victimize any taxpayer at will, it said. The chamber proposed that all audit functions should be brought under one provision of Income Tax Ordinance rather than various overlapping provisions with clear and well defined parameters.
31/3/2021