The document discusses the Income Tax Ordinance of 2001 in Pakistan. It provides some background and history on the ordinance. A commission report from May 2001 recommended replacing the previous 1979 ordinance. The new 2001 ordinance was published in September 2001 and became effective from July 2002. It overhauled the previous law by abolishing the role of assessing officers and requiring taxpayers to self-assess their tax liability. The government claimed the new ordinance would bring revolutionary changes and make the tax law easier to understand and aligned with global standards. The ordinance has since been amended annually through Finance Ordinances or Acts.

1. All about Ordinance
2001

3. ACT & LAW
*ACT*
Once the Bill has been passed by the legislature, it is send to the President or the
Governor, as the case may be for the approval. By receiving his assent, it becomes an
Act. An Act is a law which is made by the legislature like Parliament or State
Legislative Assembly.
*LAW*
The term 'law' in general refers to the set of regulations or rules to be followed.
Law can be in the form of an act, ordinance, order, by-laws, rule, regulation etc. An
act is a subset of law.

4. INCOME TAX ORDINANCE, 2001
History:
• A Commission constituted by the government submitted its report in
May 2001 which suggested that Income Tax Ordinance, 1979 should be
replaced by Income Tax Ordinance, 2001.
• This new Income Tax Ordinance was published on 13 September, 2001
and became effective from 1 July, 2002.
• Before publication necessary changes have been made through
Finance Ordinance, 2002.
• The assessments of tax year 2003 onwards are finalized under Income
Tax Ordinance, 2001.

5. INCOME TAX ORDINANCE, 2001
• The Central Board of Revenue has claimed that the new
Ordinance is justifiable, easy to understand and in
accordance with the global environments.
• The government claims that by introduction of this
Ordinance truly revolutionary changes have been brought
in the income tax law.

6. INCOME TAX ORDINANCE, 2001
• The new law has abolished the role of "assessing officer"
who used to determine the income of taxpayer and
compute his tax liability.
• Now the taxpayer assesses his own tax liability.
• The government is hopeful that the new law will obtain
uniformity in tax rates and tax treatment.
• A lot of changes have already been made through Finance
Order, 2002 in the Ordinance.

7. Income Tax Ordinance, 2001 (as Amended)
• It is the basic constituent of income tax law in our country. On its basis, the whole
taxation structure of the country is founded.
• The whole procedure of taxation including matters regarding payment of tax,
collection of tax, penalties, assessment, refund, appeals etc. has been provided in
the Ordinance.
• It consists of thirteen chapters. Each chapter deals with particular subject and has
been divided into parts. Many parts are further subdivided into divisions.
• There are 240 sections of the new Ordinance as compared to 167 sections of
Income Tax Ordinance, 1979 (repealed).
• The Ordinance also contains eight schedules. Schedules are also treated as part of
the Ordinance.
• The changes in the Income Tax Ordinance, 2001, are brought about by the Finance
Ordinance or Finance Act every year. Such changes are of a permanent nature.

8. Finance Acts Or Ordinances
• In Order to meet the budgetary requirements and other social and
economic needs of the country an annual law known as Finance Act or
financial year are also specified.
• Rates of tax applicable for the next tax year are also laid down by the
Finance Act or Ordinance. These changes are made in order to bring
the law in line with the changing economic environments of the
country.

9. Thanks