Payments for goods, services, and contracts Section 153
Payments for goods, services, and contracts Section 153: Finance Act, 2024 — Explanation regarding Important Amendments made in the Income Tax Ordinance, 2001
Important amendments made in Income Tax Ordinance, 2001 (“the Ordinance”) through Finance Act, 2024 are explained in the subsequent paragraphs.
Payments for goods, services, and contracts Section 153
Under, subsection (4) of section 153, the Commissioner on an application by a recipient of payment referred to in sub-section (1) of section 153, where tax deductible was not minimum, could issue a certificate without deduction of tax or deduction of tax at reduced rate. Through the Finance Act, 2024, sub-section (4) of section 153 has been substituted and now the Commissioner cannot issue a certificate without deduction of tax. Instead, the Commissioner can only issue a reduced rate certificate but such reduction shall not exceed 80% of the rate specified in Division III of Part III of the First Schedule.
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