Income tax law
This is about a recent press report that the existing Income Tax Ordinance, 1984 has been sought to be replaced by a new draft by the International Monetary Fund. This is rather an extraordinary move in view of the fact that after much deliberation drafting of the existing ordinance was completed.
The intention was to rationalise the Income Tax Act of 1922, amended every year, regroup similar sections, turning provisions and sub-sections into independent sections. After 1984 the IT Ordinance has been extensively amended, but it has stood the test of time.
Long ago, the Income Tax Department was served in top positions by two ICS Chartered Accountants, and also an ICS officer having the highest degree in mathematics from Cambridge. There have been other illustrious persons who served the Income Tax Department.
However, I am not aware of any situation in which these illustrious officials wanted wholesale amendment to the Income Tax Act. They emphasised intensive study and right application of the law, not arbitrary and prejudiced action in contravention of the law and well-settled judicial opinions. Frequent amendments, or wholesale replacement of the act is not desirable, because financial statutes all over the world are difficult. The work of amendment must proceed with caution.
There may be an assessment of the effect of major amendments coinciding with Five-Year plans. At any rate, informed public opinion may be sought on specific points.
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