Taxpayers Allowed to File Settlement Application for Agreed Assessment

Taxpayers are allowed to file settlement application, by the government, for agreed assessment by inserting a new section 122D in the Income Tax Ordinance, 2001 through Finance Act 2020.

Taxpayers whose cases have been selected in audit and have been confronted through a show-cause, may avail this opportunity by applying online to the settlement committee, conveying this intention to go for agreed assessment and tax payable. The Committee will decide case within 30 days of filing of application by taxpayer.

Government is expecting that a large number of taxpayers under inspection will avail this opportunity, as taxpayers are allowed to file settlement application . This will decrease the pressure on available FBR resources which are being spent on litigation and will provide instant relief to the taxpayers.