Tax is the subject that changes most between sittings, so staying current is essential. Remember that the Income Tax Act 2023 replaced the old Income Tax Ordinance 1984 — any answer that still cites the 1984 Ordinance will lose marks. Here is a refresher on the areas examiners are testing now.
Cite the right law
The Income Tax Act 2023 replaced the Income Tax Ordinance 1984, effective from assessment year 2023–24. Any answer that still references the 1984 Ordinance will lose marks.
The governing law
All income tax questions are now framed under the Income Tax Act 2023 (effective from assessment year 2023–24). Make sure your section references and terminology follow the new Act, not the repealed Ordinance.
Areas to watch
- Personal income tax slabs and the tax-free threshold — confirm the current figures before the exam.
- Minimum tax and the treatment of return-filing requirements for individuals and companies.
- Withholding (TDS) provisions, which are heavily examined in computational questions.
- VAT and Supplementary Duty Act provisions, including input VAT rebate conditions.
- Corporate tax rates, which differ for listed, non-listed, and specific sectors such as banks and tobacco.
How to revise tax efficiently
Tax rewards structured computation. Build a standard pro-forma for total income and tax liability, then practise plugging different scenarios into it. Once the layout is automatic, you only have to think about the adjustments, not the format.
Always reference the Income Tax Act 2023. Citing the 1984 Ordinance signals you haven't kept up — and examiners notice.
