Overview
The Federal Board of Revenue (FBR) has issued a new statutory regulatory order, S.R.O. 2076(I)/2025, on November 6, 2025, introducing amendments to the Income Tax Rules, 2002. The new amendments pertain specifically to Rule 231C, which governs the remuneration of members of committees appointed under Section 134A of the Income Tax Ordinance, 2001.
This notification supersedes the earlier S.R.O. 765(I)/2025, dated May 8, 2025, and is deemed effective from March 4, 2025.
Key Highlights of the Notification
1. One-Time Remuneration for Committee Members
The revised rule introduces updated lump-sum payments for committee members after the conclusion of their decision-making process under sub-rule (8). The remuneration is categorized as follows:
For tax liability up to Rs. 50 million:
Chairperson: Rs. 300,000
Committee Member: Rs. 150,000
For tax liability exceeding Rs. 50 million:
Chairperson: Rs. 500,000
Committee Member: Rs. 250,000
Note: These amounts exclude the Chief Commissioner Inland Revenue.
2. Travel and Daily Allowance (TA/DA)
In addition to the remuneration, Chairpersons or Committee Members may also claim TA/DA benefits equivalent to those admissible to BPS-22 and BPS-21 officers of the Federal Government, respectively.
Effective Date
The revised rules are deemed to have come into effect retroactively from March 4, 2025.
Significance of the Update
The updated remuneration structure reflects FBR’s efforts to standardize and enhance compensation for committee members who handle complex tax adjudications. By linking remuneration to the size of tax liability, the new framework ensures fair recognition of the workload and responsibility undertaken by committee members.
Moreover, the inclusion of TA/DA entitlements brings the compensation structure in line with federal standards, promoting transparency and motivation among officials involved in tax resolution processes.
Conclusion
The issuance of S.R.O. 2076(I)/2025 is a step forward in improving administrative efficiency within the FBR’s dispute resolution framework. These amendments are expected to encourage quicker and more effective handling of tax-related matters, ultimately benefiting both taxpayers and the revenue administration system.