Income Tax Ordinance, 2001

261 sections, in full, as enacted. This is legal information, not legal advice.

• s. 1Short title, extent and commencement
• s. 3Ordinance to override other laws
• s. 4Tax on taxable income
• s. 4CSuper tax on high earning persons
• s. 5Tax on dividends
• s. 5AATax on return on investments in sukuks
• s. 6Tax on certain payments to non-residents
• s. 6ATax on payments for digital transactions in e-commerce platforms
• s. 7Tax on shipping and air transport income of a non-resident person
• s. 7CTax on builders
• s. 7ETax on deemed income
• s. 9Taxable income
• s. 10Total Income
• s. 11Heads of income
• s. 12Salary
• s. 13Value of perquisites
• s. 14Employee share schemes
• s. 15Income from property
• s. 16Non-adjustable amounts received in relation to buildings
• s. 18Income from business
• s. 19Speculation business
• s. 22Depreciation
• s. 23BAccelerated depreciation to alternate energy projects
• s. 24Intangibles
• s. 25Pre-commencement expenditure
• s. 26Scientific research expenditure
• s. 27Employee training and facilities
• s. 28Profit on debt, financial costs and lease payments
• s. 29Bad debts
• s. 29AProvision regarding consumer loans
• s. 31Transfer to participatory reserve
• s. 32Method of accounting
• s. 33Cash-basis accounting
• s. 34Accrual-basis accounting
• s. 35Stock-in-trade
• s. 36Long-term contracts
• s. 37Capital gains
• s. 39Income from other sources
• s. 41Agricultural income
• s. 42Diplomatic and United Nations exemptions
• s. 43Foreign government officials
• s. 45President’s honours
• s. 46Profit on debt
• s. 47Scholarships
• s. 48Support payments under an agreement to live apart
• s. 50Foreign-source income of short-term resident individuals
• s. 51Foreign-source income of returning expatriates
• s. 53Exemptions and tax concessions in the Second Schedule
• s. 56Set off of losses
• s. 57Carry forward of business losses
• s. 57ASet off of business loss consequent to amalgamation
• s. 58Carry forward of speculation business losses
• s. 59Carry forward of capital losses
• s. 59ALimitations on set off and carry forward of losses
• s. 59CCarry forward of business losses of sick industrial units
• s. 60Zakat
• s. 60AWorkers’ Welfare Fund
• s. 60BWorkers’ Participation Fund
• s. 61Charitable donations
• s. 63Contribution to an Approved Pension Fund
• s. 65Miscellaneous provisions relating to tax credits
• s. 65CTax credit for enlistment
• s. 65GTax credit for specified industrial undertakings
• s. 66Income of joint owners
• s. 67Apportionment of deductions
• s. 68Fair market value
• s. 69Receipt of income
• s. 70Recouped expenditure
• s. 71Currency conversion
• s. 72Cessation of source of income
• s. 73Rules to prevent double derivation and double deductions
• s. 74Tax year
• s. 75Disposal and acquisition of assets
• s. 76Cost
• s. 77Consideration received
• s. 79Non-recognition rules
• s. 80Person
• s. 81Resident and non-resident persons
• s. 82Resident individual
• s. 83Resident company
• s. 84Resident association of persons
• s. 85Associates
• s. 86Principle of taxation of individuals
• s. 87Deceased individuals
• s. 88An individual as a member of an association of persons
• s. 89Authors
• s. 90Transfers of assets
• s. 91Income of a minor child
• s. 92Principles of taxation of associations of persons
• s. 94Principles of taxation of companies
• s. 95Disposal of business by individual to wholly-owned company
• s. 97Disposal of asset between wholly-owned companies
• s. 98Change in control of an entity
• s. 98AChange in the constitution of an association of persons
• s. 98CSuccession to business, otherwise than on death
• s. 99Special provisions relating to insurance business
• s. 100DSpecial provisions relating to builders and developers
• s. 100ESpecial provisions relating to small and medium enterprises
• s. 101Geographical source of income
• s. 102Foreign source salary of resident individuals
• s. 103Foreign tax credit
• s. 104Foreign losses
• s. 106Thin capitalisation
• s. 108Transactions between associates
• s. 108BTransactions under dealership arrangements
• s. 109Recharacterisation of income and deductions
• s. 110Salary paid by private companies
• s. 111Unexplained income or assets
• s. 112Liability in respect of certain security transactions
• s. 113Minimum tax on the income of certain persons
• s. 113CAlternative Corporate Tax
• s. 114Return of income
• s. 114BPowers to enforce filing of returns
• s. 114CRestriction on economic transactions by certain persons
• s. 115Persons not required to furnish a return of income
• s. 116Wealth statement
• s. 116AForeign income and assets statement
• s. 117Notice of discontinued business
• s. 118Method of furnishing returns and other documents
• s. 119Extension of time for furnishing returns and other documents
• s. 120Assessments
• s. 121Best judgement assessment
• s. 122BRevision by the 2[Chief Commissioner]
• s. 123Provisional assessment in certain cases
• s. 124Assessment giving effect to an order
• s. 124APowers of tax authorities to modify orders, etc
• s. 125Assessment in relation to disputed property
• s. 126Evidence of assessment
• s. 127Appeal to the Commissioner (Appeals)
• s. 128Procedure in appeal
• s. 129Decision in appeal
• s. 130Appellate Tribunal
• s. 131Appeal to the Appellate Tribunal
• s. 133Reference to High Court
• s. 134AAlternative Dispute Resolution
• s. 136Burden of proof
• s. 137Due date for payment of tax
• s. 138Recovery of tax out of property and through arrest of taxpayer
• s. 138ARecovery of tax by District Officer (Revenue)
• s. 138BEstate in bankruptcy
• s. 141Liquidators
• s. 143Non-resident ship owner or charterer
• s. 144Non-resident aircraft owner or charterer
• s. 145Assessment of persons about to leave Pakistan
• s. 146AInitiation, validity, etc
• s. 146BTax arrears settlement incentives scheme
• s. 146CAssistance in the recovery and collection of taxes
• s. 146DRecovery of liability outstanding under other laws
• s. 147Advance tax paid by the taxpayer
• s. 147AAdvance tax from provincial sales tax registered person
• s. 148Imports
• s. 149Salary
• s. 150Dividends
• s. 151Profit on debt
• s. 151AGain arising on disposal of certain debt securities
• s. 152Payments to non-residents
• s. 154Exports
• s. 154AExport of Services
• s. 156APetroleum Products
• s. 159Exemption or lower rate certificate
• s. 160Payment of tax collected or deducted
• s. 161Failure to pay tax collected or deducted
• s. 163Recovery of amounts payable under this Division
• s. 164Certificate of collection or deduction of tax
• s. 165Statements
• s. 165AFurnishing of information by banks
• s. 166Priority of tax collected or deducted
• s. 167Indemnity
• s. 168Credit for tax collected or deducted
• s. 169Tax collected or deducted as a final tax
• s. 170Refunds
• s. 171Additional payment for delayed refunds
• s. 172Representatives
• s. 173Liability and obligations of representatives
• s. 174Records
• s. 175Power to enter and search premises
• s. 175AReal-time access to information and databases
• s. 175BNational Database and Registration Authority (NADRA)
• s. 175CPosting of officer of Inland Revenue
• s. 176Notice to obtain information or evidence
• s. 177Audit
• s. 178Assistance to Commissioner
• s. 180Power to collect information regarding exempt income
• s. 181Taxpayer’s registration
• s. 181BTaxpayer card
• s. 181CDisplaying of National Tax Number
• s. 183Exemption from penalty and default surcharge
• s. 191Prosecution for non-compliance with certain statutory obligations
• s. 191AProsecution for failure to furnish information in return of income
• s. 191BProsecution for non-registration
• s. 192Prosecution for false statement in verification
• s. 192AProsecution for concealment of income
• s. 192BProsecution for concealment of an offshore asset
• s. 193Prosecution for failure to maintain records
• s. 194Prosecution for improper use of National Tax Number 4[Certificate]
• s. 195Prosecution for making false or misleading statements
• s. 195BProsecution for enabling offshore tax evasion
• s. 196Prosecution for obstructing 4[an income tax authority
• s. 197Prosecution for disposal of property to prevent attachment
• s. 199Prosecution for abetment
• s. 200Offences by companies and associations of persons
• s. 201Institution of prosecution proceedings without prejudice to other action
• s. 202Power to compound offences
• s. 203Trial by Special Judge
• s. 203AAppeal against the order of a Special Judge
• s. 203BPower to arrest and prosecute
• s. 203CProcedure to be followed on arrest of a person
• s. 203DSpecial Judges
• s. 203ECognizance of offences by Special Judges
• s. 203FSpecial Judge, etc
• s. 203GProvisions of Code of Criminal Procedure, 1898, to apply
• s. 203HTransfer of cases
• s. 203IPlace of sittings
• s. 204Power to tender immunity from prosecution
• s. 206Circulars
• s. 207Income tax authorities
• s. 208Appointment of income tax authorities
• s. 209Jurisdiction of income tax authorities
• s. 209AUniform
• s. 210Delegation
• s. 211Power or function exercised
• s. 213Guidance to income tax authorities
• s. 214Income tax authorities to follow orders of the 4[Board]
• s. 214ACondonation of time limit
• s. 214EClosure of audit
• s. 215Furnishing of returns, documents etc
• s. 216Disclosure of information by a public servant
• s. 216AProceeding against authority and persons
• s. 217Forms and notices; authentication of documents
• s. 218Service of notices and other documents
• s. 221Rectification of mistakes
• s. 222Appointment of expert
• s. 223Appearance by authorised representative
• s. 224Proceedings under the Ordinance to be judicial proceedings
• s. 225Proceedings against companies under liquidation
• s. 226Computation of limitation period
• s. 227Bar of suits in Civil Courts
• s. 227AReward to officers and officials of Inland Revenue
• s. 227CRestriction on purchase of certain assets
• s. 227EE-hearing
• s. 230Directorate General (Intelligence and Investigation), Inland Revenue
• s. 230ADirectorate-General of Withholding Taxes
• s. 230HDirectorate General of Valuation
• s. 230IDirectorate General of Compliance Risk Management
• s. 230JInternational Centre of Tax Excellence
• s. 230KTax Fraud Investigation Wing Inland Revenue
• s. 231BAdvance tax on 2[ ] motor vehicles
• s. 231CAdvance tax on foreign domestic workers
• s. 235Electricity consumption
• s. 236Telephone 1[and internet] users
• s. 236AAdvance tax at the time of sale by auction
• s. 236CAdvance Tax on sale or transfer of immovable Property
• s. 236GAdvance tax on sales to distributors, dealers and wholesalers
• s. 236HAdvance tax on sales to retailers
• s. 236KAdvance tax on purchase or transfer of immovable property
• s. 236LAdvance tax on purchase of international air ticket
• s. 236WTax on purchase or transfer of immovable property
• s. 236ZBonus shares issued by companies
• s. 237Power to make rules
• s. 239Savings
• s. 240Removal of difficulties