Income Tax Ordinance, 2001 — Section 117: Notice of discontinued business

117. Notice of discontinued business.— (1) Any person discontinuing a business shall give the Commissioner a notice in writing to that effect within fifteen days of the discontinuance.

(2)The person discontinuing a business shall, under the provisions of this Ordinance or on being required by the Commissioner by notice, in writing, furnish a return of income for the period commencing on the first day of the tax year in which the discontinuance occurred and ending on the date of discontinuance and this period shall be treated as a separate tax year for the purposes of this Ordinance. 1 Sub section (4) omitted through Finance Act, 2020 dated 30th June 2020 omitted sub-section read as follows;

(4)Every person (other than a company5 [or an association of persons])filing statement under sub-section (4) of section 115, falling under final tax regime (FTR) 6 [ ] shall file a wealth statement along with reconciliation of wealth statement.] 2 Inserted by the Finance Act 2018. 237 Chapter X – Procedure

(3)Where no notice has been given under sub-section (1) but the Commissioner has reasonable grounds to believe that a business has discontinued or is likely to discontinue, the Commissioner may serve a notice on the person who has discontinued the business or is likely to discontinue the business to furnish to the Commissioner within the time specified in the notice a return of income for the period specified in the notice.

(4)A return furnished under this section shall be treated for all purposes of this Ordinance as a return of income, including the application of Section 120.