Income Tax Ordinance, 2001 — Section 169: Tax collected or deducted as a final tax

169. Tax collected or deducted as a final tax.— (1) This section shall apply where Chapter X – Procedure section (2) [or] 1section 156A or 2[sub-section (7) of section 236Z] 3[ ]4[ ] ] on the income from which it 5[was deductible].

(2)Where this section applies

(a)the income shall not be chargeable to tax under any head of income in computing the taxable income of the person;

(b)no deduction shall be allowable under this Ordinance for any expenditure incurred in deriving the income;

(c)the amount of the income shall not be reduced by

(i)any deductible allowance under Part IX of Chapter III; or

(ii)the set off of any loss;

(d)the tax deducted shall not be reduced by any tax credit allowed under this Ordinance; 6[ ]

(e)there shall be no refund of the tax collected or deducted Chapter X – Procedure 5, 6 1[and] 7 2[ ] 3[an assessment shall be treated to have been made under section 120 4[ ] 5[Explanation.— The expression, “an assessment shall be treated to have been made under section 120” means,

(a)the Commissioner shall be taken to have made an assessment of income for that tax year, and the tax due thereon equal to those respective amounts specified in the return 6[ ] ; and

(b)the return 7[ ] shall be taken for all purposes of this Ordinance to be an assessment order.] 8[ ] 9[(4) Where the tax collected or deducted is final tax under any provision of this Ordinance and hundred percent higher tax rate has been prescribed for the said tax under the Tenth Schedule, the final tax shall be the tax rate prescribed in the First Schedule and the excess tax collected under the Tenth Schedule specified for persons not appearing in the active taxpayers’ list shall be adjustable Chapter X – Procedure in case the return is filed before finalization of assessment as provided in rule 4 of the Tenth Schedule.] 353 Chapter X – Procedure PART VI REFUNDS