Income Tax Ordinance, 2001 — Section 67: Apportionment of deductions

67. Apportionment of deductions.— (1) Subject to this Ordinance, where an expenditure1[“expenditures, deductions and allowances”] relates to –

(a)the derivation of more than one head of income; or 2[(ab) derivation of income comprising of taxable income and any class of income to which sub-sections (4) and (5) of section 4 apply, or;]

(b)the derivation of income chargeable to tax under a head of income and to some other purpose, the expenditure 3[“expenditures, deductions and allowances”] shall be apportioned on any reasonable basis taking account of the relative nature and size of the activities to which the amount relates.

(2)The 4[Board] may make rules under section 5[237] for the purposes of apportioning deductions 6[expenditures and allowances]. 1 Substituted by the Finance Act, 2016. 2 Inserted by the Finance Act, 2002. 3 Substituted by the Finance Act, 2016. 4 The words “Central Board of Revenue” substituted by the Finance Act, 2007. 5 The figure “232” substituted by the Finance Act, 2002. 6 Inserted by the Finance Act, 2016. 137 Chapter IV – Common Rules