Income Tax Ordinance, 2001 — Section 75: Disposal and acquisition of assets

75. Disposal and acquisition of assets.—(1) A person who holds an asset shall be treated as having made a disposal of the asset at the time the person parts with the ownership of the asset, including when the asset is

(a)sold, exchanged, transferred or distributed; or

(b)cancelled, redeemed, relinquished, destroyed, lost, expired or surrendered.

(2)The transmission of an asset by succession or under a will shall be treated as a disposal of the asset by the deceased at the time asset is transmitted.

(3)The application of a business asset to personal use shall be treated as a disposal of the asset by the owner of the asset at the time the asset is so applied. 1[(3A) Where a business asset is discarded or ceases to be used in business, it shall be treated to have been disposed of.]

(4)A disposal shall include the disposal of a part of an asset.

(5)A person shall be treated as having acquired an asset at the time the person begins to own the asset, including at the time the person is granted any right.

(6)The application of a personal asset to business use shall be treated as an acquisition of the asset by the owner at the time the asset is so applied.

(7)In this section, “business asset” means an asset held wholly or partly for use in a business, including stock-in-trade and a depreciable asset; and “personal asset” means an asset held wholly for personal use. 2 [75A. Purchase of assets through banking channel 3[or digital means].- (1) Notwithstanding anything contained in any other law, for the time being in force, no person shall purchase 1 Inserted by the Finance Act, 2003. 2 New section 75A inserted by the Finance Act, 2019. 3 Words inserted by the Finance Act, 2025. 143 Chapter IV – Common Rules

(a)immovable property having fair market value greater than five million Rupees; or

(b)any other asset having fair market value more than one million Rupees, otherwise than by a crossed cheque drawn on a bank or through crossed demand draft or crossed pay order or any other crossed banking instrument 1[or through digital means] showing transfer of amount from one bank account to another bank account.

(2)For the purposes of this section in case of immovable property, fair market value means value notified by the Board under sub-section (4) of section 68 or value fixed by the provincial authority for the purposes of stamp duty, whichever is higher.

(3)In case the transaction is not undertaken in the manner specified in sub-section (1),

(a)such asset shall not be eligible for any allowance under sections 22, 23, 24 and 25 of this Ordinance; and

(b)such amount shall not be treated as cost in terms of section 76 of this Ordinance for computation of any gain on sale of such asset.]