Income Tax Ordinance 2001

Section Related to
Chapter III
Tax on taxable income
Part I
Computation of Taxable Income
9 Taxable Income
10 Total Income
11 Heads of income
Part II
Head of income Salary
12 Salary
13 Value of perquisite
14 Employee share schemes
Part III
Head of Income: Income from Property
15 Income from Property
15-A Deductions in computing income chargeable under the head “income from
property”
16 Non-adjustable amounts received in relation to buildings
Part IV
Head of Income: Income from Business
18 Income from business
19 Speculation business
Division II
Deductions: General Principles
20 Deductions in computing income chargeable under head “Income from
Business”
21 Deduction not allowed
Division III
Deductions: Special Provisions
22 Depreciation
23 Initial allowance
23-A First year allowance
23-B Accelerated depreciation to alternate energy projects
24 Intangibles
25 Pre-commencement expenditure
26 Scientific research expenditure
27 Employees training and facilities
28 Profit on debt, financial costs and lease payments
29 Bad debts
29-A Provision regarding consumer loans
30 Profit on non-performing debts of a banking company or development
financial institution
31 Transfer on participatory reserve
Division IV
Tax Accounting
32 Method of accounting
33 Cash-basis accounting
34 Accrual-basis accounting
35 Stock-in-trade
36 Long-term contracts
Part V
Head of Income: Capital Gains
37 Capital gains

37A Capital gain on disposal of securities

38 Deduction of losses in computing the amount chargeable under head “Capital
Gains
Part VI
Head of Income: Income from other sources
39 Income from other sources
40 Deduction of losses in computing the amount chargeable under head “Income
from other sources”
Part VII
Exemptions and Tax Concessions
41 Agricultural income
42 Diplomatic and UN exemptions
43 Foreign government officials
44 Exemptions under international agreement
45 President’s honor
46 Profit on debt
47 Scholarships
48 Support payment under agreement to live apart
49 Exemption of Federal government, provincial government and local
government
50 Foreign source income of short-resident individuals
51 Foreign source income of returning expatriate
53 Exemptions and tax concessions in Second Schedule
54 Exemption and tax concessions in other laws will not apply until provided in
this Ordinance also
55 Limitation on exemption
Part VIII
Losses
56 Set off of losses
56-A Set off of losses of companies operating hotels
57 Carry forward of business losses
57-A Set off of business loss consequent to amalgamation
58 Carry forward of speculation business losses
59 Carry forward of capital losses
59-A Limitation on set off and carry forward of losses
59-AA Group taxation
59-B Group relief
Part IX
Deductible Allowances
60 Zakat
60-A Workers’ welfare fund
60-B Workers’ participation fund
Part X
Tax Credits
61 Charitable donations
62 Tax credit for investment in share and insurance
63 Contribution to approved Pension Fund
64 Profit on debt
65 Misc provisions related to tax credits
65-A Tax credit for person registered under Sales Tax Act 1990
65-B Tax credit for investment
65-C Tax credit for enlistment
65-D Tax credit for newly established industrial undertakings
65-E Tax credit for industrial undertaking established before the 1st day of July
2011
Chapter X
Part IV
Collection and Recovery of Tax
137 Due date for tax payment
138 Recovery of taxes out of property and through arrest of taxpayer
138-A Recovery of taxes by District Officer (Revenue) upon forwarded by
commissioner IR as if it is revenue dues
138-B Tax liability will pass on to the estate in bankruptcy
139 Collection of tax in the case of private companies and associations of persons
will be collected from:
140 Recovery of taxes from persons holding money on behalf of a tax payer
141 Liquidators
142 Recovery of Tax due by non-resident member of an association of persons will
be received from resident member of AOP
143 Non-resident ship owner or character
144 Non-resident aircraft owner or character should file return of gross amount to
be filed in 45 days from last days of each quarter
145 Assessment of person about to leave Pakistan
146 Recovery of tax from person assessed in AJK
146-A Initiation, validity, etc. of recovery proceedings at any time by commissioner
u/s 138-A
146-B Tax arrears settlement incentive scheme