TAXATION

INCOME TAX
ACC-303

GENERAL SALES TAX

PROVINCIAL SALES TAX
 INCOME TAX ORDINANCE, 2001
 CHAPTER 1 – PRELIMINARY  CHAPTER 4 – COMMON RULES
 CHAPTER 2 – CHARGE TO TAX  CHAPTER 5 – PROVISIONS GOVERNING
 CHAPTER 3 – TAX ON CHARGEABLE PERSONS
INCOME  CHAPTER 6 – SPECIAL INDUSTRIES
 PART I – COMPUTATION OF TAXABLE INCOME
 CHAPTER 7 – INTERNATIONAL
 PART II - HEAD OF INCOME – SALARY
 PART III - HEAD OF INCOME – INCOME FROM
 CHAPTER 8 – ANTI AVOIDANCE
PROPERTY
 CHAPTER 9 – MINIMUM TAX
 PART IV - HEAD OF INCOME – INCOME FROM
BUSINESS  CHAPTER 10 – PROCEDURE
 PART V - HEAD OF INCOME – CAPITAL GAINS
 CHAPTER 11 – ADMINISTRATION
 PART VI - HEAD OF INCOME – INCOME FROM
OTHER SOURCES  CHAPTER 12 – TRANSITIONAL ADVANCE
 PART VII – EXEMPTIONS AND TAX
CONCESSIONS
TAX PROVISIONS
 PART VIII – LOSSES  CHAPTER 13 – MISCELLANEOUS
 PART IX – DEDUCTIBLE ALLOWANCES
 PART X – TAX CREDITS
 SCHEDULES TO THE INCOME TAX ORDINANCE, 2001
SCHEDULE SUBJECT MATTER
FIRST RATES OF TAX
SECOND EXEMPTIONS AND TAX CONCESSIONS
PART I – EXEMPTIONS FROM TOTAL INCOME PARI II - REDUCTION IN TAX RATES
PART III - REDUCTION IN TAX LIABILITY PART IV - EXEMPTION FROM SPECIFIC
PROVISIONS
THIRD DEPRECIATION AND AMORTIZATION
FOURTH RULES FOR INSURANCE BUSINESS
FIFTH RULES FOR EXPLORATION AND PRODUCTION OF PETROLEUM AND OTHER MINERAL
DEPOSITS
SIXTH RULES RELATING TO PROVIDENT FUND, SUPPERANNUATION FUND, GRATUITY FUND
SEVENTH RULES FOR BANKING BUSINESS
EIGHTH RULES FOR COMPUTATION OF CAPITAL GAINS ON LISTED SECURITIES
NINTH RULES FOR COMPUTATION OF TAX PAYABLE FOR TRADERS
TENTH RULES FOR PERSONS NOT APPEARING IN ACTIVE TAXPAYERS LIST
ELEVENTH RULES FOR COMPUTATION OF TAX PAYABLE FOR BUILDERS AND DEVELOPERS
TWELFTH ADVANCE TAX PAID ON IMPORTS TO COLLECTION AGENTS
THIRTEENTH TAX CREDIT FOR CHARITABLE DONATIONS
FOURTEENTH RULES FOR COMPUTATION OF TAX PAYABLE FOR SMALL AND MEDIUM ENTERPRISES
 OTHER SOURCES OF LAW
 PROCEDURAL LAWS: INCOME TAX RULES, 2002

 NOTIFICATIONS AND CIRCULARS ISSUED BY FBR

 CASE LAWS – THE JUDGEMENTS AND INTERPRETATIONS OF THE

APPELLATE TRIBUNAL, HIGH COURTS AND THE SUPREME COURT
SCOPE OF TAX
 “TAX” u/s 2(63) means any tax imposed under Chapter II, and includes any penalty,
fee or other charge or surcharge or any sum or amount leviable or payable under this
Ordinance;

 “TAXABLE INCOME” u/s 2(64), 9 and 10 means the Person’s income under all
heads of income for the year reduced (but not below zero) by the total of any
deductible allowances for the year.

 “INCOME” u/s 2(29) includes any amount chargeable to tax under this Ordinance,
any amount subject to collection or deduction of tax under section 148, 150, 152(1),
153, 154, 156, 156A, 233, 234(5), 236Z and any amount treated as income under any
provision of this Ordinance and any loss of income
TAXPAYERS

 INDIVIDUALS
 ASSOCIATION OF PERSONS
 COMPANIES
TAX REGIMES – mode of charging Income Tax

 NORMAL TAX REGIME

 SEPARATE TAX REGIME / SEPARATE BLOCK OF INCOME
 FINAL TAX REGIME / PRESUMPTIVE TAX REGIME
 MINIMUM TAX REGIME
PROCEDURE FOR COMPUTATION OF
TAX LIABILITY – NTR p.67
 Determine total income of the person for the year separately for each head.
 Set off of losses including carried forward losses, if any.
 Ascertain deductible allowances to reach total income.
 Apply tax rates.
 Reduce available tax credits to reach taxable income.
 Deduct tax already deposited, if any, to reach payable or refundable tax.