The Income Tax Ordinance, 2001 explains how to calculate the cost of stock-in-trade when it is sold or used during the tax year 2025-26. Section 35 of the updated law gives a simple formula for this calculation.
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Stay updated on taxation news, tax laws, FBR policies, compliance, audits, income tax, sales tax, and fiscal developments in Pakistan.
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Accrual Based Accounting under Pakistan Tax Laws
The Income Tax Ordinance, 2001 clearly defines the principles of accrual based accounting for income under the head “Business” for the tax year 2025-26. Section 34 of the updated ordinance explains how income and expenses are treated under this system.
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FBR issues benchmarks for income tax exemptions
Islamabad, September 21, 2025 – The Federal Board of Revenue (FBR) has formally introduced benchmarks for determining income tax exemptions and concessions, aiming to enhance clarity and consistency in the taxation system.
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Tax rates 2025-26 on marriage functions in Pakistan
Islamabad, September 20, 2025 – The Federal Board of Revenue (FBR) has issued the updated withholding tax rates applicable on marriage functions during the tax year 2025-26. These rates have been outlined under Section 236CB of the Income Tax Ordinance, 2001.
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Return filing deadline extension not under consideration: FBR
Islamabad, September 20, 2025 – The Federal Board of Revenue (FBR) clarified on Saturday that an extension in the deadline for income tax return filing for Tax Year 2025 is not under consideration at present.
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Pakistan Customs aims to cut dwell time to 12 hours
Karachi, September 19, 2025 – Pakistan Customs has announced a major initiative to reduce the average cargo dwell time to just 12 hours, in line with the vision set by Prime Minister Shehbaz Sharif.
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FBR maintains strict penalties for sales tax payment defaults
Karachi, September 19, 2025 – The Federal Board of Revenue (FBR) has reaffirmed its stance on penalizing taxpayers who fail to meet their sales tax obligations for the tax year 2025–26.
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SRB introduces online agricultural income tax return facility
Karachi, September 19, 2025 – The Sindh Revenue Board (SRB) has rolled out an online agricultural income tax return form, aiming to make tax compliance easier and more accessible for farmers and landowners across the province.
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KTBA urges FBR to halt recovery notices, fix IRIS glitches
Karachi, September 19, 2025 – The Karachi Tax Bar Association (KTBA) has strongly urged the Federal Board of Revenue (FBR) to stop issuing recovery notices to taxpayers and immediately resolve long-standing technical issues on the IRIS portal.
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FBR reports 45% cut in tax exemption on gratuity income
Karachi, September 18, 2025 – The Federal Board of Revenue (FBR) has reported a 45 percent reduction in income tax exemption on gratuity payments to employees.
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